The Parker Management Committee consists of seven members: the Chairman and CEO, four Executive Vice Presidents overseeing key business functions, and two Senior Vice Presidents who are also Operating Officers. In addition, there are ten Group Presidents and Officers who lead Parker's various product groups, and seven Corporate Officers who oversee important corporate functions.
Speaker: Andrew Bargerstock
CPA, Associate Professor of Management,
Director of the MBA Program
B.A. Economics, Muhlenberg College
M.B.A., University of Pittsburgh
C.P.A., Pennsylvania
Ph.D., Maharishi University of Management
Andrew Bargerstock worked as an executive with a Fortune 500 company, established two successful businesses, and consulted with many companies including Allstate Insurance, BJC Health System, W.L. Gore & Associates, US Patent and Trademark Office, and Virginia Department of Social Services. He was one of two professors in the USA to be awarded the Lean Enterprise Institute's (LEI) 2009 Excellence in Lean Accounting Professor Award.
In fiscal year 2016 Parker team members implemented the new Win Strategy™ and delivered unprecedented financial performance during a global market downturn.
Momentum from the new Win Strategy has positioned Parker for another year of margin improvements and increased earnings as sales stabilize in fiscal year 2017.
Looking ahead, the powerful combination of Parker’s highly engaged people, unique motion and control capabilities and the new Win Strategy will generate positive results for our customers, shareholders and Parker team members.
Download your copy of the annual report here:
http://phx.corporate-ir.net/phoenix.zhtml?c=97464&p=irol-irhome
This document discusses lean project management principles. It defines lean systems and enterprises as emphasizing the prevention of waste and fostering continuous improvement. Lean thinking aims to deliver customer value with the least waste in the shortest time. Lean goals include improving quality and reducing waste, lead time, and costs. Lean principles specify value, identify value streams, emphasize flow, pull systems, and perfection. Lean project managers focus on eliminating waste in hand-offs between team members. Strong project chartering, seeing projects as value streams, and continuous learning are emphasized.
Parker Hannifin is a global leader in motion and control technologies that partners with customers to increase their productivity and profitability. Parker's Win Strategy has goals of premier customer service, financial performance, and profitable growth with strategies like delivery of quality parts on time, value-added services, and acquisitions and globalization. Parker has over 55,000 employees, 8,400 distributors worldwide, and serves over 417,000 customers across 9 technologies and 7 business groups operating 123 divisions and 299 plants worldwide.
The document provides a summary of Michael Zapytowski's experience and qualifications. He has over 15 years of experience in sales and project management for automotive, off-highway, specialty, and defense OEMs. Some of his responsibilities have included managing municipal police fleets, powertrain manufacturing accounts, and implementing oil analysis programs. He has consistently delivered increased sales and new business wins across various roles in industries such as hydraulics, electronics, and lubrication engineering.
L&J Associates is an executive outplacement firm that provides personalized career coaching and job searching support services to senior executives. Their services are tailored specifically for high-level executives and utilize an experienced consultant to develop a targeted search strategy through networking and skills evaluation. They help executives create personalized branding and execute a strategic job search plan to increase the chances of finding a new career opportunity.
This document discusses analyzing a company's resources and capabilities for strategic planning purposes. It outlines a framework for identifying a firm's key resources and capabilities, appraising their strategic importance and strength, exploring how they are linked, and developing strategy implications to exploit strengths and address weaknesses. Key points include assessing resources and capabilities in terms of their profit potential and sustainability of competitive advantage.
Speaker: Andrew Bargerstock
CPA, Associate Professor of Management,
Director of the MBA Program
B.A. Economics, Muhlenberg College
M.B.A., University of Pittsburgh
C.P.A., Pennsylvania
Ph.D., Maharishi University of Management
Andrew Bargerstock worked as an executive with a Fortune 500 company, established two successful businesses, and consulted with many companies including Allstate Insurance, BJC Health System, W.L. Gore & Associates, US Patent and Trademark Office, and Virginia Department of Social Services. He was one of two professors in the USA to be awarded the Lean Enterprise Institute's (LEI) 2009 Excellence in Lean Accounting Professor Award.
In fiscal year 2016 Parker team members implemented the new Win Strategy™ and delivered unprecedented financial performance during a global market downturn.
Momentum from the new Win Strategy has positioned Parker for another year of margin improvements and increased earnings as sales stabilize in fiscal year 2017.
Looking ahead, the powerful combination of Parker’s highly engaged people, unique motion and control capabilities and the new Win Strategy will generate positive results for our customers, shareholders and Parker team members.
Download your copy of the annual report here:
http://phx.corporate-ir.net/phoenix.zhtml?c=97464&p=irol-irhome
This document discusses lean project management principles. It defines lean systems and enterprises as emphasizing the prevention of waste and fostering continuous improvement. Lean thinking aims to deliver customer value with the least waste in the shortest time. Lean goals include improving quality and reducing waste, lead time, and costs. Lean principles specify value, identify value streams, emphasize flow, pull systems, and perfection. Lean project managers focus on eliminating waste in hand-offs between team members. Strong project chartering, seeing projects as value streams, and continuous learning are emphasized.
Parker Hannifin is a global leader in motion and control technologies that partners with customers to increase their productivity and profitability. Parker's Win Strategy has goals of premier customer service, financial performance, and profitable growth with strategies like delivery of quality parts on time, value-added services, and acquisitions and globalization. Parker has over 55,000 employees, 8,400 distributors worldwide, and serves over 417,000 customers across 9 technologies and 7 business groups operating 123 divisions and 299 plants worldwide.
The document provides a summary of Michael Zapytowski's experience and qualifications. He has over 15 years of experience in sales and project management for automotive, off-highway, specialty, and defense OEMs. Some of his responsibilities have included managing municipal police fleets, powertrain manufacturing accounts, and implementing oil analysis programs. He has consistently delivered increased sales and new business wins across various roles in industries such as hydraulics, electronics, and lubrication engineering.
L&J Associates is an executive outplacement firm that provides personalized career coaching and job searching support services to senior executives. Their services are tailored specifically for high-level executives and utilize an experienced consultant to develop a targeted search strategy through networking and skills evaluation. They help executives create personalized branding and execute a strategic job search plan to increase the chances of finding a new career opportunity.
This document discusses analyzing a company's resources and capabilities for strategic planning purposes. It outlines a framework for identifying a firm's key resources and capabilities, appraising their strategic importance and strength, exploring how they are linked, and developing strategy implications to exploit strengths and address weaknesses. Key points include assessing resources and capabilities in terms of their profit potential and sustainability of competitive advantage.
Ken Sanchez has over 20 years of experience in procurement and supply chain management. He has held various leadership roles at companies like American Express, Cold Stone Creamery, and Motorola. His experience spans categories such as technology, chemicals, food service, and manufacturing with a proven track record of cost savings and process improvements.
- Xerox was founded in 1906 and is headquartered in Norwalk, Connecticut. It has faced continuing problems under previous CEO Peter McColough, who failed to commercialize new technology and had misguided priorities.
- To succeed in the future, Xerox needs to focus on business process management, asset sales and cost cutting, following outside advisor recommendations, and clearly articulating its future plans and path to obtaining returns.
- Xerox can also improve by better integrating its marketing plan through defining its mission, setting objectives, developing strategy, and monitoring results. With the right changes, Xerox has the opportunity to address its weaknesses and challenges.
Parker Hannifin Corporation
http://parker.com
Business Overview
With annual sales of $14.3 billion in fiscal year 2018, Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than 100 years the company has engineered the success of its customers in a wide range of diversified industrial and aerospace markets. Strong competitive advantages, a clear strategy and goals, consistent execution and performance, and many opportunities for growth, have allowed the company to consistently deliver strong shareholder returns. Parker has increased its annual dividends paid to shareholders for 62 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index.
Michael Zapytowski is a sales engineer and senior account manager with over 15 years of experience selling to automotive and off-highway OEMs. He has skills in systems integration, powertrains, electronics, software, and more. Some of his past roles include account manager positions with Semper Fi Synthetics, Electrical Components International, Daido Metal USA, Johnson Electric, Parker Hannifin, and Saint-Gobain Performance Plastics. He has successfully grown sales and won new business from customers such as Ford, GM, Caterpillar, and the U.S. Army.
Xerox was founded in 1906 and is headquartered in Norwalk, Connecticut. It has faced challenges in recent years due to failing to commercialize new technologies and misguided CEO priorities. To succeed, Xerox needs to focus on business process management, asset sales, cost cutting, and following advisor recommendations. It also needs to better integrate its marketing plan by defining its mission, setting objectives, analyzing its situation, developing strategy, and monitoring results. With the right focus and leadership, Xerox has the opportunity to be fixed.
