8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 29, 2014

PARKER-HANNIFIN CORPORATION

(Exact Name of Registrant as Specified in Charter)

Ohio	34-0451060
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
6035 Parkland Boulevard, Cleveland, Ohio	44124-4141
(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code: (216) 896-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

• Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

• Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

• Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On April 29, 2014, Parker-Hannifin Corporation issued a press release and presented a Webcast announcing results of operations for the quarter ended March 31, 2014. A copy of the press release is furnished as Exhibit 99.1 to this report. A copy of the Webcast presentation is furnished as Exhibit 99.2 to this report.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits:

99.1    Press release issued by Parker-Hannifin Corporation, dated April 29, 2014.

99.2    Webcast presentation by Parker-Hannifin Corporation, dated April 29, 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	PARKER-HANNIFIN CORPORATION
	By: /s/ Jon P. Marten
	Jon P. Marten
	Executive Vice President - Finance &
	Administration and Chief Financial Officer
Date: April 29, 2014

EX-99.1

Exhibit 99.1    

For Release:    Immediately                    

Contact:	Media -
	Aidan Gormley -Director, Corporate Communications	216-896-3258
	aidan.gormley@parker.com
	Financial Analysts -
	Pamela Huggins, Vice President - Treasurer	216-896-2240
	phuggins@parker.com
Stock symbol:	PH - NYSE

Parker Reports Fiscal 2014 Third Quarter Sales, Net Income and Earnings per Share

• Strong operational quarter, restructuring proceeding ahead of plan

• Higher than anticipated restructuring expenses of $0.28 per diluted share in the quarter

• Earnings per diluted share were $1.60, or $1.88 excluding restructuring expenses

• Positive order growth continues with 7 percent increase

• Company increases full year adjusted earnings guidance midpoint to $6.50 per diluted share

CLEVELAND, April 29, 2014 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2014 third quarter ended March 31, 2014. Fiscal 2014 third quarter sales increased 2 percent to $3.36 billion compared with $3.31 billion in the same quarter a year ago. Adjusting for a previously announced joint venture, fiscal 2014 third quarter sales increased 3 percent. Fiscal 2014 third quarter net income was $242.5 million, or $1.60 earnings per diluted share and when adjusted for restructuring expenses, was $285.0 million, or $1.88 earnings per diluted share. Net income in the prior year quarter was $256.6 million or $1.68 earnings per diluted share. A reconciliation of as reported to adjusted sales, net income and earnings per diluted share is included with the financial tables accompanying this news release.

Cash flow from operations for the first nine months of fiscal 2014 was $817.5 million or 8.4 percent of sales compared with $718.8 million or 7.5 percent of sales in the prior year period. Excluding a discretionary contribution to the company’s pension plan of $75 million and the impact of restructuring initiatives of $15 million in fiscal 2014, cash flow from operations was 9.4 percent of sales.

“We are pleased to have delivered strong operating margins in the third quarter, particularly in our Diversified Industrial International businesses,” said Chairman, CEO and President, Don Washkewicz. “Our previously announced restructuring initiatives are proceeding ahead of plan, with $86 million in pretax expenses incurred fiscal year-to-date. In addition, the improved order growth trend is an encouraging sign for the remainder of this fiscal year.”

Segment Results

Diversified Industrial Segment: North American third quarter sales increased 1.9 percent to $1.46 billion, and operating income was $243.0 million compared with $224.5 million in the same period a year ago. International third quarter sales increased 4.4 percent to $1.36 billion, and operating income was $126.9 million compared with $158.2 million in the same period a year ago. International operating income in the third quarter adjusted for the impact of restructuring expenses was $186.4 million.

Aerospace Systems Segment: Compared to the same period a year ago, third quarter sales decreased 5.6 percent to $545.7 million, but increased 2 percent adjusting for the impact of the previously announced joint venture between Parker Aerospace and GE Aviation. Operating income was $64.0 million compared with $80.1 million in the same period a year ago, largely reflecting an unfavorable product mix.

Orders

Parker reported an increase of 7 percent in orders for the quarter ending March 31, 2014, compared with the same quarter a year ago. The company reported the following orders by business:

• Orders increased 6 percent in the Diversified Industrial North America businesses;

• Orders increased 5 percent in the Diversified Industrial International businesses; and

• Orders increased 16 percent in the Aerospace Systems segment on a rolling 12-month average basis.

