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Press release from PR Newswire

Parker Announces Consolidation of the Climate and Industrial Controls Group

Wednesday, July 31, 2013

Parker Announces Consolidation of the Climate and Industrial Controls Group

08:59 EDT Wednesday, July 31, 2013

CLEVELAND, July 31, 2013 /PRNewswire/ -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that it has consolidated its Climate and Industrial Controls (CIC) group into other existing operating groups within the company's Industrial Segment.  As a result of this consolidation and the resulting change in management structure, the company will have two reporting segments beginning with fiscal year 2014, Diversified Industrial (which will continue to include supplemental sales and profitability data for North America and International) and Aerospace Systems.

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

"We have completed strategic divestitures within the CIC group during this past year, including our previously announced transaction to sell the automotive air conditioning portion of our Mobile Climate Systems Division to ContiTech AG," said Chairman, CEO and President, Don Washkewicz.  "We believe this change in group and management structure will better leverage the natural synergies among our operating groups and will foster greater focus, efficiencies and opportunities for growth. Our new reporting segment names more accurately describe the breadth of our capabilities and the position we have achieved as an innovative provider of highly engineered aerospace systems to our customers."

In fiscal year 2014, the financial results of the CIC group will be reported in the Diversified Industrial Segment.  On a geographic basis, approximately 70% of CIC group sales will be reported within Diversified Industrial North America and approximately 30% of CIC group sales will be reported within Diversified Industrial International.

The company also announced that, beginning with the first quarter of fiscal year 2014, it will provide supplemental information, including sales, on three global technology platforms.  This supplemental information is expected to provide greater clarity into the operations that comprise the Diversified Industrial Segment.  The three global technology platforms are strategically aligned based on complementary technologies and will be called Motion Systems, Flow and Process Control, and Filtration and Engineered Materials.

"This supplemental information will provide greater transparency and showcase the breadth of the technologies that we leverage in unique ways to meet our customers' needs around the world," added Washkewicz.  "We believe that this information will broaden awareness of our competitive strengths and the scope of our global footprint, end markets, sales channels, products and applications."

Historical sales and operating income for the CIC segment, that will now be included in the Diversified Industrial Segment in North America and International, is included in this press release and will be posted on the company's investor information site at www.phstock.com.   

With annual sales exceeding $13 billion in fiscal year 2012, 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 60,000 people in 48 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.

Forward-Looking StatementsForward-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; ability to realize anticipated cost savings from business realignment activities; ability to realize anticipated benefits of 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

BUSINESS SEGMENT INFORMATION BY INDUSTRY - REFLECTING CONSOLIDATION OF CIC SEGMENT INTO INDUSTRIAL SEGMENT

FY2013

(Unaudited)

(Dollars in thousands)

Three Months Ending

Fiscal Year-to-Date

September 30, 2012

December 31,2012

March 31,2013

September 30, 2012

December 31, 2012

March 31,2013

Net sales

Industrial:

North America

North America - As Reported

$        1,266,047

$        1,197,705

$        1,283,649

$        1,266,047

$        2,463,752

$        3,747,401

CIC North America

159,232

119,675

144,781

159,232

278,907

423,688

North America w/ CIC

1,425,279

1,317,380

1,428,430

1,425,279

2,742,659

4,171,089

International

International - As Reported

1,176,890

1,168,961

1,241,464

1,176,890

2,345,851

3,587,315

CIC International

71,683

50,498

59,121

71,683

122,181

181,302

International w/ CIC

1,248,573

1,219,459

1,300,585

1,248,573

2,468,032

3,768,617

Aerospace

541,083

528,656

578,026

541,083

1,069,739

1,647,765

Total

$        3,214,935

$        3,065,495

$        3,307,041

$        3,214,935

$        6,280,430

$        9,587,471

Segment operating income

Industrial:

North America

North America - As Reported

$           227,192

$           183,914

$           209,048

$           227,192

$           411,106

$           620,154

CIC North America

16,883

6,517

15,439

16,883

23,400

38,839

North America w/ CIC

244,075

190,431

224,487

244,075

434,506

658,993

International

International - As Reported

151,771

123,434

152,309

151,771

275,205

427,514

CIC International

4,827

1,613

5,885

4,827

6,440

12,325

International w/ CIC

156,598

125,047

158,194

156,598

281,645

439,839

Aerospace

61,898

52,172

80,080

61,898

114,070

194,150

Total segment operating income

462,571

367,650

462,761

462,571

830,221

1,292,982

Corporate general and administrative expenses

39,767

45,401

41,410

39,767

85,168

126,578

Income before interest and other expense

422,804

322,249

421,351

422,804

745,053

1,166,404

Interest expense

23,509

24,216

23,050

23,509

47,725

70,775

Other expense

63,237

35,404

59,750

63,237

98,641

158,391

Income before income taxes

$           336,058

$           262,629

$           338,551

$           336,058

$           598,687

$           937,238

 

PARKER HANNIFIN CORPORATION

BUSINESS SEGMENT INFORMATION BY INDUSTRY - REFLECTING CONSOLIDATION OF CIC SEGMENT INTO INDUSTRIAL SEGMENT

FY2012

(Unaudited)(Dollars in thousands)

Three Months Ending

Fiscal Year-to-Date 

September 30, 2011

December 31, 2011

March 31, 2012

June 30,2012

September 30, 2011

December 31, 2011

March 31, 2012

June 30,2012

Net sales

Industrial:

