Record cash flows also provide capacity for organic and acquisitive growth
CLEVELAND, Aug. 16 /PRNewswire-FirstCall/ -- Parker Hannifin
Corporation (NYSE: PH), the global leader in motion and control
technologies, today announced that its Board of Directors has authorized a
$500 million accelerated share repurchase, a 21.2 percent increase in its
quarterly cash dividend, and a 3-shares-for-2 stock split.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO )
The stock split will be effected in the form of a dividend. One
additional share will be issued on October 1, 2007 for each two shares of
Parker common stock held by shareholders of record as of the close of
business on September 17, 2007. The company determined that cash will be
paid to shareholders in lieu of any fractional shares. Parker common stock
will begin trading at the split adjusted price on October 2, 2007.
In addition, the Board approved a 21.2 percent increase in its regular
quarterly cash dividend to 31.5 cents per share of common stock on a
pre-split basis, payable September 7, 2007 to shareholders of record as of
August 27, 2007. This is Parker's 229th consecutive quarterly dividend and
equates to an annual distribution of approximately $146 million. Parker has
increased its annual dividends paid to shareholders for 51 consecutive
years, among the top five longest-running dividend-increase records in the
S&P 500 index.
The Board also authorized the accelerated repurchase of $500 million
worth of common stock. The company will initially repurchase shares of its
common stock from Morgan Stanley. Morgan Stanley will then purchase an
equivalent number of shares of Parker's common stock in the open market
over a period of up to four months, and at the end of that period,
additional shares may be delivered to the company based on the
volume-weighted average price of the company's common stock during the same
period. Repurchases will be funded using existing available credit, and the
shares will initially be held as treasury stock.
This authorization is in addition to the company's previously announced
share repurchase program, under which approximately 9.5 million shares
remain available for repurchase on a pre-split basis.
"These actions reflect Parker's ongoing commitment to improving our
shareholders' total return," said Chairman, CEO and President Don
Washkewicz. "Our strong cash flow is allowing us to accelerate the
deployment of cash to benefit our shareholders, and at the same time
maintain the capacity to continue to drive organic growth through
innovation and invest in strategic acquisitions. By executing Parker's Win
Strategy, our employees have enabled the company to achieve record
revenues, earnings and cash flow for the past four years in a row. Our
shareholders are benefiting from our sustained success. Going forward, we
see continued global demand for our motion and control technologies and
products. We're confident that our proven business model will continue to
deliver consistent profitable growth and generate high levels of cash
flow."
With annual sales exceeding $10 billion, Parker Hannifin is the world's
leading diversified manufacturer of motion and control technologies and
systems, providing precision-engineered solutions for a wide variety of
commercial, mobile, industrial and aerospace markets. The company employs
more than 57,000 people in 43 countries around the world. Parker has
increased its annual dividends paid to shareholders for 51 consecutive
years, among the top five longest-running dividend-increase records in the
S&P 500 index. For more information, visit the company's web site at
http://www.parker.com, or its investor information site at
http://www.phstock.com.
Forward-Looking Statements:
Forward-looking statements contained in this and other written and oral
reports are made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen uncertainties
and risks. All statements regarding future performance, earnings
projections, events or developments are forward-looking statements. It is
possible that the future performance and earnings projections of the
company and individual segments may differ materially from current
expectations, depending on economic conditions within both its industrial
and aerospace markets, and the company's ability to achieve and maintain
anticipated benefits associated with announced realignment activities,
strategic initiatives to improve operating margins, and growth and
innovation initiatives. A change in economic conditions in individual
markets may have a particularly volatile effect on segment results. Among
the other factors which may affect future performance are: the company's
ability to successfully complete the announced share repurchase, changes in
business relationships with and purchases by or from major customers or
suppliers, including delays or cancellations in shipments; uncertainties
surrounding timing, successful completion or integration of acquisitions;
threats associated with and efforts to combat terrorism; competitive market
conditions and resulting effects on sales and pricing; increases in
raw-material costs that cannot be recovered in product pricing; the
company's ability to manage costs related to employee retirement and health
care benefits and insurance; and global economic factors, including
manufacturing activity, air travel trends, currency exchange rates,
difficulties entering new markets and general economic conditions such as
inflation, interest rates and credit availability. The company makes these
statements as of the date of this disclosure, and undertakes no obligation
to update them.
SOURCE Parker Hannifin Corporation
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Related links:
http://www.phstock.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media, Christopher M. Farage, Vice President,
Corp. Communications, +1-216-896-2750, cfarage@parker.com, or
Financial Analysts, Pamela Huggins, Vice President -- Treasurer,
+1-216-896-2240, phuggins@parker.com, both of Parker Hannifin
Corporation
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