Outlook

For the fiscal year ending June 30, 2014, the company has increased guidance for adjusted earnings per diluted share to the range of $6.40 to $6.60, or $6.50 at the midpoint. Fiscal 2014 adjusted earnings guidance includes increased restructuring expenses which are anticipated to be approximately $0.55 per diluted share, but does not include the gain associated with the previously announced joint venture and asset write downs recorded in the quarter ended December 31, 2013. Restructuring expenses were $0.28 per diluted share in the third quarter of fiscal 2014 and $0.40 per diluted share fiscal year-to-date.

Washkewicz added, “We have increased the midpoint of our guidance for fiscal year 2014 to reflect the impact of improved operating margins and positive order trends. Considering the progress we have made, we expect to close the year strong and be well positioned going into fiscal year 2015.”

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2014 third quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, on the company's investor information web site at www.phstock.com. To access the call, click on the "Live Webcast" link. From this link, users also may complete a pre-call system test and register for e-mail notification of future events and information available from Parker. A replay of the conference call will also be available at www.phstock.com for one year after the call.

With annual sales of $13 billion in fiscal year 2013, 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 mobile, industrial and aerospace markets. The company employs approximately 58,000 people in 49 countries around the world. Parker has increased its annual dividends paid to shareholders for 58 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company's website at www.parker.com, or its investor information website at www.phstock.com.

Note on Orders

Orders provide near-term perspective on the company's outlook, particularly when viewed in the context of prior and future quarterly order rates. However, orders are not in themselves an indication of future performance. All comparisons are at constant currency exchange rates, with the prior year restated to the current-year rates. All exclude acquisitions until they can be reflected in both the numerator and denominator. Aerospace comparisons are rolling 12-month average computations. The total Parker orders number is derived from a weighted average of the year-over-year quarterly percent change in orders for Diversified Industrial North America and Diversified Industrial International, and the year-over-year 12-month rolling average of orders for the Aerospace Systems segment.

Note on Non-GAAP Numbers

This press release contains references to (a) sales growth excluding the effects of the joint venture, (b) operating income, net income and earnings per diluted share without the effect of restructuring expenses, (c) forecasted earnings per diluted share without the effect of a gain associated with a joint venture and asset write downs, and (d) cash flow excluding discretionary contributions to the company’s pension plan and the impact of restructuring. The effects of a joint venture, asset write downs, restructuring expenses and pension plan contributions are removed to allow investors and the company to meaningfully evaluate changes in sales, operating income, net income, earnings per diluted share, and cash flow on a comparable basis from period to period.

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, including its individual segments, may differ materially from current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the company's ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives.

A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance. Among other factors which may affect future performance are: changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments, disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; the ability to realize anticipated benefits of the consolidation of the Climate and Industrial Controls Group; threats associated with and efforts to combat terrorism; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; 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 insurance and employee retirement and health care benefits; and global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability. The company makes these statements as of the date of this disclosure, and undertakes no obligation to update them unless otherwise required by law.

###

PARKER HANNIFIN CORPORATION - MARCH 31, 2014										Exhibit 99.1
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)	Three Months Ended March 31,						Nine Months Ended March 31,
(Dollars in thousands except per share amounts)	2014			2013			2014			2013
Net sales	$	3,358,406		$	3,307,041		$	9,690,556		$	9,587,471
Cost of sales	2,605,893			2,569,189			7,502,273			7,468,608
Gross profit	752,513			737,852			2,188,283			2,118,863
Selling, general and administrative expenses	407,241			379,690			1,212,807			1,141,912
Goodwill and intangible asset impairment	—			—			188,870			—
Interest expense	20,594			23,050			62,403			70,775
Other (income), net	(4,812		)	(3,439		)	(424,693		)	(31,062		)
Income before income taxes	329,490			338,551			1,148,896			937,238
Income taxes	86,972			81,959			408,654			259,584
Net income	242,518			256,592			740,242			677,654
Less: Noncontrolling interests	112			32			232			391
Net income attributable to common shareholders	$	242,406		$	256,560		$	740,010		$	677,263
Earnings per share attributable to common shareholders:
Basic earnings per share	$	1.63		$	1.72		$	4.96		$	4.54
Diluted earnings per share	$	1.60		$	1.68		$	4.88		$	4.46
Average shares outstanding during period - Basic	149,039,529			149,287,628			149,143,478			149,191,583
Average shares outstanding during period - Diluted	151,739,617			152,360,612			151,562,276			151,853,522
Cash dividends per common share	$	0.48		$	0.43		$	1.38		$	1.25
RECONCILIATION OF NET INCOME AND EARNINGS PER DILUTED SHARE TO ADJUSTED NET INCOME AND EARNINGS PER DILUTED SHARE
Net income	$	242,518		$	256,592		$	740,242		$	677,654
Adjustments:
Restructuring charges	42,516			1,205			60,830			5,791
Adjusted net income	$	285,034		$	257,797		$	801,072		$	683,445
Earnings per diluted share	$	1.60		$	1.68		$	4.88		$	4.46
Adjustments:
Restructuring charges	0.28			0.01			0.40			0.04
Adjusted earnings per diluted share	$	1.88		$	1.69		$	5.28		$	4.50