This presentations to AAPA\'s Materials Management Conference looks at the state of SC in the aviation industry, It focuses on why talent management must become a core activity on a par with corporate finance and strategic planning. Talent must be managed rigorously and globally, with plans that look out to at least three to five years.
Case Study - VR Brand Extension & LaunchAndrew Wert
Veeder-Root developed a new above ground gas vapor leak monitoring system in response to stricter air quality standards in California. They executed a multi-pronged strategy including branding the new product as an extension of their underground leak detection systems, quantifying the value proposition, educating regulators and the industry, and incentivizing sales channels, to establish themselves as the trusted solution provider and capture over 83% of the new market. This contributed to a 12% increase in sales and 500 basis point increase in market share.
This document provides information about sponsoring an event called PEX Week hosted by PEX Network. It discusses the benefits of sponsorship, including access to senior decision makers from major companies. PEX Week is described as the largest annual gathering of process professionals and a chance for sponsors to meet prospects and current partners. Details are given about the audience breakdown by region, job function, company size and industry to help sponsors understand the potential customers that will be attending.
Hamir mahajan case work (nx power lite)Hamir Mahajan
The document discusses a potential acquisition of Topnotch Technologies by Bluesky International. It provides an executive summary of the valuation methods used, including discounted cash flow valuation of $165 million and market multiples valuation of $199 million. It then discusses the management structure and compensation structure changes that would result from the acquisition, including adding an ESOP and promoting internal staff. Potential synergies from the acquisition are also examined, such as increased market share and offering integration.
7th Cold Chain Distribution for PharmaceuticalsAbby Lombardi
This document provides information about the 7th Annual Cold Chain Distribution for Pharmaceuticals conference taking place from September 21-24, 2009 in Philadelphia, Pennsylvania. The conference will focus on partnerships, transportation processes, risk mitigation and temperature-controlled shipment of pharmaceutical products and supplies. Topics will include re-evaluating transportation and logistics strategies, ensuring regulatory compliance, establishing qualified shipping lanes and processes, and implementing effective "last mile" logistics. The conference will feature speakers from various pharmaceutical and logistics companies and government agencies. Pre-conference discussion forums and conference tracks will address issues such as cold chain program management, new refrigeration technologies, biological materials and clinical supplies shipping, and clinical logistics.
SPX provided guidance for 2009 in light of an uncertain global economic environment. It expects organic revenue to decline 5% but sees long-term growth of 4-6%. SPX will focus restructuring efforts in 2009, targeting $65M in actions to reduce its global workforce by around 10%. Guidance for 2009 EPS is $5.40-$5.80 and free cash flow is $230-$270M, assuming a continued global economic recession with 1% GDP growth.
The document provides an overview of DuPont's 2001 financial results and realignment into new business segments. It notes that in 2001, DuPont sold its Pharmaceuticals business to Bristol-Myers Squibb for $7.8 billion in cash, repositioned its Polyester business through various joint ventures and asset sales, and took additional steps to strengthen its technology position in displays through acquisitions. The document also outlines DuPont's new five Growth Platform business structure and explains that financial data from 2001 is presented under both the old and new reporting segments to help users understand the company's transformation.
- The document discusses a Forrester survey of 156 eCommerce leaders on their technology investments and challenges.
- Most retailers currently use home-grown or licensed on-premise solutions, but cloud solutions are gaining popularity among smaller retailers.
- Retailers have ambitious growth plans for global expansion and mobile, but have low confidence that their current solutions can scale to meet future needs.
- The survey aimed to understand challenges with current platforms and determine true total costs of maintaining eCommerce technologies.
Michael C. Jordan has over 30 years of experience in executive level sales, business development, and management positions. He has consistently exceeded goals and delivered strong financial results across multiple industries. Most recently, he implemented a world-wide distribution strategy and grew revenues as Consultant/Sr. Vice President of Strategy and Business Development at LS Research.
Parker Hannifin's 2004 annual report summarizes the company's strong financial performance and execution of its WinStrategy. Net sales reached a record $7 billion, up 11% from 2003, while net income grew 76%. The WinStrategy focused on financial performance initiatives and is driving increased profitability. Parker is also expanding globally and winning new business through its ability to provide total motion control systems solutions to its 400,000 customers. The company's investments in innovative technologies are generating new profitable business opportunities.
Hexane Manufacturing Unit | Project Report 2023: Machinery, Raw Materials, In...IMARC Group
The report provides a complete roadmap for setting up an hexane manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc.
TransDigm GROUP INC. FINANCIAL ANALYSIS1TransDigm Group (NYS.docxedwardmarivel
TransDigm GROUP INC. FINANCIAL ANALYSIS 1
TransDigm Group (NYSE: TDG)
Company Profile and Leadership
Formed in 2003, when Warburg Pincus acquired TransDigm Inc. – a company established in 1993, TransDigm Group Inc. is a global leader in the production of aerospace components, systems and sub-systems.
The members of the Board of Directors of TransDigm Group,(NYSE: TDG), are: W. Nicholas Howley – Chief Executive Officer and Chairman of the Board of Directors, William Dries – Retired Senior Vice President and Chief Financial Officer at EnPro Industries, Merv Dunn – Chief Executive Officer of Commercial Vehicle Group, Michael Graff – Managing Director of Warburg Pincus LLC and a General Partner of Warburg Pincus & Co., Sean P. Hennessy – Senior Vice President, Finance and Chief Financial Officer, The Sherwin- Williams Company, Douglas W. Peacock – Past Chairman of the Board of Directors and Chief Executive Officer of TransDigm Inc., Robert J. Small – Managing Director of Berkshire Partners LLC and John Staer – Chief Executive Officer of Satair A/S. The key members of the Management of the firm are: W. Nicholas Howley – Chief Executive Officer and Chairman of the Board of Directors, Raymond F. Laubenthal – President and Chief Operating Officer, Gregory Rufus – Executive Vice President, Chief Financial Officer and Secretary, Robert S. Henderson – Executive Vice President, Bernt G. Iversen, II – Executive Vice President in-charge of Business Development and Mergers & Acquisitions.
Products / Services, Major Customers, Major Suppliers
TransDigm Group Inc.’s major products are commercial and military aircraft components in three major segments of: Airframe, Power and Control, and Non-Aviation. These include: include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and lighting and control technology. Most of TransDigm Group revenue is from after-market sales realized throughout the useful life of aircrafts – mostly a period of 30 years. The major suppliers of the firm’s inputs are leading providers of engineered industrial products like The Sherwin- Williams Company and EnPro Industries. The major customers include the leading aircraft manufacturing firms such as Boeing, as well as the U.S. Military.
Historical Stock Price
TDG’s annual stock price has been on a bullish up-run since 2009, due to a myriad of reasons. First, the Group has a unique positioning that provides a high barrier of entry to the competition and this provides it with sustainable high cash flows, sa ...
The document summarizes the current state of the supply chain for hydraulic fracturing services, proppant, guar gum, and water in the Eagle Ford shale play. It finds that constraints have eased as the supply chain has caught up to increased demand from rising rig counts. Specifically, there is now an oversupply of fracturing services and proppant. Guar gum and water availability have also improved. The document forecasts that utilization rates for fracturing services will continue to fall through 2013, driving down prices across the major US plays including the Eagle Ford.
The document provides an overview of Winnebago Industries' leadership team and an upcoming investor presentation. It lists the members of the corporate leadership team and includes a forward-looking statement disclaimer. Additionally, it provides a high-level company overview, outlines Winnebago's strategic priorities, and summarizes its strategic transformation and operational profile.
This document discusses Arthur D. Little (ADL), a global management consulting firm. It outlines ADL's situational analysis including its enterprise risk management process. Some key risks identified are technical obsolescence, political instability, customer demands, regulatory compliance, and competitors in the market. The document recommends strategies to address these risks such as training, certifications, insurance, diversification, and leveraging its brand and intellectual capital. It also categorizes risks as technical, external, organizational, and operational and provides examples of how positive risks can be exploited, shared, or enhanced.
This document is BB&T Corporation's 2005 annual report. It provides financial highlights for 2005, noting that net income increased 6.1% to $1.654 billion and diluted earnings per share grew 7.1% to $3.00. Operating earnings rose 7.2% to $1.674 billion. Cash basis operating earnings, which exclude intangible assets and purchase accounting adjustments, increased 7.1% to $1.763 billion. The report discusses BB&T's strong loan, deposit and balance sheet growth in 2005 and notes the bank hired additional revenue producers and implemented strategies to boost organic account growth.
