Parker-Hannifin Corporation Business Report FY ended Jun. 2009-2015
|(in million USD)|
|FY ended Jun. 30, 2015||FY ended Jun. 30, 2014||Rate of Change (%)||Factors|
|Sales by segment|
|Diversified Industrial segment||10,457.1||10,981.4||(4.8)||2)|
1) Net Sales
-Net sales for the fiscal year ended in June 30, 2015 decreased by 3.8% from the previous year to USD 12,711.7 million. The negative effect of currency rate changes decreased sales by approximately USD 547 million. Excluding the effect of currency rate changes, net sales remained approximately level compared to the previous year.
2) Diversified Industrial Sales
-During the fiscal year ended in June 30, 2015, sales for the Diversified Industrial Segment decreased by 4.8% to USD 10,457.1 million. Sales for the segment's North American operations remained relatively flat. Despite negative effects from currency rate changes, the increased demand from end-users in the car and truck markets offset these losses. Sales from the segment's international operations decreased by 10.3% from the previous year due primarily to currency rate changes.
-In October 2012, the Company divested its automotive air conditioning portion of its Mobile Climate Systems Division to ContiTech AG. This acquisition includes the plants listed below where the Company manufactures hose and tube assemblies, accumulators, receiver dryers and oil coolant assemblies for the passenger car and light truck markets:
- Monterrey, Mexico
- Montemorelos, Mexico
- Chomutov, the Czech Republic
- Chonan, South Korea
- Wuxi, Jiansu Province, China
-This transaction does not include the Parker portion of the business that sells these same products for air conditioning applications or hose products in the heavy truck, agricultural, and construction equipment end markets.
-In March 2015, the Company's Tube Fittings Division expanded its Seal-Lok O-ring face seal tube fitting line. Seal-Lok for compressed natural gas (CNG) provides reliable fuel conveyance in natural gas applications using an elastomeric seal compound. The compound improves ozone resistance and supports wider temperature range requirements. It is also certified for on-vehicle CNG applications under NGV 3.1, ECER 110, and ISO 15500. (From a press release on March 25, 2015)
-In 2012, the Company announced that it has completed its tender offer to purchase the remaining outstanding shares in TAIYO, LTD., a majority owned subsidiary of the Company, which is headquartered in Osaka, Japan. The tender offer, which was formally made by Parker Hannifin Japan Holdings GK, resulted in the Company owning 97.82% of the outstanding shares of TAIYO. The total consideration for the tendered shares was JPY 5.5 billion (approximately USD 70 million). The Company has been the majority shareholder in TAIYO since June 2006 and owned 56.49 percent of the outstanding shares in TAIYO prior to the tender offer. TAIYO has annual sales of approximately JPY 17.3 billion (approximately USD 215 million) and develops and manufactures a broad range of motion and control products. TAIYO will remain part of the Company's Global Hydraulics Group. (From a press release on March 15, 2012)
-In December 2008, the Company acquired Detroit Plasticos e Metais S/A (Detroit) of Brazil, a manufacturer of fittings, valves, manifolds, and thermoplastic tubing. Its sales in fiscal year 2007 were approximately USD 17 million. The acquired company will become part of the Company's Fluid Connectors business in Brazil. (From a press release on December 1, 2008)
-In October 2008, the Company acquired Legris SA. Legris, headquartered in Rennes, France, is a manufacturer of fluid circuit components and systems. In 2007, Legris recorded revenues of EUR 233 million. Legris sales will be recorded within the Company's global Fluid Connectors group.
-In October 2008, the Company acquired Origa Group. Origa is a manufacturer of rodless pneumatic actuators, electric actuators, FRLs (filter regulator lubricator), pneumatic cylinders, and valves. The Group has major operations in Filderstadt, Germany; Wiener Neustadt, Austria; and Glendale Heights, Illinois, U.S. Origa will be a division of the Company's Automation Group.