PARKER HANNIFIN CORPORATION - MARCH 31, 2014								Exhibit 99.1
BUSINESS SEGMENT INFORMATION BY INDUSTRY
(Unaudited)	Three Months Ended March 31,				Nine Months Ended March 31,
(Dollars in thousands)	2014		2013		2014			2013
Net sales
Diversified Industrial:
North America	$	1,455,212	$	1,428,430	$	4,168,489		$	4,171,089
International	1,357,513		1,300,585		3,905,159			3,768,617
Aerospace Systems	545,681		578,026		1,616,908			1,647,765
Total	$	3,358,406	$	3,307,041	$	9,690,556		$	9,587,471
Segment operating income
Diversified Industrial:
North America	$	242,998	$	224,487	$	677,824		$	658,993
International	126,933		158,194		434,541			439,839
Aerospace Systems	63,974		80,080		166,306			194,150
Total segment operating income	433,905		462,761		1,278,671			1,292,982
Corporate general and administrative expenses	38,377		41,410		132,406			126,578
Income before interest expense and other expense	395,528		421,351		1,146,265			1,166,404
Interest expense	20,594		23,050		62,403			70,775
Other expense (income)	45,444		59,750		(65,034		)	158,391
Income before income taxes	$	329,490	$	338,551	$	1,148,896		$	937,238
RECONCILIATION OF NET SALES TO ADJUSTED NET SALES
	Three Months Ended March 31,				%
	2014		2013		Change
Total net sales	$	3,358,406	$	3,307,041	1.6		%
Adjustments:
Sales related to GE joint venture	—		43,731
Adjusted total net sales	$	3,358,406	$	3,263,310	2.9		%
Aerospace Systems net sales	$	545,681	$	578,026	(5.6		)%
Adjustments:
Sales related to GE joint venture	—		43,731
Adjusted Aerospace Systems net sales	$	545,681	$	534,295	2.1		%

			Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2014
CONSOLIDATED BALANCE SHEET
(Unaudited)	March 31,		June 30,		March 31,
(Dollars in thousands)	2014		2013		2013
Assets
Current assets:
Cash and cash equivalents	$	2,095,989	$	1,781,412	$	1,677,319
Accounts receivable, net	2,098,063		2,062,745		2,017,126
Inventories	1,448,989		1,377,405		1,473,072
Prepaid expenses	183,119		182,669		136,268
Deferred income taxes	122,840		126,955		134,724
Total current assets	5,949,000		5,531,186		5,438,509
Plant and equipment, net	1,827,980		1,808,240		1,829,715
Goodwill	3,164,175		3,223,515		3,229,827
Intangible assets, net	1,210,967		1,290,499		1,313,990
Other assets	950,236		687,458		859,731
Total assets	$	13,102,358	$	12,540,898	$	12,671,772
Liabilities and equity
Current liabilities:
Notes payable	$	1,078,846	$	1,333,826	$	1,527,696
Accounts payable	1,200,466		1,156,002		1,162,125
Accrued liabilities	933,077		894,296		838,376
Accrued domestic and foreign taxes	154,792		136,079		120,352
Total current liabilities	3,367,181		3,520,203		3,648,549
Long-term debt	1,508,611		1,495,960		1,496,026
Pensions and other postretirement benefits	1,306,667		1,372,437		1,693,048
Deferred income taxes	111,508		102,920		127,159
Other liabilities	354,158		307,897		294,582
Shareholders' equity	6,450,996		5,738,426		5,409,058
Noncontrolling interests	3,237		3,055		3,350
Total liabilities and equity	$	13,102,358	$	12,540,898	$	12,671,772