BB&T reported 2008 net income of $1.5 billion and earnings per common share of $2.71. For the fourth quarter of 2008, net income totaled $305 million and net income available to common shareholders totaled $284 million, or $.51 per diluted common share. For the full year 2008, BB&T's net income available to common shareholders was $1.50 billion compared to $1.73 billion earned in 2007, a decrease of 13.6%.
Ken Sanchez has over 20 years of experience in procurement and supply chain management. He has held various leadership roles at companies like American Express, Cold Stone Creamery, and Motorola. His experience spans categories such as technology, chemicals, food service, and manufacturing with a proven track record of cost savings and process improvements.
- Xerox was founded in 1906 and is headquartered in Norwalk, Connecticut. It has faced continuing problems under previous CEO Peter McColough, who failed to commercialize new technology and had misguided priorities.
- To succeed in the future, Xerox needs to focus on business process management, asset sales and cost cutting, following outside advisor recommendations, and clearly articulating its future plans and path to obtaining returns.
- Xerox can also improve by better integrating its marketing plan through defining its mission, setting objectives, developing strategy, and monitoring results. With the right changes, Xerox has the opportunity to address its weaknesses and challenges.
Parker Hannifin Corporation
http://parker.com
Business Overview
With annual sales of $14.3 billion in fiscal year 2018, Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than 100 years the company has engineered the success of its customers in a wide range of diversified industrial and aerospace markets. Strong competitive advantages, a clear strategy and goals, consistent execution and performance, and many opportunities for growth, have allowed the company to consistently deliver strong shareholder returns. Parker has increased its annual dividends paid to shareholders for 62 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index.
Michael Zapytowski is a sales engineer and senior account manager with over 15 years of experience selling to automotive and off-highway OEMs. He has skills in systems integration, powertrains, electronics, software, and more. Some of his past roles include account manager positions with Semper Fi Synthetics, Electrical Components International, Daido Metal USA, Johnson Electric, Parker Hannifin, and Saint-Gobain Performance Plastics. He has successfully grown sales and won new business from customers such as Ford, GM, Caterpillar, and the U.S. Army.
Xerox was founded in 1906 and is headquartered in Norwalk, Connecticut. It has faced challenges in recent years due to failing to commercialize new technologies and misguided CEO priorities. To succeed, Xerox needs to focus on business process management, asset sales, cost cutting, and following advisor recommendations. It also needs to better integrate its marketing plan by defining its mission, setting objectives, analyzing its situation, developing strategy, and monitoring results. With the right focus and leadership, Xerox has the opportunity to be fixed.
This presentations to AAPA\'s Materials Management Conference looks at the state of SC in the aviation industry, It focuses on why talent management must become a core activity on a par with corporate finance and strategic planning. Talent must be managed rigorously and globally, with plans that look out to at least three to five years.
Case Study - VR Brand Extension & LaunchAndrew Wert
Veeder-Root developed a new above ground gas vapor leak monitoring system in response to stricter air quality standards in California. They executed a multi-pronged strategy including branding the new product as an extension of their underground leak detection systems, quantifying the value proposition, educating regulators and the industry, and incentivizing sales channels, to establish themselves as the trusted solution provider and capture over 83% of the new market. This contributed to a 12% increase in sales and 500 basis point increase in market share.
This document provides information about sponsoring an event called PEX Week hosted by PEX Network. It discusses the benefits of sponsorship, including access to senior decision makers from major companies. PEX Week is described as the largest annual gathering of process professionals and a chance for sponsors to meet prospects and current partners. Details are given about the audience breakdown by region, job function, company size and industry to help sponsors understand the potential customers that will be attending.
Hamir mahajan case work (nx power lite)Hamir Mahajan
The document discusses a potential acquisition of Topnotch Technologies by Bluesky International. It provides an executive summary of the valuation methods used, including discounted cash flow valuation of $165 million and market multiples valuation of $199 million. It then discusses the management structure and compensation structure changes that would result from the acquisition, including adding an ESOP and promoting internal staff. Potential synergies from the acquisition are also examined, such as increased market share and offering integration.
7th Cold Chain Distribution for PharmaceuticalsAbby Lombardi
This document provides information about the 7th Annual Cold Chain Distribution for Pharmaceuticals conference taking place from September 21-24, 2009 in Philadelphia, Pennsylvania. The conference will focus on partnerships, transportation processes, risk mitigation and temperature-controlled shipment of pharmaceutical products and supplies. Topics will include re-evaluating transportation and logistics strategies, ensuring regulatory compliance, establishing qualified shipping lanes and processes, and implementing effective "last mile" logistics. The conference will feature speakers from various pharmaceutical and logistics companies and government agencies. Pre-conference discussion forums and conference tracks will address issues such as cold chain program management, new refrigeration technologies, biological materials and clinical supplies shipping, and clinical logistics.
SPX provided guidance for 2009 in light of an uncertain global economic environment. It expects organic revenue to decline 5% but sees long-term growth of 4-6%. SPX will focus restructuring efforts in 2009, targeting $65M in actions to reduce its global workforce by around 10%. Guidance for 2009 EPS is $5.40-$5.80 and free cash flow is $230-$270M, assuming a continued global economic recession with 1% GDP growth.
The document provides an overview of DuPont's 2001 financial results and realignment into new business segments. It notes that in 2001, DuPont sold its Pharmaceuticals business to Bristol-Myers Squibb for $7.8 billion in cash, repositioned its Polyester business through various joint ventures and asset sales, and took additional steps to strengthen its technology position in displays through acquisitions. The document also outlines DuPont's new five Growth Platform business structure and explains that financial data from 2001 is presented under both the old and new reporting segments to help users understand the company's transformation.
- The document discusses a Forrester survey of 156 eCommerce leaders on their technology investments and challenges.
- Most retailers currently use home-grown or licensed on-premise solutions, but cloud solutions are gaining popularity among smaller retailers.
- Retailers have ambitious growth plans for global expansion and mobile, but have low confidence that their current solutions can scale to meet future needs.
- The survey aimed to understand challenges with current platforms and determine true total costs of maintaining eCommerce technologies.
Michael C. Jordan has over 30 years of experience in executive level sales, business development, and management positions. He has consistently exceeded goals and delivered strong financial results across multiple industries. Most recently, he implemented a world-wide distribution strategy and grew revenues as Consultant/Sr. Vice President of Strategy and Business Development at LS Research.
Parker Hannifin's 2004 annual report summarizes the company's strong financial performance and execution of its WinStrategy. Net sales reached a record $7 billion, up 11% from 2003, while net income grew 76%. The WinStrategy focused on financial performance initiatives and is driving increased profitability. Parker is also expanding globally and winning new business through its ability to provide total motion control systems solutions to its 400,000 customers. The company's investments in innovative technologies are generating new profitable business opportunities.
Hexane Manufacturing Unit | Project Report 2023: Machinery, Raw Materials, In...IMARC Group
The report provides a complete roadmap for setting up an hexane manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc.
TransDigm GROUP INC. FINANCIAL ANALYSIS1TransDigm Group (NYS.docxedwardmarivel
TransDigm GROUP INC. FINANCIAL ANALYSIS 1
TransDigm Group (NYSE: TDG)
Company Profile and Leadership
Formed in 2003, when Warburg Pincus acquired TransDigm Inc. – a company established in 1993, TransDigm Group Inc. is a global leader in the production of aerospace components, systems and sub-systems.
The members of the Board of Directors of TransDigm Group,(NYSE: TDG), are: W. Nicholas Howley – Chief Executive Officer and Chairman of the Board of Directors, William Dries – Retired Senior Vice President and Chief Financial Officer at EnPro Industries, Merv Dunn – Chief Executive Officer of Commercial Vehicle Group, Michael Graff – Managing Director of Warburg Pincus LLC and a General Partner of Warburg Pincus & Co., Sean P. Hennessy – Senior Vice President, Finance and Chief Financial Officer, The Sherwin- Williams Company, Douglas W. Peacock – Past Chairman of the Board of Directors and Chief Executive Officer of TransDigm Inc., Robert J. Small – Managing Director of Berkshire Partners LLC and John Staer – Chief Executive Officer of Satair A/S. The key members of the Management of the firm are: W. Nicholas Howley – Chief Executive Officer and Chairman of the Board of Directors, Raymond F. Laubenthal – President and Chief Operating Officer, Gregory Rufus – Executive Vice President, Chief Financial Officer and Secretary, Robert S. Henderson – Executive Vice President, Bernt G. Iversen, II – Executive Vice President in-charge of Business Development and Mergers & Acquisitions.
