ParkerHannifin Corp. (PH, Financial) filed Quarterly Report for the period ended 2010-03-31.
Parkerhannifin Corp. has a market cap of $10.93 billion; its shares were traded at around $67.98 with a P/E ratio of 29.1 and P/S ratio of 1.1. The dividend yield of Parkerhannifin Corp. stocks is 1.5%. Parkerhannifin Corp. had an annual average earning growth of 12.9% over the past 10 years.PH is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Lee Ainslie of Maverick Capital, John Buckingham of Al Frank Asset Management, Inc., Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, Dodge & Cox.
Other expense, net for the first nine months of fiscal 2010 included $11.0 million of asset writedowns, including assets related to a business whose divestiture was completed in the current-year quarter. Other expense, net in the prior-year quarter included $36.2 million of expense related to litigation settlements and $11.6 million of income related to insurance recoveries. Other expense, net for the first nine months of fiscal 2009 included $37.4 million of expense related to litigation settlements, $7.7 million of expense related to an investment and $11.6 million of income related to insurance recoveries.
Included in Industrial North American operating income are business realignment charges of $1.6 million and $6.0 million in the current-year quarter and prior-year quarter, respectively, and $9.9 million and $8.6 million for the first nine months of fiscal 2010 and fiscal 2009, respectively. Included in Industrial International operating income are business realignment charges of $12.8 million and $9.3 million in the current-year quarter and prior-year quarter, respectively, and $27.2 million and $12.4 million for the first nine months of fiscal 2010 and fiscal 2009, respectively. The business realignment expenses consist
primarily of severance costs resulting from plant closures as well as general reductions in the work force. The Company anticipates realizing cost savings resulting from the workforce reductions during the first nine months of fiscal 2010 of approximately $21.5 million in fiscal 2010 and approximately $37.1 million in fiscal 2011. The amount of savings that is actually realized may be lower than expected if the Company needs to hire employees in the future as a result of an increase in end-user demand. The Company expects to continue to take the actions necessary to structure appropriately the operations of the Industrial Segment. Such actions may include the necessity to record additional business realignment charges in fiscal 2010, the timing and amount of which has not been finalized. Also included in Industrial North American operating income for the prior-year quarter and first nine months of fiscal 2009 is income of $12.3 million related to retiree medical costs (see Note 9 to the Consolidated Financial Statements for further discussion).
Excluding the effect of foreign currency changes, the increase in net sales in the Climate & Industrial Controls Segment for the current-year quarter is primarily due to higher volume in the automotive and residential air conditioning markets more than offsetting the lower end-user demand experienced in most other markets. Net sales for the first nine months of fiscal 2010 reflect lower end-user demand experienced in most markets attributable primarily to the global recession. The higher margins in the current-year quarter and first nine months of fiscal 2010 are primarily due to the benefits of cost control measures and past business realignment actions. Margins for the current-year quarter also benefitted from the higher sales volume. Included in operating income are business realignment charges of $0.5 million and $1.9 million for the current-year quarter and prior-year quarter, respectively, and $3.7 million and $7.9 million in the first nine months of fiscal 2010 and fiscal 2009, respectively. The business realignment charges primarily relate to severance costs resulting from plant closures. The Company expects to realize cost savings resulting from the severance costs incurred during the first nine months of fiscal 2010 of approximately $1.9 million in fiscal 2010 and approximately $3.5 million in fiscal 2011. The amount of savings that is actually realized may be lower than expected if the Company needs to hire employees in the future as a result of an increase in end-user demand. The Company expects to continue to take the actions necessary to structure appropriately the operations of the Climate & Industrial Controls Segment. Such actions may include the necessity to record additional business realignment charges in fiscal 2010, the timing and amount of which has not been finalized. Operating income for the prior-year quarter and first nine months of fiscal 2009 includes income of $2.3 million related to retiree medical costs (see Note 9 to the Consolidated Financial Statements for further discussion).
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Parkerhannifin Corp. has a market cap of $10.93 billion; its shares were traded at around $67.98 with a P/E ratio of 29.1 and P/S ratio of 1.1. The dividend yield of Parkerhannifin Corp. stocks is 1.5%. Parkerhannifin Corp. had an annual average earning growth of 12.9% over the past 10 years.PH is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Lee Ainslie of Maverick Capital, John Buckingham of Al Frank Asset Management, Inc., Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, Dodge & Cox.
