Parker Reports Fiscal 2013 Fourth Quarter and Year End Results

        Parker Reports Fiscal 2013 Fourth Quarter and Year End Results

- Fiscal 2013 Fourth Quarter Sales a Record at $3.43 Billion

- Achieves Fiscal 2013 Full Year Diluted Earnings per Share of $6.26

- Issues Guidance for Fiscal 2014 Full Year Earnings

PR Newswire

CLEVELAND, Aug. 6, 2013

CLEVELAND, Aug. 6, 2013 /PRNewswire/-- Parker Hannifin Corporation (NYSE:
PH), the global leader in motion and control technologies, today reported
results for the fiscal 2013 fourth quarter and year ended June 30, 2013.
Fiscal 2013 sales were $13.0 billion, compared with $13.1 billion in fiscal
2012. Net income for the year was $948.8 million, compared with $1,155.5
million in fiscal 2012. Fiscal 2013 earnings per diluted share were $6.26,
compared with $7.45 in the previous year, and included an increase in domestic
qualified pension expense of approximately $0.35 per diluted share due to
accounting regulations which required the use of a lower discount rate due to
market conditions. Cash flow from operations for fiscal 2013 was $1.2
billion, or 9.1 percent of sales, compared with cash flow from operations of
$1.5 billion, or 11.6 percent of sales, in the prior year. Cash flow from
operations in fiscal 2013 included a $225.6 million discretionary contribution
to the company's pension plan. Excluding this contribution, cash flow from
operations as a percent of sales was 10.9 percent for fiscal 2013.

(Logo: http://photos.prnewswire.com/prnh/19990816/PHLOGO)

Fiscal 2013 fourth quarter sales were a record at $3.43 billion compared with
$3.41 billion in the same quarter a year ago. Net income for the fiscal 2013
fourth quarter was $271.1 million, compared with $302.3 million in the fourth
quarter of fiscal 2012. Earnings per diluted share for the fiscal 2013 fourth
quarter were $1.78, compared with $1.96 in last year's fourth quarter.
Earnings per diluted share wereless than expected due toreduced
volumesandgreater than anticipated inventory, acquisition, integration and
related expenses.

"Our performance in fiscal year 2013 largely reflects challenging global
macro-economic conditions and integration and acquisition related costs," said
Chairman, CEO and President, Don Washkewicz. "As the year progressed, we
continued to adapt to weak conditions and drive stronger operational
performance finishing positively with record fourth quarter sales and our
highest quarterly segment operating margin for the fiscal year at 14.5
percent. For the year, we were able to deliver high levels of segment
operating margin and operating cash flows."

Fourth Quarter Segment Results

In Industrial North America, fiscal 2013 fourth quarter sales decreased 2.6
percent to $1.3 billion, and operating income was $225.1 million compared with
$249.1 million in the same period a year ago.

In Industrial International, fourth quarter sales increased 3.3 percent to
$1.28 billion, and operating income was $156.2 million compared with $163.9
million in the same period a year ago.

In Aerospace, fourth quarter sales increased 9.5 percent to $620.0 million,
and operating income was $86.1 million compared with $85.3 million in the same
period a year ago.

In Climate and Industrial Controls, fourth quarter sales decreased 16.3
percent to $224.6 million, and operating income was $31.1 million compared
with $31.5 million in the same period a year ago. These results reflect the
impact of business divestitures completed in fiscal 2013.

Orders

Parker reported orders that were flat for the quarter ended June 30, 2013,
compared with the same quarter a year ago. The company reported the following
orders:

  oOrders decreased 5 percent in Industrial North America, compared with the
    same quarter a year ago.
  oOrders increased 3 percent in Industrial International, compared with the
    same quarter a year ago.
  oOrders increased 3 percent in Aerospace on a rolling 12-month average
    basis.
  oOrders were flat in Climate and Industrial Controls, compared with the
    same quarter a year ago.

Fiscal 2014 Outlook

For fiscal 2014, the company has issued guidance for earnings from continuing
operations in the range of $7.35 to $8.15 per diluted share. Fiscal 2014
guidance includes an expected gain of approximately $1.50 per diluted share
associated with a previously announced joint venture agreement between Parker
Aerospace and GE Aviation and expenses related to possible restructuring of
approximately $100 million.

Washkewicz added, "Our current outlook is that throughout fiscal 2014, global
macro-economic conditions will remain relatively flat. As a result, we plan
to spend approximately $100 million to right size our global operations, which
we believe is prudent given these conditions. We will continue to manage our
business accordingly while executing the Win Strategy by investing in new
product development, expansion in emerging markets, and acquisitions to
strengthen our portfolio. These operational actions, combined with our
dividend, are expected to deliver strong returns for our shareholders."