Products / Services, Major Customers, Major Suppliers
TransDigm Group Inc.’s major products are commercial and military aircraft components in three major segments of: Airframe, Power and Control, and Non-Aviation. These include: include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and lighting and control technology. Most of TransDigm Group revenue is from after-market sales realized throughout the useful life of aircrafts – mostly a period of 30 years. The major suppliers of the firm’s inputs are leading providers of engineered industrial products like The Sherwin- Williams Company and EnPro Industries. The major customers include the leading aircraft manufacturing firms such as Boeing, as well as the U.S. Military.
Historical Stock Price
TDG’s annual stock price has been on a bullish up-run since 2009, due to a myriad of reasons. First, the Group has a unique positioning that provides a high barrier of entry to the competition and this provides it with sustainable high cash flows, sa ...
The document summarizes the current state of the supply chain for hydraulic fracturing services, proppant, guar gum, and water in the Eagle Ford shale play. It finds that constraints have eased as the supply chain has caught up to increased demand from rising rig counts. Specifically, there is now an oversupply of fracturing services and proppant. Guar gum and water availability have also improved. The document forecasts that utilization rates for fracturing services will continue to fall through 2013, driving down prices across the major US plays including the Eagle Ford.
The document provides an overview of Winnebago Industries' leadership team and an upcoming investor presentation. It lists the members of the corporate leadership team and includes a forward-looking statement disclaimer. Additionally, it provides a high-level company overview, outlines Winnebago's strategic priorities, and summarizes its strategic transformation and operational profile.
This document discusses Arthur D. Little (ADL), a global management consulting firm. It outlines ADL's situational analysis including its enterprise risk management process. Some key risks identified are technical obsolescence, political instability, customer demands, regulatory compliance, and competitors in the market. The document recommends strategies to address these risks such as training, certifications, insurance, diversification, and leveraging its brand and intellectual capital. It also categorizes risks as technical, external, organizational, and operational and provides examples of how positive risks can be exploited, shared, or enhanced.
This document is BB&T Corporation's 2005 annual report. It provides financial highlights for 2005, noting that net income increased 6.1% to $1.654 billion and diluted earnings per share grew 7.1% to $3.00. Operating earnings rose 7.2% to $1.674 billion. Cash basis operating earnings, which exclude intangible assets and purchase accounting adjustments, increased 7.1% to $1.763 billion. The report discusses BB&T's strong loan, deposit and balance sheet growth in 2005 and notes the bank hired additional revenue producers and implemented strategies to boost organic account growth.
BB&T reported 2008 net income of $1.5 billion and earnings per common share of $2.71. For the fourth quarter of 2008, net income totaled $305 million and net income available to common shareholders totaled $284 million, or $.51 per diluted common share. For the full year 2008, BB&T's net income available to common shareholders was $1.50 billion compared to $1.73 billion earned in 2007, a decrease of 13.6%.
- BB&T Corporation reported lower operating earnings for the fourth quarter of 2008 compared to the same period in 2007. Operating earnings available to common shareholders decreased 41.4% to $243 million.
- Net interest income increased 14.2% to $1,132 million due to higher interest income, but this was more than offset by a large increase in the provision for credit losses of $344 million.
- Returns and profitability ratios declined from the prior year, with the return on average common equity decreasing to 7.26% and the efficiency ratio worsening to 51.9%.
This document is a proxy statement from Carolina Power & Light Company (CP&L) informing shareholders about the upcoming annual shareholder meeting on May 14, 2008. The meeting will address the election of two Class I directors and the ratification of Deloitte & Touche LLP as the company's independent registered public accounting firm. Shareholders are encouraged to vote by proxy card or telephone in order to have their votes counted if they do not attend the meeting in person.
This document is a proxy statement from Progress Energy, Inc. inviting shareholders to attend the company's 2008 Annual Meeting of Shareholders on May 14, 2008. The matters to be voted on include the election of directors, ratification of the selection of the independent registered public accounting firm, and a shareholder proposal regarding executive compensation. Shareholders are urged to vote by proxy card, telephone, or online in order to have their votes counted if they do not attend the meeting in person.
The document summarizes Bill Johnson's presentation at the Morgan Stanley Global Electricity & Energy Conference on April 3, 2008. The presentation outlines Progress Energy's strategy to secure its energy future through operational excellence, growth prospects like rate base expansion, and maintaining constructive regulation. It highlights Progress Energy's two regulated utilities with strong growth prospects and discusses key strategic issues like US climate change policy and needed new baseload capacity like the proposed Levy County nuclear project.
Bill Johnson, Chairman, CEO, and President of Progress Energy, presented at the company's annual shareholder meeting. He discussed Progress Energy's history of over 100 years in business, highlights from 2007 including financial and operational achievements as well as sustainability recognition, strategic focus on its two electric utility subsidiaries serving North Carolina and Florida. Johnson also outlined Progress Energy's balanced strategy to address issues like climate change, demand growth, and costs while maintaining reliability and affordability. He discussed governance practices and executive compensation policies.
Progress Energy reported first quarter 2008 results. Earnings were lower than expected due to milder than normal weather and lower customer growth and usage, particularly in Florida. The company reaffirmed its 2008 earnings guidance. Several regulatory filings and projects remained on track. Key nuclear, natural gas, and transmission projects were progressing to increase capacity and meet renewable energy goals. While economic conditions had softened retail demand, cost management and additional wholesale contracts were expected to offset impacts.
The document summarizes Progress Energy's Q2 2008 earnings call. It discusses the company reaffirming its 2008 ongoing earnings guidance of $3.05 per share despite challenges in Florida. It also provides updates on recent court rulings impacting emissions regulations, the Levy County nuclear project, and major capital expenditure projects. Progress Energy's CFO discusses the company's quarterly and year-to-date financial performance and steps taken to offset weakness in Florida retail markets through increased wholesale contracts.
Bill Johnson, CEO of Progress Energy, outlined the company's strategy to secure its energy future at a Lehman Brothers energy conference. Progress Energy operates as two high-performing electric utilities serving North Carolina and Florida. The company is focused on achieving annual EPS growth of 4-5% through rate base expansion and pursuing a balanced solution to meet energy needs and address climate change, while maintaining excellent operational and financial performance. A key part of this strategy is the proposed Levy Nuclear Project, a two-unit nuclear plant in Florida that would help reduce costs and carbon emissions.
This document summarizes a presentation given by Mark Mulhern, Senior Vice President and CFO of Progress Energy, at a Power & Gas Leaders Conference on September 24, 2008. The presentation discusses Progress Energy's strategy of securing its energy future through significant rate base growth, nuclear expansion projects, and maintaining a supportive regulatory environment. It provides an overview of Progress Energy's utilities in North Carolina and Florida, outlines major capital investment projects, and reviews the company's financial position and objectives to achieve steady earnings growth.
The document summarizes Progress Energy's Q3 2008 earnings call. It discusses ongoing earnings of $306M for Q3 2008, regulatory updates in the Carolinas and Florida, energy efficiency and alternative energy programs, and $7-8B in capital expenditures through 2013 for major generation projects. Cost controls have kept year-to-date O&M expenses flat compared to 2007 despite 2.5% reported growth. Customer growth has been positive but milder weather reduced retail usage. Guidance of $2.95-3.05 for 2008 ongoing earnings is maintained based on a trailing 12-month EPS of $2.91. Liquidity remains strong with $1.9B in available credit facilities and cash.
Progress Energy held a financial conference in Phoenix, Arizona on November 10-11, 2008. The conference focused on providing an overview of the company including its growth strategy and regulatory updates. Progress Energy is the largest regulated electric utility in the US with significant projected rate base growth through 2010 driven by investments in its regulated operations in North Carolina and Florida. Regulatory proceedings in both states approved various cost recovery filings which will support continued investment and earnings growth.
This document is a presentation by Bill Johnson, Chairman and CEO of Progress Energy, given at the EEI Financial Conference in Phoenix, AZ on November 11, 2008. The presentation provides an overview of Progress Energy, including its strategic focus on achieving long-term annual EPS growth of 4-5%, pursuing a balanced solution to secure the energy future, and sustaining financial strength during nuclear construction. It also discusses Progress Energy's regulated utilities, major capital projects, regulatory updates, and long-term financial objectives.