Highlight of Business Operations:
Gross profit margin increased in the current-year quarter primarily due to a combination of the higher sales volume and the benefits of past business realignment actions, especially in the Industrial North American operations. Gross margin for the first nine months of fiscal 2010 was lower than the comparable prior year period primarily due to a combination of the lower sales volume, resulting in manufacturing inefficiencies as well as higher business realignment expenses. Included in gross profit are business realignment charges of $14.1 million and $18.3 million in the current-year quarter and prior-year quarter, respectively, and $37.7 million and $28.8 million for the first nine months of fiscal 2010 and fiscal 2009, respectively.Other expense, net for the first nine months of fiscal 2010 included $11.0 million of asset writedowns, including assets related to a business whose divestiture was completed in the current-year quarter. Other expense, net in the prior-year quarter included $36.2 million of expense related to litigation settlements and $11.6 million of income related to insurance recoveries. Other expense, net for the first nine months of fiscal 2009 included $37.4 million of expense related to litigation settlements, $7.7 million of expense related to an investment and $11.6 million of income related to insurance recoveries.
Included in Industrial North American operating income are business realignment charges of $1.6 million and $6.0 million in the current-year quarter and prior-year quarter, respectively, and $9.9 million and $8.6 million for the first nine months of fiscal 2010 and fiscal 2009, respectively. Included in Industrial International operating income are business realignment charges of $12.8 million and $9.3 million in the current-year quarter and prior-year quarter, respectively, and $27.2 million and $12.4 million for the first nine months of fiscal 2010 and fiscal 2009, respectively. The business realignment expenses consist
primarily of severance costs resulting from plant closures as well as general reductions in the work force. The Company anticipates realizing cost savings resulting from the workforce reductions during the first nine months of fiscal 2010 of approximately $21.5 million in fiscal 2010 and approximately $37.1 million in fiscal 2011. The amount of savings that is actually realized may be lower than expected if the Company needs to hire employees in the future as a result of an increase in end-user demand. The Company expects to continue to take the actions necessary to structure appropriately the operations of the Industrial Segment. Such actions may include the necessity to record additional business realignment charges in fiscal 2010, the timing and amount of which has not been finalized. Also included in Industrial North American operating income for the prior-year quarter and first nine months of fiscal 2009 is income of $12.3 million related to retiree medical costs (see Note 9 to the Consolidated Financial Statements for further discussion).
Excluding the effect of foreign currency changes, the increase in net sales in the Climate & Industrial Controls Segment for the current-year quarter is primarily due to higher volume in the automotive and residential air conditioning markets more than offsetting the lower end-user demand experienced in most other markets. Net sales for the first nine months of fiscal 2010 reflect lower end-user demand experienced in most markets attributable primarily to the global recession. The higher margins in the current-year quarter and first nine months of fiscal 2010 are primarily due to the benefits of cost control measures and past business realignment actions. Margins for the current-year quarter also benefitted from the higher sales volume. Included in operating income are business realignment charges of $0.5 million and $1.9 million for the current-year quarter and prior-year quarter, respectively, and $3.7 million and $7.9 million in the first nine months of fiscal 2010 and fiscal 2009, respectively. The business realignment charges primarily relate to severance costs resulting from plant closures. The Company expects to realize cost savings resulting from the severance costs incurred during the first nine months of fiscal 2010 of approximately $1.9 million in fiscal 2010 and approximately $3.5 million in fiscal 2011. The amount of savings that is actually realized may be lower than expected if the Company needs to hire employees in the future as a result of an increase in end-user demand. The Company expects to continue to take the actions necessary to structure appropriately the operations of the Climate & Industrial Controls Segment. Such actions may include the necessity to record additional business realignment charges in fiscal 2010, the timing and amount of which has not been finalized. Operating income for the prior-year quarter and first nine months of fiscal 2009 includes income of $2.3 million related to retiree medical costs (see Note 9 to the Consolidated Financial Statements for further discussion).
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