Parker-Hannifin Corporation is a leading worldwide diversified manufacturer of motion and control technologies and systems,
including fluid power systems, electromechanical controls and related components. Fluid power involves the transfer and control of power through
the medium of liquid, gas or air, in hydraulic, pneumatic and vacuum applications. Fluid power systems move and position materials, control machines,
vehicles and equipment and improve industrial efficiency and productivity. Components of a simple fluid power system include one or more pumps which
generate pressure, one or more valves which control the flow of the fluid, one or more actuators which translate the pressure from the fluid into
mechanical energy, one or more filters to ensure proper fluid condition and numerous hoses, couplings, fittings and seals. Electromechanical controls
involve the use of electronic components and systems to control motion and precisely locate or vary speed in automation and aerospace applications.
In addition to motion and control products, the company also is a leading worldwide producer of fluid purification, fluid and fuel control, process instrumentation,
air conditioning, refrigeration, electromagnetic shielding and thermal management products and systems.
Parker Hannifin's Motion and control products and systems are used throughout various industries and in various applications. The company's 450,000 customers are found throughout virtually every significant manufacturing, transportation and processing industry. Parker Hannifin was incorporated in Ohio in 1938 and is headquartered in Cleveland.
As of July 1, 2013, Parker Hannifin consolidated its Climate & Industrial Controls businesses into existing operating groups within the Industrial Segment. As a result of this consolidation and the resulting change in management structure in connection with the strategic divestiture of certain operations in the Climate & Industrial Controls Segment, the Company now has two reporting segments: Diversified Industrial and Aerospace Systems.
Parker Hannifin operates in two principal business segments:
The following table highlights Parker Hannifin's sales from 2012 to 2014 by segment:
Aerospace Systems' sales are made primarily in the commercial and military aerospace markets to both original equipment manufacturers
and to end users for spares, maintenance, repair and overhaul.
The principal products of the Aerospace Systems segment include flight control, hydraulic, fuel, fluid conveyance, and engine systems
and components used on commercial and military airframe and engine programs.
The Aerospace Systems segment offers primary and secondary flight control systems and components used for precise control of aircraft rudders, elevators, ailerons and other aerodynamic control surfaces, including the following actuation components: Hydraulic; Electrohydraulic; Electric backup hydraulic; Electrohydrostatic; and Electro-mechanical.
The Aerospace Segment also offers complete hydraulic systems and components, including:
• Automatic bleed valves
• Electro hydraulic servo valves
• Electronic controllers and software
• Engine-driven pumps
• Filtration manifolds
• Hydraulic power packs
• Integration packages
• Motor pumps
• Power transfer units
• Selector valves
• Thrust-reverser systems
• Utility actuators.
The Aerospace Systems segment also designs and manufactures aircraft wheels, brakes and associated hydraulic components for general aviation, rotorcraft and military markets.
The Aerospace Segment's fuel product line offers complete fuel systems and components, including:
• Fuel tank inerting systems
• Refuel, transfer, and pressurization controls
• In-flight refueling systems
• Fuel pumps and valves
• Fuel measurement and management systems
• Fuel and pneumatic filtration
• Fluid conveyance equipment
• Center of gravity controls
• Engine fuel injection atomization nozzles, manifolds and augmentor controls
• Electronic monitoring computers and controllers
• Lightning-safe flame arresters, fuel caps, and adapters
• Water and waste subsystems.
The Aerospace Systems segment also offers fluid conveyance systems and components, including:
• Rubber, metal, and PTFE hose assemblies
• Rigid tube assemblies
• Couplings, quick disconnects, fittings, joints, and unions
• Valves and regulators.
The Aerospace Systems segment also produces various engine systems and components, including:
• Pneumatic subsystems
• Low-pressure pneumatic controls
• Engine starter systems
• Fuel valves and manifolds
• Oil and lubrication pumps and equipment
• Heat management
• Engine bleed control and anti-ice systems
• Electronic control and monitoring computers
• Motor-driven and hydraulic pumps
• Fuel and pneumatic filtration
• Fluid conveyance systems and engine build units
• Thrust reverser actuation.
The Aerospace Systems segment also offers electronic thermal management heat rejection systems and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics.