The document is a transcript from Progress Energy's 4Q 2008 earnings call. It discusses Progress Energy's financial results for 4Q and full year 2008, highlights achievements that position the company well for 2009, and reviews major capital projects and regulatory initiatives. Progress Energy affirmed its 2009 ongoing earnings guidance of $2.95 to $3.15 per share. The call also provided updates on Florida rate filings and the Levy Nuclear Project.
- Progress Energy reported financial results for the second quarter and first half of 2001. Total operating revenues increased $1.4 billion for the first half compared to the same period in 2000 due to the acquisition of Florida Power Corporation.
- Net income increased $73 million to $266 million for the first half, with earnings per share rising from $1.26 to $1.33. Earnings were positively impacted by the addition of Florida Power Corporation but faced higher interest charges and goodwill amortization from the acquisition.
- Operating revenues and energy sales increased across electric, natural gas, and diversified business segments. However, net income faced pressures from weather-related declines in electricity usage, higher operation and maintenance
This document provides unaudited consolidated interim financial information for Progress Energy, Inc. for the third quarter and first nine months of 2001 compared to the same periods in 2000. Some key highlights include:
- Revenues increased significantly from acquisitions completed in late 2000, including the addition of Florida Power Corporation.
- Operating income increased driven by customer growth, favorable weather, and acquisitions, partially offset by higher fuel and purchased power costs.
- Net income increased due to the addition of Florida Power Corporation and other acquisitions, partially offset by higher interest charges and goodwill amortization.
- Earnings per share increased to $1.77 and $3.12 for the quarter
Progress Energy reported earnings of $2.65 per share for 2001, meeting expectations. Earnings were positively impacted by its non-regulated businesses which offset the effects of mild weather and an industrial slowdown. It also received tax rulings for four synthetic fuel plants and reaffirmed its 2002 guidance of $3.90 to $4.10 per share.
progress energy 1Q 02 earnings releaseFinal_allfinance25
Progress Energy reported first quarter earnings per share of $0.62, and $0.77 excluding one-time items. A rate settlement in Florida contributed $0.10 per share in retroactive revenue. Progress Energy reaffirmed its 2002 EPS guidance of $3.90 to $4.10. Several factors including mild weather, economic conditions, and debt issuance impacted the year-over-year EPS difference of $0.11.
progress energy 2Q 02earnings release Finalfinance25
Progress Energy reported second quarter 2002 earnings per share of $0.56, or $0.83 excluding non-operating items. This was in line with guidance. Key highlights included reaching long-term rate agreements in Florida and North Carolina that stabilize rates through 2005 and 2007 respectively. For 2002, the company expects ongoing earnings between $3.90-$4.00 per share, within previous guidance despite industrial slowdowns impacting some regions.
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financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
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Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
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1. PARKER MANAGEMENT COMMITTEE: Dan Serbin, Vice President - Human Resources;
Tom Williams, Senior Vice President and Operating Officer; Jack Myslenski, Executive Vice
President - Sales, Marketing and Operations Support; Don Washkewicz, Chairman of the Board,
Chief Executive Officer and President; Tim Pistell, Executive Vice President - Finance and
Administration and Chief Financial Officer; Lee Banks, Senior Vice President and Operating Officer;
Bob Barker, Senior Vice President and Operating Officer and Aerospace Group President.
Parker Hannifin Corporation
6035 Parkland Boulevard
Cleveland, Ohio 44124-4141
216 896 3000
Product Information & Distributor Locations
North America:
1-800-C-PARKER (1 800 272 7537)
Europe:
00800-C-PARKER-H (0800 2727 5374)
GROUP PRESIDENTS & OFFICERS: Bob Bond, Fluid Connectors; Jeff Cullman, Hydraulics; Stock Information
Heinz Droxner, Seal; John Greco, Instrumentation; Tom Healy, Climate & Industrial Controls;
Ricardo Machado, Latin America; John Oelslager, Filtration; Roger Sherrard, Automation;
Joe Vicic, Asia Pacific.
New York Stock Exchange, ticker symbol: PH
On the Internet at: www.phstock.com
Worldwide Capabilities
Parker Hannifin is the world’s leading diversified
manufacturer of motion and control technologies
and systems. The company’s engineering expertise
spans the core motion technologies - electrome-
chanical, hydraulic and pneumatic - with a full
complement of fluid handling, filtration, sealing
and shielding, climate control, process control
and aerospace technologies. The company part-
ners with its customers to increase their
productivity and profitability.
See our capabilities online at: www.parker.com
Investor Contact Parker Hannifin Corporation
CORPORATE OFFICERS: John Dedinsky, Vice President - Global Supply Chain & Procurement; Pamela J. Huggins, Vice President & Treasurer 6035 Parkland Boulevard
Dana Dennis, Vice President & Controller; Bill Eline, Vice President - Chief Information Officer; 216 896 2240 Cleveland, Ohio 44124-4141
Bill Hoelting, Vice President - Tax; Pam Huggins, Vice President & Treasurer; Marwan Kashkoush, phuggins@parker.com 216 896 3000
Vice President - Worldwide Sales & Marketing; Craig Maxwell, Vice President - Technology & Innovation;
Media Contact
Tom Piraino, Vice President, General Counsel & Secretary.
Christopher M. Farage, Vice President -
Corporate Communications
216 896 2750
cfarage@parker.com
Parker Hannifin Corporation Annual Report 2007
Career Opportunities
The Premier Diversified Motion & Control Company
Search for job openings and apply online at:
www.parker.com/careers
3. This year, Parker achieved a major milestone by surpassing
$10 billion in revenues
for the first time in our history. What comes next promises
to be even more exciting, as we partner with our customers
around the world to increase their profitability. Because when
our customers succeed, we succeed.
1
4. The Year in Review
NET SALES NET INCOME CASH FLOWS FROM AVERAGE SALES/EMPLOYEE
OPERATING ACTIVITIES
Millions of Dollars Millions of Dollars Thousands of Dollars
Millions of Dollars
11,000 900 1,000 200
9,900 810 900 180
8,800 720 800 160
7,700 630 700 140
6,600 540 600 120
5,500 450 500 100
4,400 360 400 80
3,300 210 300 60
2,200 180 200 40
1,100 90 100 20
0 0 0 0
03 04 05 06 07 03 04 05 06 07 03 04 05 06 07 03 04 05 06 07
FOR THE YEARS ENDED JUNE 30, 2007 2006 2005
(in thousands, except per share data)
OPERATING DATA
Net sales $ 10,718,059 $ 9,385,888 $ 8,068,805
Gross profit 2,445,110 2,018,270 1,677,328
Net income 830,046 673,167 604,692
Net cash provided by operating activities 955,007 954,639 853,506
Net cash (used in) investing activities (579,761) (921,243) (565,383)
Net cash (used in) financing activities (378,529) (194,192) (137,538)
PER SHARE DATA
Diluted earnings per share $ 7.01 $ 5.57 $ 5.02
Dividends 1.04 .92 .78
Book value 40.71 35.46 28.14
RATIOS
Return on sales 7.7% 7.2% 7.5%
Return on average assets 10.0 9.0 9.3
Return on average equity 18.5 17.8 19.1
Debt to debt-equity 21.4 21.1 22.5
OTHER
Number of employees 57,338 57,073 50,019
2
5. Letter to Shareholders
By remaining focused on The Parker Win
Strategy goals of premier customer service,
financial performance and profitable growth,
Parker employees around the world again
delivered record results to shareholders,
surpassing the $10 billion revenue milestone
in the process.
Parker delivered record results in fiscal year 2007 by continuing
to do what we do best: partnering with customers to drive their
productivity and profitability. We are committed to our belief
that when our customers and distributors are successful, we will
be too. We’ve summed up what Parker stands for with a bold
new tagline: Engineering Your Success. It appears on the cover
of this year’s annual report and will soon appear in all of our
communication materials. Simply put, Engineering Your Success
is our promise to customers around the world.
To ensure that we remain the kind of enterprise capable of deliv-
ering on this promise, we’re using a proven tool: The Parker Win
Don Washkewicz, Chairman of the Board, Chief Executive Officer and President
Strategy. Launched in 2001, The Parker Win Strategy provides
the blueprint through which employees are engineering success
• Return on invested capital of 21.9 percent placed Parker
in every aspect of our organization.
among the top quartile of our peers.
Record Levels of Success • Parker’s stock price exceeded $100.00 a share on a pre-stock-
Fiscal year 2007 was a year of outstanding achievements: split basis.
