Parker-Hannifin Corporation Business Report up until FY ended June 30, 2008

Business Highlights

Recent Years


-On April 30, 2008, the Company acquired the remaining stake in its joint venture, Parker Seal de Mexico. It held a 49 percent stake in the 8.3 million USD revenue company prior to acquiring the remaining interest from multiple joint venture partners. The acquired operation will become part of Parker's Seal Group. The acquisition is part of its long term strategy to serve its customers who have operations in Mexico, and positions the Company to meet all of their sealing requirements in-country. (From a press release on May 12, 2008)

-In April 2008, the Company acquired Vansco Electronics, a specialist in the design and manufacture of electronic controls, displays and terminals, communication and operator interfaces, and sensors. Vansco facilities in Canada, the United States, Finland, Belgium, and the United Kingdom employ 1,005 people. Vansco will become a part of the global operations of its hydraulic technology business. (From a press release on Apr. 7, 2008)

-In November 2007, the Company announced that it acquired Kay Pneumatics Ltd., a manufacturer of pneumatic valves, cylinders and precision electro-pneumatic control systems for transportation, semiconductor, medical and general industrial markets. Known as kV Automation, Kay Pneumatics is headquartered in Milton Keynes, UK, and has operations in the United States, Spain, France, Netherlands, Thailand, China and United Arab Emirates and reported sales of approximately 43 million USD for the fiscal year ending April 30, 2007. kV Automation will operate within the Company's Automation Group.

-In August 2007, the Company announced the acquisition of the assets of Silver Cloud Manufacturing, a maker of electromagnetic and radio frequency interference shielding products and display filters for a variety of electronics applications. Silver Cloud, a Millville, NJ unit of Xymox Technologies Inc., employs 54 people and reached 8.3 million USD in revenues for the year ended June 30, 2007. Silver Cloud will operate as part of Parker's sealing and shielding business within the company's Industrial North America segment. Silver Cloud's unique lamination technology and anti-reflective chemistry knowledge are used to create products that are used in control panels, monitors, handhelds, voting booths, in-flight entertainment screens and medical devices. This acquisition offers potential synergies with the Tecknit acquisition the Company completed in 2006.

-In July 2007, the Company announced the acquisition of Mitos Technologies, Inc. Mitos manufactures fluid-handling products and systems designed specifically to meet the high purity requirements of the biotech industry, including tubing and hose, valves, pumps and molded components. Mitos had revenues of 5.5 million USD in 2006 and employs approximately 40 people at its headquarters in Phoenixville, PA. Terms of the deal were not disclosed. Mitos will operate within Parker's Industrial North America Segment. The company also sees significant synergies between Mitos and its other recent acquisitions such as Rectus Ag, Dominick Hunter, and Texloc & Page.

-In April 2007, the Company announced the acquisition of Rayco Technologies, an Asian elastomer and seal technology company with compounding, mixing and precision molding capabilities that serves several high-end markets. Revenues of the acquired business totaled approximately 26 million USD in 2006. Rayco employs approximately 500 people in Singapore and China, serving disk drive, electronics, medical, semiconductor, consumer and automotive markets.

-In April 2007, the Company announced the acquisition of Rectus AG, a leading manufacturer of quick disconnect couplings and related products for pneumatic, hydraulic, medical and chemical processing applications. Rectus employs approximately 380 people worldwide including its headquarters in Nussdorf, Germany. Rectus' revenues were approximately 115 million USD in 2006. Rectus will operate within the Industrial North America and Industrial International segments of the Company's global fluid connectors business.

-In December 2006, the Company announced the acquisition of Ingenieria y Servicios Metalcrom Limitada, a Chilean industrial and mobile hydraulic cylinder manufacturer and cylinder repair service provider. Revenues of the acquired business totaled approximately 2.2 million USD in 2005.


-In December 2005, the Company completed the divestiture of its Thermoplastics division.


R&D Expenditures

(in million USD)
  FY ended June 31, 2008
Overall 303.1

Technological Alliance

-In December 2007, the Company announced together with FedEx Ground, a unit of FedEx Corp., that they agreed to test a Class 6 vehicle employing hybrid hydraulic technology that seeks to improve fuel mileage by greater than 50 percent and significantly reduce engine emissions. The system captures, stores and deploys energy by recovering inertial energy and optimizing engine efficiency, using Parker hydraulic technology. A full suite of Parker hydraulic products, including specifically-designed and technologically-advanced pump/motors, hoses, fittings, valves, electronic controls, and Parker high efficiency accumulators are incorporated into the design. A working demo vehicle is projected to be available for FedEx Ground within the next 12 months. The Company expects the technology to have applications with other classes of vehicles.

Investment Activities

Capital Expenditures

(in million USD)
  FY ended June 31, 2008
Overall 280.3

Investments Outside USA

-In September 2007, the Company's Chomerics Asia Pacific division announced the opening of a new facility in Sriperumbudur near Chennai, India. Located adjacent to the 260 acre Special Economic Zone, the facility will enable Chomerics to better serve the rapidly growing Indian market. With nearly 1700 sq meters of manufacturing and office space, the plant will produce electromagnetic interference (EMI) shielded products to support local customers. Chomerics (Woburn, MA) is the first choice in EMI shielding and thermal management solutions for communications, computer, consumer, automotive, military, aerospace, and medical electronics markets.