Parker Hannifin FY 4Q17 Earnings Call Notes

Thomas L. Williams – Parker-Hannifin Corp.

Positive, neutral, negative markets

“Positives are aerospace, agriculture, construction, distribution, forestry, general industrial, heavy-duty truck, lawn and turf, mining, oil and gas, refrigeration and air-conditioning, semicon and telecom. So, as I said, it’s a long list but that’s a great thing to have a long list of positives. On the neutral side is automotive, power gen, rail and life sciences, and really the only market that we see as negative year-over-year is marine. Now, one comment I want to make is context to overall that end market, that’s how we are doing in the end markets. I’m not trying to make a comment about the whole end markets, kind of what it’s doing. It’s just our projection of Parker within that end market.”

Feel pretty good about the global economy right now

“I feel pretty good about the global economy right now. We’ve already experienced, as you’ve seen in our orders the last couple of quarters, this is pretty good activity right now and we look forward to continue. And the splits kind of is what drove the second half. But we feel very good. I mean, if you look across the regions, this is a great environment for Parker right now.”

China continued to do very strong

” China continued to do very strong, mid-teen growth in the quarter and virtually every end market as you get go down the list, being positive. And the Asia team in general across – in addition to China, we’ve got every country in positive territory, every country growing. And Asia was the first region for us that turned and had a terrific year for us last year and it looks like it’ll be another strong year as well.”

Lee Banks

Some modest restock taking place

” On the distribution level, I would say there is some modest restock taking place. There’s been a surge in activity and I have North America mostly in mind when I make that comment. And then on the OE side, I would say modest but it’s pretty much pull-through demand, the best we could tell at this point in time.”