• Sales reached $10.7 billion, an increase of 14.2 percent • The company also expanded and accelerated its share
over fiscal year 2006. Of the total growth amount, 5 percent repurchases.
was organic, 6 percent was from strategic acquisitions, and the
remainder was from foreign currency exchange rates. Profitable Global Growth
• Income from continuing operations increased 30 percent to a Each year, Parker aims to grow revenues by at least ten percent.
record $830.0 million compared with $638.3 million a year ago. We achieved that goal again this year through a balanced
• Before including the recent three-shares-for-two stock split, mix of organic growth and growth through acquisitions.
diluted earnings per share from continuing operations were
$7.01 compared to $5.28 a year ago.
Winovation, our program for developing innovative new prod-
• Net income as a percent of net sales reached an all-time ucts that customers want, continued to deliver breakthroughs:
record 7.7 percent.
• Data-carrying smart seals in sections of oil rig drilling rods
• Cash flow from operations reached a record $955.0 million help sense the likelihood of finding oil or gas at any given site
or 8.9 percent of sales.
faster. Initial market potential: $20 million.
• Parker’s annual dividend increased for the 51st consecutive
• Self cleaning, regenerative filtration systems that neutralize
year, one of the top five longest records of dividend increases
biological, nuclear and chemical contaminants. Initial
among the Standard & Poor’s 500.
market potential: $40 million.
• Since the end of the fiscal year, we increased our quarterly
• Microfluidic process controllers that control instruments
dividend paid to shareholders by more than 21 percent,
in applications ranging from airport security to disease
bringing our total quarterly dividend increase to more than
detection. Initial market potential: $50 million.
65 percent over the last three years.
3
6. Disciplined Strategic Acquisitions
The company also continued to invest wisely in
acquisitions that fit its motion and control technology
A-FILTER ARLON, Filtration, Sweden
portfolio.
ACAL AIR CONDITIONING & REFRIGERATION, Climate Control, UK
ACOFAB SAS, Sealing & Shielding, France
• Acofab in France, Rayco Technologies in Singapore and AIRTEK, Filtration, US
Tecknit in the U.S. dramatically strengthened our global CABETT SUBSEA, Fluid & Gas Handling, US
sealing and shielding platform. SERVICIOS METALCROM LIMITADA, Hydraulics, Chile
POWER COMPONENTS of MIDWEST INC., Hydraulics, US
• Cabett Subsea in the U.S and Rectus in Germany
RAYCO TECHNOLOGIES, Sealing & Shielding, Singapore
brought new technology and expanded distribution to
RECTUS AG, Fluid & Gas Handling, Germany
our fluid and gas handling offering.
SSD DRIVES INDIA, Electromechanical, India
• Important product and regional niches were filled in
TECKNIT, Sealing & Shielding, US
climate control, filtration and hydraulics.
No single company offers a more comprehensive family of
In addition, results from the acquisitions made a year ago
motion and control products than Parker. Increasingly, custom-
continue to improve as integration activities are completed.
ers are asking Parker to help engineer their success by combining
our products into complete systems. In China, for example,
Taken together, our efforts have reshaped the company.
our technologies are driving one of the largest marine dredge
Parker’s revenues and profits are now more balanced
systems ever constructed there. In the U.S., our climate control
geographically, as the accompanying chart illustrates. This
expertise is providing subsystems for geothermal heating and
makes the company’s overall performance less susceptible to
cooling units. Other examples include emission-reducing fan
regional economic downturns when they occur. At the same
drive systems for construction vehicles; flight, hydraulic, and
time, we’ve kept our roughly 50/50 strategic mix between
fuel control systems for nearly every plane flying today; and a full
OEM and MRO business. We continue to apply Parker
suite of life science solutions for anesthesia delivery, drug discov-
technologies in dozens of diverse markets.
ery, minimally invasive surgery and biomedical waste disposal.
FY 2001 FY 2007
Parker’s ultimate competitive advantage in serving customers
has been built over more than sixty years: our global network of
Climate
Climate
10% 12,000 distribution outlets that can provide our products nearly
9%
Aerospace Industrial anytime, anywhere. Our relationships with distributors have
Aerospace
16% North America
Industrial
20% never been stronger. Parker continues to give them the products,
38%
North America
services and training they need to grow their businesses and
49%
Industrial
Industrial ours. One of our fastest growing innovations, the ParkerStore,
International
International
22% provides distributors with a tool to reach the walk-in MRO
36%
or “industrial retail”
marketplace untapped
$6.0 Billion Revenues $10.7 Billion Revenues
by competitors.
Delivering Customer Success
In sum, we follow our customers around the world and do what
As the leader in the motion and control industry, Parker
it takes to engineer their success. Centralized country sales
strives to be our customers’ trusted partner. These relation-
offices, market-specific sales teams, on-site service centers,
ships are cultivated by listening closely to our customers and
online tools and inventory management programs are among
repeatedly providing them with value measured in real dol-
the many tools at our customers’ disposal. We believe that no
lars: saved time, reduced waste, gained efficiency, expanded
company in our industry is better than Parker at providing
output, and increased profitability.
customers with local engineering, local products and local service.
Customer trust is earned first by delivering quality products
Building Greater Performance
on-time. Parker’s performance level is among the best in class
The Win Strategy’s initiatives drive excellence on the
and allows us to win business when competitors fall short.
fundamentals of purchasing, manufacturing and pricing. While
Parker has already realized tremendous benefits from each of
these initiatives, it is clear that there is still much to be gained.
4
7. Parker’s strategic procurement initiative continues to deliver Parker’s future goals include:
millions of dollars in savings. We partner with key suppliers, • Continued #1 position in the global motion and
control market
rewarding them with larger orders and long term business in
• Compound revenue growth rate of greater than 10 percent
exchange for continuous supply chain improvements. These
• Top quartile return on invested capital among our peer group
agreements help us plan for and mitigate swings in the costs of
• Market share of 20 percent
raw materials.
• Continued dividend growth
• Technology leadership and a continuous flow of innovative
Lean Enterprise is the way we operate our company around
new products
the world. Tools such as standard work, value stream mapping,
visual controls and error proofing are used to meet objective,
What may be most exciting is that our target market potential
measurable goals. As these tools are applied, inventory levels
has greatly expanded. This year we completely reassessed our
and capital expenditures go down while productivity, quality and
market opportunities to account for the effects of recent
return on net assets improve. We continue to see especially
acquisitions and internal technology developments. Our true
dramatic results as we introduce lean to recently acquired compa-
opportunity is now more than double previous assessments.
nies. Lean is also taking hold in the office as areas such as finance,
legal, and marketing reduce waste and improve productivity.
We feel it will be hard for our competitors to match the
continued success of Parker because of our technologies, our
In terms of pricing, Parker has become adept at capturing the
diversification, our structure and our people. The need for Parker
full value we provide our customers. Our ability to do just that
products and technologies continues to grow. Wherever the stan-
was profiled in a front page Wall Street Journal article earlier
dard of living is increasing, Parker is there to satisfy basic needs
this year.
in the areas of energy, food and water, healthcare, infrastructure
and the environment. With each succeeding year, we are proving
These efforts are yielding results. Most telling is Parker’s margin
that our success is predictable and repeatable. Management
improvement outside of North America. A dollar of sales inter-
incentives are aligned to maximize shareholder value. The future
nationally today yields nearly the same level of profit as the rest
is bright. On behalf of our employees, I thank you, our share-
of our industrial business. Regional downturns should no longer
holders, for giving us the opportunity to engineer your success.
affect Parker as dramatically as they once did.
Sincerely,
Empowered Employees Drive Success
At Parker, we trust that the people closest to the work know best
how to improve their processes. The company’s decentralized
structure allows employees to be entrepreneurial, reacting as
Donald E. Washkewicz
they see fit to sudden or emerging opportunities to grow
Chairman, CEO and President
the business.
We continue to develop a diversified group of leaders at all levels
of the organization. Perhaps the best example of our bench
strength: the seamless management transition following the
retirement of President and Chief Operating Officer Nick Vande
Steeg. Proven leaders Lee Banks, Bob Barker and Tom Williams
were each named Senior Vice President and Operating Officer
to build on what’s already been done and to lead Parker into
the future.
More Success to Come
Fiscal year 2007 was a great year at Parker. Our stock price
reached record levels. Total shareholder return has outpaced
the S&P 500 and S&P Industrial indices over three, five and
ten years. Yet, employees throughout the organization insist
▲ The Win Strategy gives clarity to our people and operations around the
“the best is yet to come.” I know they are right.
world. Our vision of being the #1 motion and control company rests on the
strategy’s pillars of premier customer service, financial performance and
profitable growth.
