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): August 6, 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 August 6, 2014, Parker-Hannifin Corporation issued a press release and presented a Webcast announcing results of operations for the quarter ended June 30, 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 August 6, 2014.

99.2    Webcast presentation by Parker-Hannifin Corporation, dated August 6, 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: August 6, 2014

EX-99.1

Exhibit 99.1    

For Release:    Immediately                    

Contact:	Media -
	Aidan Gormley -Director, Global Communications and Branding	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 Fourth Quarter and Full Year Sales, Net Income and Earnings per Share

• Record fourth quarter sales, operating cash flow and full year sales

• Fourth quarter earnings per diluted share $1.98, or $2.06 adjusted for restructuring expenses

• Additional, one-time, fourth quarter restructuring related costs estimated at $0.10 per diluted share

• Company anticipates record year in fiscal 2015 with earnings guidance in the range of $7.00 to $7.80 per diluted share, or $7.25 to $8.05 adjusted for restructuring expenses

CLEVELAND, August 6, 2014 - Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2014 fourth quarter and full year ended June 30, 2014. Fiscal 2014 sales were a record at $13.2 billion, compared with $13.0 billion in fiscal 2013. Net income for fiscal 2014 was $1,041 million, or $6.87 per diluted share, compared with net income of $949 million, or $6.26 per diluted share in fiscal 2013. Adjusted earnings per diluted share for fiscal 2014 were $6.94. A reconciliation of 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 fiscal 2014 was $1.4 billion or 10.5 percent of sales compared with $1.2 billion or 9.1 percent of sales in the prior year. Excluding a discretionary contribution to the company’s pension plan of $75 million in fiscal 2014, cash flow from operations was 11.1 percent of sales.

“Fiscal 2014 was a transitional year as we worked through the most significant restructuring in our history.” said Chairman, CEO and President, Don Washkewicz. “I am proud that our global team was able to stay focused and still deliver record sales, and strong earnings and cash flow for the year, which included record fourth quarter operating cash flow. Overall, we are well positioned entering the new fiscal year.”

Fiscal 2014 fourth quarter sales increased 3 percent to a record $3.53 billion, compared with $3.43 billion in the same period a year ago. Fiscal 2014 fourth quarter net income was $301.2 million, or $1.98 earnings per diluted share, compared with $271.1 million, or $1.78 earnings per diluted share in the prior year quarter. Fiscal 2014 fourth quarter earnings per diluted share were $2.06 adjusted for the impact of $0.08 in earnings per diluted share in restructuring expenses.

Fourth Quarter Segment Results

Diversified Industrial Segment: North American fourth quarter sales increased 4.0 percent to $1.53 billion, and operating income was $268.7 million compared with $249.7 million in the same period a year ago. International fourth quarter sales increased 3.1 percent to $1.38 billion, and operating income was $137.9 million compared with $162.6 million in the same period a year ago.

Aerospace Systems Segment: Fourth quarter sales were essentially flat at $617.6 million, reflecting the impact of the previously announced joint venture between Parker Aerospace and GE Aviation. Operating income was $104.9 million compared with $86.1 million in the same period a year ago.

Orders

Parker reported an increase of 4 percent in orders for the quarter ending June 30, 2014, compared with the same quarter a year ago. This is the fourth consecutive quarter of year-over-year positive order growth. The company reported the following orders by business:

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

• Orders decreased 4 percent in the Diversified Industrial International businesses

• Orders increased 17 percent in the Aerospace Systems segment on a rolling 12-month average basis.

Fiscal 2015 Outlook

For the fiscal year ending June 30, 2015, the company has issued guidance for earnings per diluted share in the range of $7.00 to $7.80, or $7.25 to $8.05 on an adjusted basis. Fiscal year 2015 guidance is adjusted for expected restructuring expenses of approximately $0.25 per diluted share.

Washkewicz added, “In fiscal year 2015, we anticipate generally stable macroeconomic conditions. As always, we will stay the course by executing the Win Strategy, which has helped us deliver consistent results and are poised to deliver another year of record earnings performance for Parker.”