				Exhibit 99.1
PARKER HANNIFIN CORPORATION - MARCH 31, 2014
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)	Nine Months Ended March 31,
(Dollars in thousands)	2014			2013
Cash flows from operating activities:
Net income	$	740,242		$	677,654
Depreciation and amortization	253,150			250,574
Stock incentive plan compensation	84,647			65,516
Goodwill and intangible asset impairment	188,870			—
Gain on sale of deconsolidation of subsidiary	(412,612		)	—
Gain on sale of businesses	—			(13,313		)
Net change in receivables, inventories, and trade payables	(52,953		)	(13,743		)
Net change in other assets and liabilities	9,263			(258,332		)
Other, net	6,864			10,443
Net cash provided by operating activities	817,471			718,799
Cash flows from investing activities:
Acquisitions (net of cash of $33,932 in 2013)	(14,272		)	(620,647		)
Capital expenditures	(167,371		)	(214,061		)
Proceeds from sale of plant and equipment	10,785			24,321
Proceeds from sale of businesses	—			72,190
Proceeds from deconsolidation of subsidiary	202,498			—
Other, net	(3,382		)	(9,375		)
Net cash provided by (used in) investing activities	28,258			(747,572		)
Cash flows from financing activities:
Net payments for common stock activity	(120,890		)	(125,325		)
Acquisition of noncontrolling interests	—			(1,072		)
Net (payments for) proceeds from debt	(255,319		)	1,186,679
Dividends	(206,516		)	(187,705		)
Net cash (used in) provided by financing activities	(582,725		)	872,577
Effect of exchange rate changes on cash	51,573			(4,802		)
Net increase in cash and cash equivalents	314,577			839,002
Cash and cash equivalents at beginning of period	1,781,412			838,317
Cash and cash equivalents at end of period	$	2,095,989		$	1,677,319

		Exhibit 99.1
PARKER HANNIFIN CORPORATION
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in dollars)
	Fiscal Year 2014
Forecasted earnings per diluted share	$6.82 to $7.02
Adjustments:
Asset writedowns	$1.26
Gain related to joint venture agreement	$(1.68)
Adjusted forecasted earnings per diluted share	$6.40 to $6.60

EX-99.2

3rd Quarter Fiscal Year 2014 Earnings Release Parker Hannifin Corporation April 29, 2014 Exhibit 99.2

Forward-Looking Statements and Non-GAAP Financial Measures Safe Harbor 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, including its individual segments, may differ materially from current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the company's ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance. Among other factors which may affect future performance are: changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments, disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; the ability to realize anticipated benefits of the consolidation of the Climate and Industrial Controls Group; threats associated with and efforts to combat terrorism; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; 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 insurance and employee retirement and health care benefits; and global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability. The company makes these statements as of the date of this disclosure, and undertakes no obligation to update them unless otherwise required by law. This presentation reconciles (a) sales amounts reported in accordance with U.S. GAAP to sales amounts adjusted to remove the effects of acquisitions & deconsolidation of subsidiaries (Joint Venture with JV Aviation) made within the prior four quarters and the effects of currency exchange rates, (b) cash flow from operating activities and cash flow from operating activities as a percent of sales in accordance with U.S. GAAP to cash flow and cash flow from operating activities as a percent of sales without the effect of a discretionary pension plan contribution, (c) operating margins reported in accordance with U.S. GAAP to operating margins without the effect of restructuring expenses and, (d) earnings per diluted share reported in accordance with U.S. GAAP to earnings per diluted share without the effect of restructuring expenses, impact of the Joint Venture with GE Aviation and asset write downs. The effects of acquisitions, divestitures, currency exchange rates, the discretionary pension plan contributions, restructuring expenses, impact of the Joint Venture with GE Aviation, and impact of the asset write downs are removed to allow investors and the company to meaningfully evaluate changes in sales, and cash flow from operating activities as a percent of sales, operating margins, net income and earnings per diluted share on a comparable basis from period to period. Please visit www.PHstock.com for more information 2

Agenda 3 • CEO 3rd Quarter Highlights • Key Performance Measures & Outlook • CEO Closing Comments • Questions and Answers