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide
presentation to discuss its fiscal 2013 fourth quarter and full year results
are available to all interested parties via live webcast today at 11:00 a.m.
ET, on the company's investor information web site at www.phstock.com. To
access the call, click on the "Live Webcast" link. From this link, users also
may complete a pre-call system test and register for e-mail notification of
future events and information available from Parker. A replay of the
conference call will also be available at www.phstock.com for one year after
the call.

With annual sales of $13 billion in fiscal year 2013, Parker Hannifin is the
world's leading diversified manufacturer of motion and control technologies
and systems, providing precision-engineered solutions for a wide variety of
mobile, industrial and aerospace markets. The company employs approximately
58,000 people in 49 countries around the world. Parker has increased its
annual dividends paid to shareholders for 57 consecutive fiscal years, among
the top five longest-running dividend-increase records in the S&P 500 index.
For more information, visit the company's web site at www.parker.com, or its
investor information web site at www.phstock.com.

Notes on Orders

Orders provide near-term perspective on the company's outlook, particularly
when viewed in the context of prior and future quarterly order rates. However,
orders are not in themselves an indication of future performance. All
comparisons are at constant currency exchange rates, with the prior year
restated to the current-year rates. All exclude acquisitions until they can be
reflected in both the numerator and denominator. Aerospace comparisons are
rolling 12-month average computations. The total Parker orders number is
derived from a weighted average of the year-over-year quarterly percent change
in orders for the Industrial North America, Industrial International, and
Climate and Industrial Controls segments, and the year-over-year 12-month
rolling average of orders for the Aerospace segment.

Forward-Looking Statements

Forward-looking statements contained in this and other written and oral
reports are made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen uncertainties
and risks. All statements regarding future performance, earnings projections,
events or developments are forward-looking statements. It is possible that the
future performance and earnings projections of the company, including its
individual segments, may differ materially from current expectations,
depending on economic conditions within its mobile, industrial and aerospace
markets, and the company's ability to maintain and achieve anticipated
benefits associated with announced realignment activities, strategic
initiatives to improve operating margins, actions taken to combat the effects
of the current economic environment, and growth, innovation and global
diversification initiatives. A change in the economic conditions in individual
markets may have a particularly volatile effect on segment performance. Among
other factors which may affect future performance are: changes in business
relationships with and purchases by or from major customers, suppliers or
distributors, including delays or cancellations in shipments, disputes
regarding contract terms or significant changes in financial condition,
changes in contract cost and revenue estimates for new development programs
and changes in product mix; ability to identify acceptable strategic
acquisition targets; uncertainties surrounding timing, successful completion
or integration of acquisitions and similar transactions, including the
anticipated closing of the previously announced joint venture with GE
Aviation; the determination to undertake business realignment activities and
the expected costs thereof and, if undertaken, the ability to complete such
activities and realize the anticipated cost savings from such activities;
ability to realize anticipated benefits from the consolidation of the Climate
and Industrial Controls Group;threats associated with and efforts to combat
terrorism; uncertainties surrounding the ultimate resolution of outstanding
legal proceedings, including the outcome of any appeals; competitive market
conditions and resulting effects on sales and pricing; increases in raw
material costs that cannot be recovered in product pricing; the company's
ability to manage costs related to insurance and employee retirement and
health care benefits; and global economic factors, including manufacturing
activity, air travel trends, currency exchange rates, difficulties entering
new markets and general economic conditions such as inflation, deflation,
interest rates and credit availability. The company makes these statements as
of the date of this disclosure, and undertakes no obligation to update them
unless otherwise required by law.



PARKER HANNIFIN CORPORATION - JUNE 30, 2013
CONSOLIDATED STATEMENT OF INCOME
                                                  

                       Three Months Ended June     Year Ended June 30,
                       30,
(Dollars in
thousands except       2013           2012         2013          2012
per share amounts)
Net sales              $  3,428,233  $           $ 13,015,704  $ 13,145,942
                                      3,411,666
Cost of sales          2,618,067      2,572,258    10,086,675    9,958,337
Gross profit           810,166        839,408      2,929,029     3,187,605
Selling, general
and administrative     413,061        386,681      1,554,973     1,519,316
expenses
Interest expense       20,777         23,487       91,552        92,790
Other expense          2,565          3,901        (28,497)      (1,199)
(income), net
Income before          373,763        425,339      1,311,001     1,576,698
income taxes
Income taxes           102,633        123,037      362,217       421,206
Net income             271,130        302,302      948,784       1,155,492
Less:
Noncontrolling         (34)           337          357           3,669
interests
Net income
attributable to        $            $          $           $ 
common                 271,164       301,965      948,427      1,151,823
shareholders
Earnings per share
attributable to
common
shareholders:
 Basic earnings      $         $       $        $     
per share             1.82          2.01         6.36         7.62
 Diluted             $         $       $        $     
earnings per share     1.78          1.96         6.26         7.45
Average shares
outstanding during     149,298,277    150,470,993  149,218,257   151,222,033
period - Basic
Average shares
outstanding during     152,115,402    154,155,617  151,588,031   154,664,510
period - Diluted
Cash dividends per     $        $       $        $     
common share           .45            .41        1.70         1.54
BUSINESS SEGMENT INFORMATION BY
INDUSTRY
                                                  