5
8. Customer Success
Premier customer service always comes first at Parker. We face and knowing the markets they serve. Our market-focused
collaborate with our customers to engineer solutions that sales forces provide relevant expertise to customers.
improve their profitability and reduce complexity. We look
at their entire operation to integrate systems that add long- Custom products are typical, subsystems are practical,
term value. and engineered systems celebrated. We are in the business
of accommodating our customers. If our standard offering
Parker’s global presence supports on-time delivery and doesn’t meet the needs of a particular application, our
on-site services that speed customers’ operations. We pro- engineers work side by side with the customer until the
vide audits that target specific operating costs and advise problem is solved. Parker provides motion and control
customers of ways to reduce their spend. We help to improve technologies and systems, bringing together all of our
customers’ performance by listening to the challenges they specialized operations.
6
9. ▲ Refrigerated Large Capacity Dryers
Custom large capacity dryers for compressed air are tested and approved
by China Steel Corporation at Parker’s Domnick Hunter Hiross facility in
S. Angelo di Piove, Italy.
Flight Controls for Light Jets Protecting Patients’ Health Demanding Performance Significant Energy Savings
Subsystem contracts are increasingly Parker and French customer Anios filter Herrenknecht, of Germany, relies on Aluminum manufacturers in Dubai
awarded to Parker based on our water used for surgical hand washing Parker to plumb its utility tunneling and and Russia reduce operating costs by
reputation for quality. and showering of immuno-compro- geothermal exploration equipment. using less compressed air with Parker
mised patients to minimize risk of cylinders.
hospital acquired illnesses.
7
10. ▲ Infrastructure Construction and Maintenance
Here in Shanghai, China and around the world, we make it possible to
connect with people, whether it be through building infrastructure or
enabling telecommunications.
ParkerStore Retail Locations Optimizing Wind Power Local Customer Service Safe Alternate Energy
Our distributor-owned ParkerStores serve In Denmark, leading wind turbine An acquired Chilean manufacturer Nuclear energy is re-emerging with
the vast, global MRO market. Thousands of companies use Parker hydraulics increased Parker’s market share in the millions of dollars of Parker products
products are available in The Parker Book, exclusively. region’s mining industry. supporting safe operation.
an MRO specific catalog.
8
11. Global Success
Parker continues to expand its global footprint through worldwide. Customers are able to take advantage of on-site
strategic acquisitions and organic growth. We’ve achieved a service and engineering expertise, as well as inventory
geographic sales balance unparalleled in the company’s management programs.
history. We’ve organized our operations to achieve compa-
rable margins anywhere in the world. Parker’s global reach By establishing operations close to our customers, we’re
enables us to serve global OEMs with local manufacturing and enjoying growth in every region of the world. Ongoing
around-the-clock customer service. improvements in the standard of living worldwide mean the
demand for our technologies should steadily increase. We add
Our loyal, 12,000-location strong, distribution network gives new talent and capabilities with each company that joins us in
customers personalized access to Parker’s capabilities our quest to remain the global leader in motion and control.
9
12. ▲ Consumer Entertainment Market
Parker helps flat panel television manufacturers keep up with growing
Asian consumer demand by providing gantry systems that position
panels during the fabrication process.
Flexible Drives Smart Syringes Public Safety Intelligent Pumps
This AC adjustable speed drive features Our fluidic dispensing systems enable Contaminants are eliminated from In aerospace applications, our pumps
a modular design, easing installation and precise liquid metering for the drug municipal water systems with the help adjust flow and pressure in response to
maintenance. discovery and life science markets. of Parker’s instant monitoring systems. system demand for optimum efficiency.
10
13. Technology Success Parker’s systematic approach to innovation, called
At Parker, we employ our motion and control technologies
Winovation, gives our engineers the framework to develop
to improve the quality of life for people everywhere.
solutions customers want. Winovation promotes the
We team with our customers to find new ways to develop
development of breakthrough products and ensures their
infrastructure, save energy, reduce pollution, improve
ultimate success. We strive to deliver technology our
safety, and promote health.
customers need instead of just filling out product lines.
Our intelligent systems communicate with operators,
Our access to world markets and available cash makes us an
providing information to support reliable performance. Our
attractive partner for emerging technology companies. We
integration of electronics allows us to create smart products
develop partnerships with start-up companies to benefit our
and systems that sense, diagnose and respond automatically,
customers with progressive technology.
eliminating human error. We integrate functions that help to
reduce our customers’ down-time and improve their productivity.
11
14. Operational Success
Our Win Strategy focuses on customer service, financial provide in our products. We continue to leverage
performance and profitable growth, and provides consistency strategic contracts to maintain a healthy supply chain.
throughout Parker’s decentralized organization. Our 57,000 Still, we have much more to accomplish by executing each
employees have achieved productivity gains, improved initiative in the Win Strategy.
on-time delivery, and decreased inventory levels.
Parker has recently implemented programs to support
We’ve optimized our manufacturing globally, with fewer innovative products on both ends of our Winovation
plants and higher utilization. Our efforts have put Parker’s process: Winmap, our marketing-focused program; and
international operating margins nearly on par with those in Winvalue, our sales-based program. These new processes
North America. We’ve educated many of our suppliers, dis- will work well to complement the Win Strategy initiatives,
tributors and customers on the advantages of lean operations leveraging the strength of Parker with well thought-out plans
as well. Our pricing model now captures all of the value we for the application of our technology.
12
15. ▲ Kaarst, Germany Sales Company
Our strategically located sales companies pull Parker systems together for
customers, bringing our global capabilities to local markets with local people.
Lean Enterprise Procurement Improvements Immediate Response Phastite Fitting
Our manufacturing operations are in- Parker worked with a supplier to In the aerial lift market, we deliver This virtually indestructible fitting
creasingly productive, and we’re using reduce the weight of this pump by products direct to the assembly line emerged from our Winovation process,
lean methodologies to streamline our 30 percent with a redesign of its and enjoy sole source agreements with which guides strategic product
functional business processes. iron castings. leading global providers. development.
13
16. Financial Success
Total Shareholder Return Our Return on Net Assets Goal
Annual Equivalent
S&P 500 S&P 500 Industrials Parker
25%
L
OA
RONA G
20%
20%
07
06
% of Return on Sales
17%
05
15%
04
10% 03
11%
5%
0%
5 Year
3 Year 10 Year
Years Ending June 30, 2007 Net Assets/Sales
Total shareholder return assumes stock price appreciation and reinvestment Continued Above-the-Line Performance in 2007 – Return on Net Assets is
of dividends. In FY2007, Parker total shareholder return was 28 percent, or a common metric throughout the company, providing a standard for how
35 percent higher than the S&P 500. efficiently and productively each operating unit employs the average dollar
invested in assets. To reach Parkerʼs internally established benchmark, the
RONA Goal line, operations must successfully balance investments in assets
with profitable sales growth. Since the launch of the Win Strategy, Parker
has steadily moved toward the goal, reaching the line in 2005 and eclipsing
it in 2006 and 2007.
Over the last six years, Parkerʼs Win Strategy has driven the companyʼs financial performance to a higher level. As
our employees continue to execute our Win Strategy, we will continue to operate from a position of financial strength,
enabling us to invest in strategic new opportunities, grow our business, and provide strong returns to our shareholders.
Parker Return on Invested Capital Versus Peers* Peers Parker
36.0%
34.5%
26.4%
24.4%
PARKER 21.9%
20.8%
20.7%
20.5%
20.1%
18.9%
18.8%
Strong ROIC Performance in 2007 – Our ROIC
17.2%
continues to outpace our weighted average cost
16.9%
of capital, creating value for our shareholders.
16.9%
16.3%
13.1%
12.9%
12.1%
11.4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 05
Return on Invested Capital %
*Return on Invested Capital = [Pretax income from Continuing Operations + Interest Expense] / [Average Debt + Average Equity]. Parkerʼs ROIC peers include
(identified by stock symbol) CAT, CBE, CMI, DE, DHR, DOV, EMR, ETN, FLS, GR, HON, IR, ITT, ITW, PLL, ROK, SPW, and TXT. Peer data is from most recent 10-K filings.