Highlights 3rd Quarter FY2014 • Strong Operational Quarter • Adjusted Organic Sales Growth of 3.4% • Positive Order Trends continue • Restructuring Initiatives Progressing • 15% by 2015 on track, well positioned for FY15 • Increasing EPS Midpoint Guidance by $0.10 to $6.50 4

Diluted Earnings Per Share 3rd Quarter FY2014 5 $1.60 $1.68 FY14 Q3 FY13 Q3 As Reported EPS $1.88 $1.69 FY14 Q3* FY13 Q3* Adjusted EPS* *Adjusted for restructuring activities

Influences on Adjusted Earnings Per Share 3rd Quarter FY2014 vs. 3rd Quarter FY2013 6

Sales & Operating Margin 3rd Quarter FY2014 - Total Parker 7 $ in millions 3rd Quarter As Reported Adjusted for Joint Venture FY2014 % Change FY2013 FY2014 % Change FY2013 Sales As reported 3,358$ 1.6 % 3,307$ 3,358$ 2.9 % 3,263$ Acquisitions 2 0.1 % 2 0.1 % Currency (18) (0.5)% (18) (0.6)% Organic Sales 3,374$ 2.0 % 3,374$ 3.4 % FY2014 % of Sales FY2013 % of Sales Operating Margin As reported 434$ 12.9 % 463$ 14.0 % Restructuring 60 2 Adjusted Margin 494$ 14.7 % 465$ 14.1 %

Sales & Operating Margin 3rd Quarter FY2014 – Diversified Industrial North America 8 $ in millions 3rd Quarter FY2014 % Change FY2013 Sales As reported 1,455$ 1.9 % 1,428$ Acquisitions 2 0.2 % Currency (11) (0.7)% Organic Sales 1,464$ 2.4 % FY2014 % of Sales FY2013 % of Sales Operating Margin As reported 243$ 16.7 % 224$ 15.7 % Restructuring 0 1 Adjusted Margin 243$ 16.7 % 225$ 15.8 %

Sales & Operating Margin 3rd Quarter FY2014 – Diversified Industrial International 9 $ in millions 3rd Quarter FY2014 % Change FY2013 Sales As reported 1,357$ 4.4 % 1,301$ Acquisitions - - % Currency (8) (0.6)% Organic Sales 1,365$ 5.0 % FY2014 % of Sales FY2013 % of Sales Operating Margin As reported 127$ 9.4 % 158$ 12.2 % Restructuring 59 1 Adjusted Margin 186$ 13.7 % 159$ 12.2 %

Sales & Operating Margin 3rd Quarter FY2014 – Aerospace Systems 10 $ in millions 3rd Quarter As Reported Adjusted for Joint Venture FY2014 % Change FY2013 FY2014 % Change FY2013 Sales As reported 546$ (5.6)% 578$ 546$ 2.1 % 534$ Acquisitions - - % - - % Currency 1 0.1 % 1 0.1 % Organic Sales 545$ (5.7)% 545$ 2.0 % 534$ FY2014 % of Sales FY2013 % of Sales Operating Margin As reported 64$ 11.7 % 80$ 13.9 % Restructuring 0 0 Adjusted Margin 64$ 11.7 % 80$ 13.9 %

Mar 2014 Dec 2013 Mar 2013 Dec 2012 Total Parker 7 %+ 5 %+ 7 %- 2 %- Diversified Industrial North America 6 %+ 3 %+ 10 %- 6 %- Diversified Industrial International 5 %+ 6 %+ 7 %- 5 %- Aerospace Systems 16 %+ 7 %+ 0 %+ 14 %+ Order Rates 11 Excludes Acquisitions, Divestitures & Currency 3-month year-over-year comparisons of total dollars, except Aerospace Systems Aerospace Systems is calculated using a 12-month rolling average

Balance Sheet Summary • Cash • Working capital • Accounts receivable • Inventory • Accounts payable 12

$907 $944 FY14 YTD FY13 YTD Cash Flow from Operating Activities 3rd Quarter YTD FY2014 13 Adjusted Cash Flow From Operating Activities YTD FY2014 % of Sales FY2013 % of Sales As Reported Cash Flow From Operating Activities 817$ 8.4% 719$ 7.5% Discretionary Pension Plan Contribution & Restructuring 90 226 Adjusted Cash Flow From Operating Activities 907$ 9.4% 944$ 9.9%