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2014 fourth 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 exceeding $13 billion in fiscal year 2014, 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 57,500 people in 50 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) net income without the effect of a gain associated with a joint venture agreement, asset writedowns and restructuring expense, (b) earnings per diluted share without the effect of a gain associated with a joint venture, asset writedowns and restructuring expense (c) cash flow excluding discretionary contributions to the company’s pension plan, and (d) the effect of restructuring expenses on forecasted earnings per diluted share. The effects of divestitures, a gain associated with a joint venture, asset writedowns, restructuring expenses, and pension plan contributions are removed to allow investors and the company to meaningfully evaluate changes in sales, 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 - JUNE 30, 2014										Exhibit 99.1
CONSOLIDATED STATEMENT OF INCOME
	Three Months Ended June 30,						Year Ended June 30,
(Dollars in thousands except per share amounts)	2014			2013			2014			2013
Net sales	$	3,525,415		$	3,428,233		$	13,215,971		$	13,015,704
Cost of sales	2,685,954			2,618,067			10,188,227			10,086,675
Gross profit	839,461			810,166			3,027,744			2,929,029
Selling, general and administrative expenses	421,185			413,061			1,633,992			1,554,973
Goodwill and intangible asset impairment	—			—			188,870			—
Interest expense	20,163			20,777			82,566			91,552
Other (income) expense, net	(9,711		)	2,565			(434,404		)	(28,497		)
Income before income taxes	407,824			373,763			1,556,720			1,311,001
Income taxes	106,648			102,633			515,302			362,217
Net income	301,176			271,130			1,041,418			948,784
Less: Noncontrolling interests	138			(34		)	370			357
Net income attributable to common shareholders	$	301,038		$	271,164		$	1,041,048		$	948,427
Earnings per share attributable to common shareholders:
Basic earnings per share	$	2.02		$	1.82		$	6.98		$	6.36
Diluted earnings per share	$	1.98		$	1.78		$	6.87		$	6.26
Average shares outstanding during period - Basic	148,967,357			149,298,277			149,099,448			149,218,257
Average shares outstanding during period - Diluted	151,803,746			152,115,402			151,444,103			151,588,031
Cash dividends per common share	$	0.48		$	0.45		$	1.86		$	1.70
RECONCILIATION OF NET INCOME AND EARNINGS PER DILUTED SHARE TO ADJUSTED NET INCOME AND EARNINGS PER DILUTED SHARE
(Unaudited)
Net income	$	301,176		$	271,130		$	1,041,418		$	948,784
Adjustments:
Restructuring charges	12,854			3,392			73,684			10,048
Asset writedowns	—			—			192,188			—
Gain related to joint venture agreement	—			—			(255,652		)	—
Adjusted net income	$	314,030		$	274,522		$	1,051,638		$	958,832
Earnings per diluted share	$	1.98		$	1.78		$	6.87		$	6.26
Adjustments:
Restructuring charges	0.08			0.02			0.49			0.07
Asset writedowns	—			—			1.26			—
Gain related to joint venture agreement	—			—			(1.68		)	—
Adjusted earnings per diluted share	$	2.06		$	1.80		$	6.94		$	6.33

PARKER HANNIFIN CORPORATION - JUNE 30, 2014								Exhibit 99.1
BUSINESS SEGMENT INFORMATION BY INDUSTRY
	Three Months Ended June 30,				Year Ended June 30,
(Dollars in thousands)	2014		2013		2014			2013
Net sales
Diversified Industrial:
North America	$	1,525,038	$	1,466,568	$	5,693,527		$	5,637,657
International	1,382,757		1,341,715		5,287,916			5,110,332
Aerospace Systems	617,620		619,950		2,234,528			2,267,715
Total	$	3,525,415	$	3,428,233	$	13,215,971		$	13,015,704
Segment operating income
Diversified Industrial:
North America	$	268,669	$	249,726	$	946,493		$	908,719
International	137,935		162,641		572,476			602,480
Aerospace Systems	104,932		86,136		271,238			280,286
Total segment operating income	511,536		498,503		1,790,207			1,791,485
Corporate general and administrative expenses	49,520		59,189		181,926			185,767
Income before interest expense and other expense	462,016		439,314		1,608,281			1,605,718
Interest expense	20,163		20,777		82,566			91,552
Other expense (income)	34,029		44,774		(31,005		)	203,165
Income before income taxes	$	407,824	$	373,763	$	1,556,720		$	1,311,001