-In September 2008, the Company announced that it acquired Lingk & Sturzebecher ("L&S") in Germany. L&S is a manufacturer of light weight carbon fiber high pressure cylinders and actuators including those based on composite technologies, for aerospace, mobile and industrial markets. In the fiscal year of 2007, L&S achieved approximately EUR 7.6 million (approximately USD 11.2 million) in sales. L&S will become part of the Company's hydraulic technology business. (From a press release on September 4, 2008)
-In November 2014, the Company announced that Miami-Dade County in Florida, U.S., placed their third order of Autocar E3 hybrid refuse trucks. The third order consisted of 29 new hybrid trucks, bringing the county's fleet to a total of 64 trucks. The Autocar E3 trucks feature the Company's RunWise Advanced Series Hybrid Drive System which helps capture 71% of a vehicle's lost braking energy. This allows each truck to save up to 4,300 gallons of fuel per year. (From a press release on November 19, 2014)
-In 2009, the Company announced that it will supply its new hydraulic hybrid drive train systems to Daimler Trucks North America LLC (DTNA). The new systems will be shipped to Freightliner Custom Chassis Corporation, a DTNA subsidiary, and incorporated into 638 hybrid and alternative fuel vehicles used in delivery vehicle models by United Parcel Service (UPS). (From a press release on October 16, 2009)
|(in million USD)|
|FY ended Jun. 30, 2015||FY ended Jun. 30, 2014||FY ended Jun. 30, 2013|
CLEANDiesel filtration products
-In December, the Company combined the extensive fuel filtration expertise of its Racor and Velcon filtration divisions to develop and launch the new CLEANDiesel product line. The core products included in the launch are: CLEANDiesel Integrated Particulate Monitor (IPM) laser-based particle detector modules, CLEANDiesel Filtration Skid (DFS) fuel contaminant control systems, and CLEANDiesel FBO versatile housings. The CLEANDiesel fuel filtration products meet the published cleanliness specifications required by engine OEM's such as Caterpillar and Cummins and can help diesel engines meet EPA Tier 4 emissions standards. (From a press release on December 9, 2014)
Products shown at the American Public Transportation Association (APTA) Expo
Bus door actuators
-The Company presented two bus door actuators at the APTA Expo held in October 2014 in Houston, Texas, U.S. The modular electrohydraulic actuator removes the need for compressed air used in door actuation, thus extending the compressor's life. An integrated electropneumatic actuator will also be presented, which features integrated obstruction detection. The integrated actuator can be retrofitted to existing door systems, and requires less labor to manufacture. (From a press release on October 6, 2014)
GreenMAX Diesel Fuel Filter Water Separator
-The Company presented its GreenMAX Diesel Fuel Filter Water Separator at the APTA Expo held in October 2014 in Houston, Texas, U.S. The GreenMAX filter features technology that reuses warm engine fuel for on-demand fuel heat transfer in cold weather operations. Other features include a standard water-in-fuel sensor, a clear bowl for visual quality checking, and a self-venting drain. (From a press release on October 6, 2014)
General purpose electronic controller
-The Company presented its VMM1615 General Purpose Electronic Controller at the APTA Expo held in October 2014 in Houston, Texas, U.S. The VMM1615 controller has on-board diagnostic and status LEDs, which simplify the troubleshooting process. The controller also features 16 inputs, 15 outputs, two CAN Bus/J1939 communication ports, and can support steady state direct current voltages of up to 32 V. (From a press release on October 6, 2014)
Integrated touchscreen display cluster
-The Company presented an integrated touchscreen display cluster at the APTA Expo held in October 2014 in Houston, Texas, U.S. The DPS70 display cluster has an integrated 7" color LCD touchscreen with multiple modes of operation. Integrated video inputs reduce display requirements thus lower visual congestion during passenger loading. The DPS70 also has built-in access to vehicle performance data to assist in vehicle diagnostics and servicing. (From a press release on October 6, 2014)
Fan cooling systems
-The Company presented two fan cooling systems at the APTA Expo held in October 2014 in Houston, Texas, U.S. Both the Parker Transit Bus E-Fan Cooling System and the Parker Transit Bus Variable Hydraulic Fan Cooling System feature improved fuel efficiency over fixed displacement hydraulic fan drives. The E-Fan system does so by optimizing engine temperature through zone cooling, while the Variable Hydraulic Fan does so by keeping the fan speed independent of the engine speed. (From a press release on October 6, 2014)
RunWise hydraulic hybrid technology
-In 2010, the Company has developed several hydraulic hybrid technologies that improve the performance of refuse and delivery vehicles to levels that exceed proposed new U.S. fuel efficiency and emissions standards. Parker's RunWise series hydraulic hybrid technology is capable of reducing fuel use and emissions by as much as 50%. Developed with the support of the U.S. Environmental Protection Agency (EPA), the technology is already in use on refuse vehicles in three South Florida communities. United Parcel Service (UPS) and FedEx have become the first companies to order a variation on the technology for use on delivery vehicles scheduled to be on the road in 2011. The Company is already developing further advancements in the technology for use on a bus platform that is targeting a 45% reduction in fuel use over average diesel powertrains and which would be more than double the fuel reduction achieved with hybrid electric systems. (From a press release on November 22, 2010)
|(in million USD)|
|FY ended Jun. 30, 2015||FY ended Jun. 30, 2014||FY ended Jun. 30, 2013|
Investments outside U.S.
-In 2013, the Company inaugurated its new manufacturing facility at Chennai, India. With an investment of INR 100 crores (approximately USD 18.7 million), the new facility is built on a 10-acre plot in Mahindra World City. The Company has completed the first phase of the project, with the facility spanning 166,000 square feet, and has plans to further expand the facility by 100,000 square feet in the second phase. The new facility will manufacture broad range of products and systems for segments such as automotive, off-highway mobile, telecom, oil and gas, mining, and others. The Chennai facility targets the employment of 300 people in the next two to three years. With this facility and acquisitions, Parker Hannifin India plans to double their revenues within the next five years. (From a press release on January 9, 2013)