FY2014 Guidance Increased to $6.50 at Midpoint 14 Sales Growth vs. Prior Year Diversified Industrial North America 2.0% Diversified Industrial International 4.0% Aerospace Systems * -3.0% Total Parker ** 1.5% Segment Operating Margins Diversified Industrial North America 16.6% Diversified Industrial International 11.7% Aerospace Systems 11.8% Total Parker 13.8% Below the Line Items - Excluding Non-Recurring Items Corporate General & Administrative Expense, Interest and Other $461 M Tax Rate Full Year 34.0% Q4 29.0% Shares Diluted Shares Outstanding 151.7 M Adjusted Earnings Per Share Midpoint $6.50 Range $6.40 - $6.60 Sales Growth Adjusted for Joint Venture: * Aerospace Systems Sales Change vs FY2013 is +3% ** Total Parker Sales Change vs FY2013 is +3%

15

Appendix • Consolidated Statement of Income • Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS • Business Segment Information By Industry • Reconciliation of Net Sales to Adjusted Net Sales • Consolidated Balance Sheet • Consolidated Statement of Cash Flows • Supplemental Sales Information – Global Technology Platforms

Consolidated Statement of Income 17 (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, (Dollars in thousands except per share amounts) 2014 2013 2014 2013 Net sales 3,358,406$ 3,307,041$ 9,690,556$ 9,587,471$ Cost of sales 2,605,893 2,569,189 7,502,273 7,468,608 Gross profit 752,513 737,852 2,188,283 2,118,863 Selling, general and administrative expenses 407,241 379,690 1,212,807 1,141,912 Goodw ill and intangible asset impairment - - 188,870 - Interest expense 20,594 23,050 62,403 70,775 Other (income), net (4,812) (3,439) (424,693) (31,062) Income before income taxes 329,490 338,551 1,148,896 937,238 Income taxes 86,972 81,959 408,654 259,584 Net income 242,518 256,592 740,242 677,654 Less: Noncontrolling interests 112 32 232 391 Net income attributable to common shareholders 242,406$ 256,560$ 740,010$ 677,263$ Earnings per share attributable to common shareholders: Basic earnings per share 1.63$ 1.72$ 4.96$ 4.54$ Diluted earnings per share 1.60$ 1.68$ 4.88$ 4.46$ Average shares outstanding during period - Basic 149,039,529 149,287,628 149,143,478 149,191,583 Average shares outstanding during period - Diluted 151,739,617 152,360,612 151,562,276 151,853,522 Cash dividends per common share .48$ .43$ 1.38$ 1.25$

Reconciliation of Net Income & EPS 18 Three Months Ended March 31, Nine Months Ended March 31, 2014 2013 2014 2013 Net income 242,518$ 256,592$ 740,242$ 677,654$ Adjustments: Restructuring charges 42,516 1,205 60,830 5,791 Adjusted net income 285,034$ 257,797$ 801,072$ 683,445$ Earnings per diluted share 1.60$ 1.68$ 4.88$ 4.46$ Adjustments: Restructuring charges 0.28 0.01 0.40 0.04 Adjusted earnings per diluted share 1.88$ 1.69$ 5.28$ 4.50$

Business Segment Information By Industry 19 (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, (Dollars in thousands) 2014 2013 2014 2013 Net sales Diversif ied Industrial: North America 1,455,212$ 1,428,430$ 4,168,489$ 4,171,089$ International 1,357,513 1,300,585 3,905,159 3,768,617 Aerospace Systems 545,681 578,026 1,616,908 1,647,765 Total 3,358,406$ 3,307,041$ 9,690,556$ 9,587,471$ Segment operating income Diversif ied Industrial: North America 242,998$ 224,487$ 677,824$ 658,993$ International 126,933 158,194 434,541 439,839 Aerospace Systems 63,974 80,080 166,306 194,150 Total segment operating income 433,905 462,761 1,278,671 1,292,982 Corporate general and administrative expenses 38,377 41,410 132,406 126,578 Income before interest and other 395,528 421,351 1,146,265 1,166,404 Interest expense 20,594 23,050 62,403 70,775 Other expense (income) 45,444 59,750 (65,034) 158,391 Income before income taxes 329,490$ 338,551$ 1,148,896$ 937,238$