                       Three Months Ended June     Year Ended June 30,
                       30,
(Dollars in            2013           2012         2013          2012
thousands)
Net sales
 Industrial:
 North           $  1,303,203  $           $            $ 
America                               1,337,580   5,050,604     5,041,106
                 1,280,443      1,239,571    4,867,758     5,034,249
International
 Aerospace          619,950        565,990      2,267,715     2,102,747
 Climate &
Industrial             224,637        268,525      829,627       967,840
Controls
Total                  $  3,428,233  $           $ 13,015,704  $ 
                                      3,411,666                 13,145,942
Segment operating
income
 Industrial:
 North           $            $         $           $   
America                225,071       249,059     845,225      895,010
                 156,233        163,899      583,747       733,123
International
 Aerospace          86,136         85,311       280,286       290,135
 Climate &
Industrial             31,063         31,456       82,227        84,274
Controls
Total segment          498,503        529,725      1,791,485     2,002,542
operating income
Corporate general
and administrative     59,189         50,838       185,767       193,367
expenses
Income before
interest and           439,314        478,887      1,605,718     1,809,175
other
Interest expense       20,777         23,487       91,552        92,790
Other expense          44,774         30,061       203,165       139,687
Income before          $            $         $            $ 
income taxes           373,763       425,339      1,311,001     1,576,698
CONSOLIDATED BALANCE SHEET
                       June 30,     June, 30
(Dollars in            2013           2012
thousands)
Assets
Current assets:
Cash and cash          $  1,781,412  $   
equivalents                           838,317
Accounts               2,062,745      1,992,284
receivable, net
Inventories            1,377,405      1,400,732
Prepaid expenses       182,669        137,429
Deferred income        126,955        129,352
taxes
Total current          5,531,186      4,498,114
assets
Plant and              1,808,240      1,719,968
equipment, net
Goodwill               3,223,515      2,925,856
Intangible assets,     1,290,499      1,095,218
net
Other assets           687,458        931,126
Total assets           $ 12,540,898   $ 
                                      11,170,282
Liabilities and
equity
Current
liabilities:
Notes payable          $  1,333,826  $   
                                      225,589
Accounts payable       1,156,002      1,194,684
Accrued                894,296        911,931
liabilities
Accrued domestic       136,079        153,809
and foreign taxes
Total current          3,520,203      2,486,013
liabilities
Long-term debt         1,495,960      1,503,946
Pensions and other
postretirement         1,372,437      1,909,755
benefits
Deferred income        102,920        88,091
taxes
Other liabilities      307,897        276,747
Shareholders'          5,738,426      4,896,515
equity
Noncontrolling         3,055          9,215
interests
Total liabilities      $ 12,540,898   $ 
and equity                            11,170,282
CONSOLIDATED STATEMENT OF CASH FLOWS
                       Year Ended June 30,
(Dollars in            2013           2012
thousands)
Cash flows from
operating
activities:
Net income             $            $  
                       948,784       1,155,492
Depreciation and       335,624        321,929
amortization
Stock incentive        84,996         80,935
plan compensation
Net change in
receivables,           11,230         (59,732)
inventories, and
trade payables
Net change in
other assets and       (195,938)      86,407
liabilities
Other, net             6,239          (54,646)
Net cash provided
by operating           1,190,935      1,530,385
activities
Cash flows from
investing
activities:
Acquisitions (net
of cash of $33,932     (621,144)      (156,256)
in 2013 and
$19,161 in 2012)
Capital                (265,896)      (218,817)
expenditures
Proceeds from sale
of plant and           25,047         20,404
equipment
Proceeds from sale     73,515         -
of businesses
Other, net             (21,367)       (21,099)
Net cash (used in)
investing              (809,845)      (375,768)
activities
Cash flows from
financing
activities:
Net payments for
common stock           (159,773)      (430,263)
activity
Acquisition of
noncontrolling         (1,091)        (147,441)
interests
Net proceeds from
(payments for)         992,047        (5,162)
debt
Dividends              (255,009)      (240,654)
Net cash provided
by (used in)           576,174        (823,520)
financing
activities
Effect of exchange
rate changes on        (14,169)       (150,246)
cash
Net increase in
cash and cash          943,095        180,851
equivalents
Cash and cash
equivalents at         838,317        657,466
beginning of
period
Cash and cash                         $   
equivalents at end     $  1,781,412  838,317
of period



SOURCE Parker Hannifin Corporation

Website: http://www.phstock.com
Contact: Media - Aidan Gormley, Director, Corporate Communications,
216/896-3258, aidan.gormley@parker.com; Financial Analysts - Pamela Huggins,
Vice President - Treasurer, 216/896-2240, phuggins@parker.com
 
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