This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Parker Hannifin's CEO Discusses F4Q2012 Results - Earnings Call Transcript

The margins were strong 15.5% that also will go down in the record books as a record for the fourth quarter.

Cash flow was strong. We generated over $0.5 billion in operating cash flow in the quarter, I can remember years when we didn’t generate $0.5 billion. So this is pretty exciting for the company.

We also -- so those are some of the quarter highlights, for the year then we closed out the fiscal year for Parker with a number of records as well. That includes the record sales of $13.1 billion that was up 6.5%, just and I might want to point out that most all of that was organic growth in a very tough economic environment out there.

Total segment operating margin, which is really a highlight for the year was a record exceeding 15% and that was the first time in our history and for those of you that have been tracking us for a number of years, you’ll remember 10 years ago, when we launched the Win Strategy, we talked about hitting that 15% target. So we’re popping the champagne corks here a little bit, in the background if you hear some corks popping that’s what it’s all about.

But you may recall that as we went through this last 10-year period. We consistently improved margins year-on-year even in some pretty ugly periods where we had two major recessions for the company.

So, we -- in that 10-year period we dealt with two major recessions, we drove the margins up to what we see now as a record first time in the history of the company at 15%. And I know what everyone’s thinking that well this must be it, now that you’re at 15% only direction to go is down.

I would just point out one thing and that is, if you look at our North American industrial margins, we hit 17.6%. So we certainly don’t think that it’s the end of the road. I think there’s more room on the topline and certainly on the operating margin line to continue to move these to higher levels. We can talk more about that later in the Q&A session.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,815.43 +2.04 0.01%
S&P 500 2,091.39 +2.52 0.12%
NASDAQ 5,128.7440 +12.6010 0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs