Parker Announces Consolidation of the Climate and Industrial Controls Group
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.
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"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 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; 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, |
December 31, |
March 31, |
September 30, |
December 31, 2012 |
March 31, |
|||||||||||||
| 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) |
Three Months Ending |
Fiscal Year-to-Date |
|||||||||||||||||
| September 30, |
December 31, 2011 |
March 31, |
June 30, |
September 30, |
December 31, 2011 |
March 31, |
June 30, |
||||||||||||
| 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) |
Three Months Ending |
Fiscal Year-to-Date |
|||||||||||||||||
| September 30, |
December 31, 2010 |
March 31, |
June 30, |
September 30, |
December 31, 2010 |
March 31, |
June 30, |
||||||||||||
| 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 |
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SOURCE Parker Hannifin Corporation
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