14
17. FINANCIAL REVIEW
Consolidated Statements of Income and Comprehensive Income page 22 Consolidated Statement of Cash Flows page 25
Business Segment Information page 23 Notes to Consolidated Financial Statements page 26
Consolidated Balance Sheet page 24 Eleven-Year Financial Summary page 38
RETURN ON
AVERAGE
FIVE-YEAR
AVERAGE
RETURN DIVIDEND
ASSETS/
COMPOUND
EQUITY
ON SALES PAYOUT RATIO
SALES
SALES GROWTH
Goal: 15.0%
Goal: 6.5% Goal: 25.0%
Goal: $.80
Goal: 10%
15.0% 9.0% $1.20 24.0% 75.0%
10.0% 6.0% $.80 16.0% 50.0%
5.0% 3.0% $.40 8.0% 25.0%
03 04 05 06 07 03 04 05 06 07 03 04 05 06 07 03 04 05 06 07 03 04 05 06 07
MANAGEMENT’S DISCUSSION AND ANALYSIS
Overview The ISM index at the end of fiscal 2007 was 56.0 and the most recent PMI for
the Eurozone countries was 54.1. With respect to the aerospace market, aircraft miles
The Company is a leading worldwide diversified manufacturer of motion control
flown and revenue passenger miles in 2007 have shown moderate improvement over
products and systems, providing precision engineered solutions for a wide variety
comparable fiscal 2006 levels and the Company expects continued improvement in
of commercial, mobile, industrial and aerospace markets.
fiscal 2008. The Company anticipates that Department of Defense spending in fiscal
2008 will be about 2 percent higher than the fiscal 2007 level.
The Company’s order rates provide a near-term perspective of the Company’s outlook
particularly when viewed in the context of prior and future order rates. The Company
The Company also believes that there is a high correlation between interest rates
has historically published its order rates on a monthly basis. However, beginning in
and Industrial manufacturing activity. The Federal Reserve did not change the federal
fiscal 2008, the Company will publish order rates on a quarterly basis in order to
funds rate during fiscal 2007 but did raise the federal funds rate eight times during
more effectively characterize the longer term trends of the Company’s markets. The
fiscal 2006. Increases in the federal funds rate typically have a negative impact on
lead time between the time an order is received and revenue is realized can range
industrial production thereby lowering future order rates while decreases in the federal
from one day to 12 weeks for commercial, mobile and industrial orders and from one
funds rate typically have the opposite effect.
day to 18 months for aerospace orders. The Company believes the leading economic
indicators of these markets that have a strong correlation to the Company’s future The Company’s major opportunities for growth are as follows:
order rates are as follows:
Leverage the Company’s broad product line with customers desiring to
•
Institute of Supply Management (ISM) index of manufacturing activity with consolidate their vendor base and outsource system engineering,
•
respect to North American commercial, mobile and industrial markets,
Marketing systems solutions for customer applications,
•
Purchasing Managers Index (PMI) on manufacturing activity with respect to
•
Expand the Company’s business presence outside of North America,
•
most International commercial, mobile and industrial markets, and
New product introductions, including those resulting from the Company’s
•
Aircraft miles flown and revenue passenger miles for commercial aerospace
•
innovation initiatives,
markets and Department of Defense spending for military aerospace markets.
Completing strategic acquisitions in a consolidating motion and control
•
An ISM and PMI index above 50 indicates that the manufacturing economy is
industry, and
expanding resulting in the expectation that the Company’s order rates in the
commercial, mobile and industrial markets should be positive year-over-year. Expanding the Company’s vast distribution network.
•
Parker Hannifin Corporation annual report 2006
2007
15
18. MANAGEMENT’S DISCUSSION & ANALYSIS
The financial condition of the Company remains strong as evidenced by the continued in 2007 were 14.2 percent higher than 2006. The increase in sales in
NET SALES
generation of substantial cash flows from operating activities, which were $955 2007 primarily reflects higher volume experienced across all Segments. Acquisitions
million or 8.9 percent of sales in fiscal 2007, a debt to debt-equity ratio of 21.4 completed within the last 12 months contributed about 45 percent of the net sales
percent, ample borrowing capabilities and strong short-term credit ratings. increase. The effect of currency rate changes increased net sales by approximately
$241 million.
Acquisition opportunities remain available to the Company within its target markets.
During fiscal 2007, the Company completed 11 acquisitions whose aggregate Net sales in 2006 were 16.3 percent higher than 2005. The increase in sales in
incremental annual revenues were approximately $260 million. The Company 2006 primarily reflects higher volume experienced across all Segments. Acquisitions
believes that future financial results will reflect the benefit of a fast and efficient completed within the last 12 months contributed about one-half of the net sales
integration of the companies recently acquired. Acquisitions will continue to be increase. The effect of currency rate changes reduced net sales in 2006 by
considered from time to time to the extent there is a strong strategic fit, while at approximately $38 million.
the same time, maintaining the Company’s strong financial position. The Company
During 2007, the Company experienced strong business conditions in several of
will also continue to assess the strategic fit of its existing businesses and initiate
the markets of the Industrial International businesses and the Aerospace Segment.
efforts to divest businesses that are not considered to be a good long-term fit
Softer business conditions were experienced in a number of markets of the Industrial
for the Company. Future business divestitures could have a negative effect on
North America businesses and the Climate & Industrial Controls Segment. For 2008,
the Company’s results of operations.
the Company expects the strong business conditions experienced in the Industrial
The Company routinely strives to improve customer service levels and manage International businesses and the Aerospace Segment to continue while business
changes in raw material prices and expenses related to employee health and welfare conditions in a number of the markets in the Industrial North American operations
benefits. The Company is currently focused on maintaining its financial strength and Climate & Industrial Controls Segment will continue to be soft.
through the current Industrial North American slowdown, especially in the auto-
was higher in 2007 primarily due to a combination of the
GROSS PROFIT MARGIN
motive, heavy-duty truck and construction markets. The Company has in place a
increase in sales and the effects of the Company’s financial performance initiatives,
number of strategic financial performance initiatives relating to growth and margin
especially in the Industrial International businesses. Current-year acquisitions, not
improvement in order to meet these challenges, including strategic procurement,
yet fully integrated, negatively affected the current-year gross margin. The higher
strategic pricing, lean enterprise, product innovation and business realignments.
margins in 2006 were primarily due to a combination of the increase in sales as
The discussion below is structured to separately discuss each of the financial well as the effects of the Company’s financial performance initiatives, especially
statements presented on pages 22 to 25. All year references are to fiscal years. in the areas of lean manufacturing and strategic procurement.
increased 18.3 percent in
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Discussion of Consolidated Statement of Income 2007 primarily due to the higher sales volume, as well as higher expenses related
to research and development, incentive compensation and professional fees.
The Consolidated Statement of Income summarizes the Company’s operating
performance over the last three fiscal years.
INTEREST EXPENSE increased in 2007 primarily due to higher average debt out-
standing as well as higher interest rates, primarily on commercial paper borrowings.
(millions) 2006 2005
2007
Interest expense increased in 2006 as a result of higher average debt outstanding
Net sales $ 9,386 $ 8,069
$10,718
resulting from an increase in borrowings used to fund 2006 acquisition activity.
Gross profit margin 21.5% 20.8%
22.8%
Selling, general and
includes plant and equipment disposals,
(GAIN) LOSS ON DISPOSAL OF ASSETS
administrative expenses $ 1,037 $ 860
$ 1,227
divestitures of businesses and miscellaneous asset adjustments.
Interest expense 76 67
83
Other (income) expense, net (9) 8
(7) (millions) 2006 2005
2007
(Gain) loss on disposal
Plant and equipment disposals $(1) $3
$(11)
of assets 15 4
(17)
Divestitures 10
(6)
Effective tax rate from
Asset adjustments 6 1
continuing operations 29.1% 27.8%
28.4%
Income from The amount for divestitures in 2007 primarily relates to the final accounting for a
continuing operations $ 638 $ 533
$ 830
business divested in 2002. The amount for divestitures in 2006 primarily relates to
Income from
the sale of the Thermoplastics division.
continuing operations,
as a percent of sales 6.8% 6.6%
7.7%
was lower in 2007 primarily
EFFECTIVE TAX RATE FROM CONTINUING OPERATIONS
Discontinued operations $ 35 $ 72
due to a higher amount of research and development tax credits received in 2007
Net income $ 673 $ 605
$ 830
as compared to 2006. The effective tax rate in 2006 was higher primarily due to a
lower level of research and development tax credits as compared to 2005, partially
offset by the effect of tax planning initiatives. In August 2007, a new German tax
rate was enacted. The effect of the new tax rate will be accounted for as a discrete
tax item in the first quarter of fiscal 2008 resulting in a tax benefit of approximately
$7 million.
Parker Hannifin Corporation annual report 2007
16