Reconciliation of Net Sales 20 (Unaudited) Three Months Ended March 31, % (Dollars in thousands) 2014 2013 Change Total net sales 3,358,406$ 3,307,041$ 1.6% Adjustments: Sales related to GE joint venture - 43,731 Adjusted total net sales 3,358,406$ 3,263,310$ 2.9% Aerospace Systems net sales 545,681$ 578,026$ -5.6% Adjustments: Sales related to GE joint venture - 43,731 Adjusted Aerospace Systems net sales 545,681$ 534,295$ 2.1%

Consolidated Balance Sheet 21 (Unaudited) March 31, June 30, March 31, (Dollars in thousands) 2014 2013 2013 Assets Current assets: Cash and cash equivalents 2,095,989$ 1,781,412$ 1,677,319$ Accounts receivable, net 2,098,063 2,062,745 2,017,126 Inventories 1,448,989 1,377,405 1,473,072 Prepaid expenses 183,119 182,669 136,268 Deferred income taxes 122,840 126,955 134,724 Total current assets 5,949,000 5,531,186 5,438,509 Plant and equipment, net 1,827,980 1,808,240 1,829,715 Goodw ill 3,164,175 3,223,515 3,229,827 Intangible assets, net 1,210,967 1,290,499 1,313,990 Other assets 950,236 687,458 859,731 Total assets 13,102,358$ 12,540,898$ 12,671,772$ Liabilities and equity Current liabilities: Notes payable 1,078,846$ 1,333,826$ 1,527,696$ Accounts payable 1,200,466 1,156,002 1,162,125 Accrued liabilities 933,077 894,296 838,376 Accrued domestic and foreign taxes 154,792 136,079 120,352 Total current liabilities 3,367,181 3,520,203 3,648,549 Long-term debt 1,508,611 1,495,960 1,496,026 Pensions and other postretirement benefits 1,306,667 1,372,437 1,693,048 Deferred income taxes 111,508 102,920 127,159 Other liabilities 354,158 307,897 294,582 Shareholders' equity 6,450,996 5,738,426 5,409,058 Noncontrolling interests 3,237 3,055 3,350 Total liabilities and equity 13,102,358$ 12,540,898$ 12,671,772$

Consolidated Statement of Cash Flows 22 (Unaudited) Nine Months Ended March 31, (Dollars in thousands) 2014 2013 Cash flows from operating activities: Net income 740,242$ 677,654$ Depreciation and amortization 253,150 250,574 Stock incentive plan compensation 84,647 65,516 Goodw ill and intangible asset impairment 188,870 - Gain on deconsolidation of subsidiary (412,612) - Gain on sale of businesses - (13,313) Net change in receivables, inventories, and trade payables (52,953) (13,743) Net change in other assets and liabilities 9,263 (258,332) Other, net 6,864 10,443 Net cash provided by operating activities 817,471 718,799 Cash flows from investing activities: Acquisitions (net of cash of $33,932 in 2013) (14,272) (620,647) Capital expenditures (167,371) (214,061) Proceeds from sale of plant and equipment 10,785 24,321 Proceeds from sale of business - 72,190 Proceeds from deconsolidation of subsidiary 202,498 - Other, net (3,382) (9,375) Net cash provided by (used in) investing activities 28,258 (747,572) Cash flows from financing activities: Net payments for common stock activity (120,890) (125,325) Acquisition of noncontrolling interests - (1,072) Net (payments for) proceeds from debt (255,319) 1,186,679 Dividends (206,516) (187,705) Net cash (used in) provided by financing activities (582,725) 872,577 Effect of exchange rate changes on cash 51,573 (4,802) Net increase in cash and cash equivalents 314,577 839,002 Cash and cash equivalents at beginning of period 1,781,412 838,317 Cash and cash equivalents at end of period 2,095,989$ 1,677,319$

Supplemental Sales Information Global Technology Platforms 23 (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, (Dollars in thousands) 2014 2013 2014 2013 Net sales Diversif ied Industrial: Motion Systems $999,742 $971,684 $2,862,396 $2,901,477 Flow and Process Control 1,097,427 1,076,542 3,124,482 3,076,571 Filtration and Engineered Materials 715,556 680,789 2,086,770 1,961,658 Aerospace Systems 545,681 578,026 1,616,908 1,647,765 Total 3,358,406$ 3,307,041$ 9,690,556$ 9,587,471$