Financial results for Parker Hannifin's Aerospace Systems segment were as follows:
Sales in 2014 were lower than the 2013 level as higher volume in the commercial original equipment manufacturer (OEM) business was offset by the absence of sales from the deconsolidated subsidiary whose sales are now reported by the joint venture with GE Aviation as well as lower volume in the military OEM and aftermarket businesses and the commercial aftermarket business.
The lower margin in 2014 was primarily due to an unfavorable product mix, the impact of the joint venture with GE Aviation, and higher product support costs. Margins in 2014 were favorably impacted by the finalization of contract negotiations related to certain programs.
For 2015, sales are expected to increase 2-3% percent from the 2014 level and operating margins are expected to range from 13.1% to 13.9%. A higher concentration of commercial OEM volume in future product mix and higher than expected new product development costs could result in lower margins.
The products produced by Parker Hannifin's Diversified Industrial segment consist of a broad range of motion and control technologies and systems, which are described below by group.
Pneumatic, fluidic and electromechanical components and systems, including:
• AC/DC drives and systems
• Air preparation units
• Electric actuators, gantry robots and slides
• Fluidic valves and pumps
• Human-machine interfaces
• Pneumatic actuators and grippers
• Pneumatic valves and controls
• Rotary actuators
• Solenoid valves
• Stepper motors, servo motors, drives and controls
• Structural extrusions
• Vacuum generators, cups and sensors
Static and dynamic sealing devices, including:
• Dynamic seals
• Elastomeric o-rings
• Electro-medical instrument design and assembly
• Electromagnetic interference shielding
• Extruded and precision-cut fabricated elastomeric seals
• High-temperature metal seals
• Homogeneous and inserted elastomeric shapes
• Medical devices
• Metal and plastic retained composite seals
• Shielded optical windows
• Silicone tubing and extrusions
• Thermal management products
• Vibration dampening
Filters, systems and diagnostics solutions to monitor and remove contaminants from fuel, air, oil, water and other liquids and gases, including:
• Analytical gas generators
• Compressed air and gas filters and dryers
• Engine air, coolant, fuel and oil filtration systems
• Filtration and purification systems
• Fluid condition monitoring systems
• Hydraulic and lubrication filters
• Instrumentation filters
• Membrane and fiber filters
• Nitrogen and hydrogen generators
• Sterile air filtration
• Water desalinization and purification filters/systems
Connectors which control, transmit and contain fluid, including:
• Check valves
• Connectors for low pressure fluid conveyance
• Deep sea umbilicals
• Diagnostic equipment
• Hose couplings
• Industrial hose
• Mooring systems and power cables
• PTFE hose and tubing
• Quick couplings
• Rubber and thermoplastic hose
• Tube fittings and adapters
• Tubing and plastic fittings
Hydraulic components and systems for builders and users of industrial and mobile machinery and equipment, including:
• Cartridge valves
• Electrohydraulic actuators
• Electronic displays
• Electronic I/O controllers
• Fan drives
• Hybrid drives
• Hydraulic cylinders
• Hydraulic motors and pumps
• Hydraulic systems
• Hydraulic valves and controls
• Hydrostatic steering units
• Integrated hydraulic circuits
• Power take-off equipment
• Power units
• Rotary actuators
• Telematic controllers
High quality critical flow components for process instrumentation, healthcare and ultra-high-purity applications and components
for use in refrigeration and air conditioning systems and in fluid control applications for processing, fuel dispensing,
beverage dispensing and mobile emissions, including:
• Analytical instruments and sample conditioning systems
• CNG dispensers
• CO2 controls
• Electronic controllers
• Filter driers
• Fluoropolymer chemical delivery fittings, valves and pumps
• Hand shut-off valves
• High pressure fittings, valves, pumps and systems
• High-purity gas delivery fittings, valves, regulators and digital flow controllers
• Industrial mass flow meters/controllers
• Medical devices
• Pressure regulating valves
• Process control fittings, valves, regulators and manifold valves
• Refrigerant distributors
• Safety relief valves
• Solenoid valves
• Thermostatic expansion valves
Industrial segment products include standard products, as well as custom products which are engineered and produced to original equipment manufacturers' specifications for application to a particular end product. Both standard and custom products are also used in the replacement of original motion and control products.