North America

North America - As Reported

$        1,204,817

$        1,183,352

$        1,315,357

$        1,337,580

$        1,204,817

$        2,388,169

$        3,703,526

$        5,041,106

CIC North America

165,310

138,030

171,338

192,273

165,310

303,340

474,678

666,951

North America w/ CIC

1,370,127

1,321,382

1,486,695

1,529,853

1,370,127

2,691,509

4,178,204

5,708,057

International

International - As Reported

1,289,115

1,218,812

1,286,751

1,239,571

1,289,115

2,507,927

3,794,678

5,034,249

CIC International

77,147

70,133

77,357

76,252

77,147

147,280

224,637

300,889

International w/ CIC

1,366,262

1,288,945

1,364,108

1,315,823

1,366,262

2,655,207

4,019,315

5,335,138

Aerospace

497,492

496,505

542,760

565,990

497,492

993,997

1,536,757

2,102,747

Total

$        3,233,881

$        3,106,832

$        3,393,563

$        3,411,666

$        3,233,881

$        6,340,713

$        9,734,276

$      13,145,942

Segment operating income

Segment operating income

Industrial:

North America

North America - As Reported

$           223,227

$           195,738

$           226,986

$           249,059

$           223,227

$           418,965

$           645,951

$           895,010

CIC North America

15,556

6,980

16,781

25,925

15,556

22,536

39,317

65,242

North America w/ CIC

238,783

202,718

243,767

274,984

238,783

441,501

685,268

960,252

International

International - As Reported

208,219

165,940

195,065

163,899

208,219

374,159

569,224

733,123

CIC International

4,236

2,843

6,422

5,531

4,236

7,079

13,501

19,032

International w/ CIC

212,455

168,783

201,487

169,430

212,455

381,238

582,725

752,155

Aerospace

68,637

70,262

65,925

85,311

68,637

138,899

204,824

290,135

Total segment operating income

519,875

441,763

511,179

529,725

519,875

961,638

1,472,817

2,002,542

Corporate general and administrative expenses

58,016

46,136

38,377

50,838

58,016

104,152

142,529

193,367

Income before interest and other expense

461,859

395,627

472,802

478,887

461,859

857,486

1,330,288

1,809,175

Interest expense

23,221

23,769

22,313

23,487

23,221

46,990

69,303

92,790

Other expense

27,053

32,911

49,662

30,061

27,053

59,964

109,626

139,687

Income before income taxes

$           411,585

$           338,947

$           400,827

$           425,339

$           411,585

$           750,532

$        1,151,359

$        1,576,698

 

PARKER HANNIFIN CORPORATION

BUSINESS SEGMENT INFORMATION BY INDUSTRY - REFLECTING CONSOLIDATION OF CIC SEGMENT INTO INDUSTRIAL SEGMENT

FY2011

(Unaudited)(Dollars in thousands)

Three Months Ending

Fiscal Year-to-Date 

September 30, 2010

December 31, 2010

March 31, 2011

June 30,2011

September 30, 2010

December 31, 2010

March 31, 2011

June 30,2011

Net sales

Industrial:

North America

North America - As Reported

$        1,064,915

$        1,045,469

$        1,178,714

$        1,227,412

$        1,064,915

$        2,110,384

$        3,289,098

$        4,516,510

CIC North America

166,088

144,692

184,772

192,490

166,088

310,780

495,552

688,042

North America w/ CIC

1,231,003

1,190,161

1,363,486

1,419,902

1,231,003

2,421,164

3,784,650

5,204,552

International

International - As Reported

1,092,981

1,147,231

1,293,047

1,380,748

1,092,981

2,240,212

3,533,259

4,914,007

CIC International

68,609

69,642

79,764

84,312

68,609

138,251

218,015

302,327

International w/ CIC

1,161,590

1,216,873

1,372,811

1,465,060

1,161,590

2,378,463

3,751,274

5,216,334

Aerospace

436,680

459,630

503,806

521,868

436,680

896,310

1,400,116

1,921,984

Total

$        2,829,273

$        2,866,664

$        3,240,103

$        3,406,830

$        2,829,273

$        5,695,937

$        8,936,040

$      12,342,870

Segment operating income

Segment operating income

Industrial:

North America

North America - As Reported

$           189,362

$           159,429

$           189,463

$           207,290

$           189,362

$           348,791

$           538,254

$           745,544

CIC North America

16,449

6,658

18,023

17,654

16,449

23,107

41,130

58,784

North America w/ CIC

205,811

166,087

207,486

224,944

205,811

371,898

579,384

804,328

International

International - As Reported

183,800

167,776

199,798

202,848

183,800

351,576

551,374

754,222

CIC International

5,103

2,843

4,554

4,850

5,103

7,946

12,500

17,350

International w/ CIC

188,903

170,619

204,352

207,698

188,903

359,522

563,874

771,572

Aerospace

43,776

63,644

68,984

70,722

43,776

107,420

176,404

247,126

Total segment operating income

438,490

400,350

480,822

503,364

438,490

838,840

1,319,662

1,823,026

Corporate general and administrative expenses

33,354

37,593

41,734

51,187

33,354

70,947

112,681

163,868

Income before interest and other expense

405,136

362,757

439,088

452,177

405,136

767,893

1,206,981

1,659,158

Interest expense

24,633

25,631

24,619

24,821

24,633

50,264

74,883

99,704

Other expense

44,139

30,876

24,752

45,966

44,139

75,015

99,767

145,733

Income before income taxes

$           336,364

$           306,250

$           389,717

$           381,390

$           336,364

$           642,614

$        1,032,331

$        1,413,721

 

 

SOURCE Parker Hannifin Corporation

For further information: 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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