Financial results for Parker Hannifin's Diversified Industrial segment were as follows:
Sales in 2014 for the Diversified Industrial North American operations increased 1.0% from 2013 compared to a 1.2% decrease from 2012 to 2013. Acquisitions completed within the last 12 months contributed approximately $53 million in sales in 2014. The effect of currency rate changes decreased 2014 net sales by approximately $26 million, reflecting the strengthening of the U.S. dollar against the Canadian dollar. Excluding acquisitions and the effect of currency rate changes, the change in sales in 2014 reflects higher demand from distributors as well as from end-users in the construction equipment and oil and gas markets, partially offset by lower end-user demand in the heavy-duty truck, farm and agriculture equipment, engine, and car and light truck markets.
Sales in the Diversified Industrial International operations increased 3.5% in 2014 compared to a decrease of 4.2% from 2012 to 2013. Acquisitions completed within the last 12 months contributed approximately $21 million in sales in 2014. The effect of currency rate changes did not have an overall impact on sales in 2014 as currency rate changes in Europe were offset by currency rate changes in the Asia Pacific region and Latin America. Excluding acquisitions and the effect of currency rate changes, sales in 2014 in the Diversified Industrial International operations increased 3.1%, primarily due to higher volume in all regions with 50 percent of the increase occurring in the Asia Pacific region and one-third of the increase occurring in Europe.
The absence of sales from divested businesses was also a contributing factor to the sales fluctuation between 2013 and 2014 in both the Diversified Industrial North American and Diversified Industrial International businesses.
The increase in operating margins in 2014 in the Diversified Industrial North American operations was primarily due to the higher sales volume, a favorable product mix and lower raw material prices, partially offset by higher intangible asset amortization expense related to 2013 acquisitions. The decrease in operating margins in 2014 in the Diversified Industrial International operations was primarily due to higher business realignment charges and associated operating inefficiencies partially offset by the impact of the higher sales volume and a favorable product mix.
The company anticipates Diversified Industrial North American sales for 2015 will increase between 3.0% and 7.0% from the 2014 level and Diversified Industrial International sales for 2015 will increase between 1.0% and 4.0% from the 2014 level. Diversified Industrial North American operating margins in 2015 are expected to range from 16.5% to 16.9% and Diversified Industrial International margins are expected to range from 14.7% to 15.7%.
Revenues ('14): $13,216M +1.5%
R&D ('14): $354M +1.9%
Net Profit ('14): $1,041M +9.8%
CAPEX ('14): $216M -18.6%
Motion & Flow Control
Accumulators; Automatic bleed valves; Electrohydraulic servo valves; Electronic controllers and software; Engine-driven pumps; Filtration manifolds; Hydraulic power packs; Integration packages; Motor pumps; Power transfer units; Reservoirs; Selector valves; Thrust-reverser systems; Utility actuators; Fuel tank inerting systems; Refuel, transfer, and pressurization controls; In-flight refueling systems; Fuel pumps and valves; Fuel measurement and management systems; Fuel and pneumatic filtration; Fluid conveyance equipment; Center of gravity controls; Engine fuel injection atomization nozzles, manifolds and augmentor controls; Electronic monitoring computers and controllers; Lightning-safe flame arresters, fuel caps, and adapters; Water and waste subsystems; Rubber, metal, and PTFE hose assemblies; Rigid tube assemblies; Couplings, quick disconnects, fittings, joints, and unions; Valves and regulators; Pneumatic subsystems; Low-pressure pneumatic controls; Engine starter systems; Fuel valves and manifolds; Engine bleed control and anti-ice systems; Electronic control and monitoring computers; Fuel and pneumatic filtration; Fluid conveyance systems and engine build units ; Motor-driven and hydraulic pumps; Oil and lubrication pumps and equipment; and Thrust reverser actuation.
Major DoD Defense Programs:
Parker Hannifin's Commercial Programs:
| Airbus: A320 Series, A330, A350 XWB, A380 |
|Sales 2010-2014||Net Income 2010-2014||R&D Spending 2010-2014||# Employees 2010-2014|