RECONCILIATION OF NET SALES TO ADJUSTED NET SALES
(Unaudited)
	Three Months Ended June 30,				%		Year Ended June 30,				%
	2014		2013		Change		2014		2013		Change
Total net sales	$	3,525,415	$	3,428,233	2.8	%	$	13,215,971	$	13,015,704	1.5	%
Adjustments:
Sales related to GE joint venture	—		51,247				$	49,510	$	175,306
Adjusted total net sales	$	3,525,415	$	3,376,986	4.4	%	$	13,166,461	$	12,840,398	2.5	%
Aerospace Systems net sales	$	617,620	$	619,950	(0.4	)%	$	2,234,528	$	2,267,715	(1.5	)%
Adjustments:
Sales related to GE joint venture	—		51,247				$	49,510	$	175,306
Adjusted Aerospace Systems net sales	$	617,620	$	568,703	8.6	%	$	2,185,018	$	2,092,409	4.4	%

			Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2014
CONSOLIDATED BALANCE SHEET
	June 30,		June 30,
(Dollars in thousands)	2014		2013
Assets
Current assets:
Cash and cash equivalents	$	1,613,555	$	1,781,412
Marketable securities	573,701		—
Trade accounts receivable, net	1,858,176		1,840,820
Non-trade and notes receivable	388,437		221,925
Inventories	1,371,681		1,377,405
Prepaid expenses	129,837		182,669
Deferred income taxes	136,193		126,955
Total current assets	6,071,580		5,531,186
Plant and equipment, net	1,824,294		1,808,240
Goodwill	3,171,425		3,223,515
Intangible assets, net	1,188,282		1,290,499
Other assets	1,018,781		687,458
Total assets	$	13,274,362	$	12,540,898
Liabilities and equity
Current liabilities:
Notes payable	$	816,622	$	1,333,826
Accounts payable	1,252,040		1,156,002
Accrued liabilities	960,523		894,296
Accrued domestic and foreign taxes	223,611		136,079
Total current liabilities	3,252,796		3,520,203
Long-term debt	1,508,142		1,495,960
Pensions and other postretirement benefits	1,346,224		1,372,437
Deferred income taxes	94,819		102,920
Other liabilities	409,573		307,897
Shareholders' equity	6,659,428		5,738,426
Noncontrolling interests	3,380		3,055
Total liabilities and equity	$	13,274,362	$	12,540,898

				Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2014
CONSOLIDATED STATEMENT OF CASH FLOWS
	Year Ended June 30,
(Dollars in thousands)	2014			2013
Cash flows from operating activities:
Net income	$	1,041,418		$	948,784
Depreciation and amortization	336,702			335,624
Stock incentive plan compensation	103,161			84,996
Goodwill and intangible asset impairment	188,870			—
Gain on sale of deconsolidation of subsidiary	(412,612		)	—
Gain on sale of businesses	—			(14,637		)
Net change in receivables, inventories, and trade payables	(10,033		)	11,230
Net change in other assets and liabilities	206,131			(195,937		)
Other, net	(65,744		)	20,875
Net cash provided by operating activities	1,387,893			1,190,935
Cash flows from investing activities:
Acquisitions (net of cash of $1,780 in 2014 and $33,932 in 2013)	(17,593		)	(621,144		)
Capital expenditures	(216,340		)	(265,896		)
Proceeds from sale of plant and equipment	14,368			25,047
Proceeds from sale of businesses	—			73,515
Proceeds from deconsolidation of subsidiary	202,498			—
Purchase of marketable securities and other investments	(624,880		)	—
Other, net	(4,454		)	(21,367		)
Net cash (used in) investing activities	(646,401		)	(809,845		)
Cash flows from financing activities:
Net payments for common stock activity	(162,298		)	(159,773		)
Acquisition of noncontrolling interests	—			(1,091		)
Net (payments for) proceeds from debt	(517,573		)	992,047
Dividends	(278,244		)	(255,009		)
Net cash (used in) provided by financing activities	(958,115		)	576,174
Effect of exchange rate changes on cash	48,766			(14,169		)
Net (decrease) increase in cash and cash equivalents	(167,857		)	943,095
Cash and cash equivalents at beginning of period	1,781,412			838,317
Cash and cash equivalents at end of period	$	1,613,555		$	1,781,412

		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 2015
Forecasted earnings per diluted share	$7.00 to $7.80
Adjustments:
Restructuring charges	0.25
Adjusted forecasted earnings per diluted share	$7.25 to $8.05

EX-99.2

4th Quarter & Fiscal Year 2014 Earnings Release Parker Hannifin Corporation August 6, 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; 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. 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 GE 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 Highlights • Key Performance Measures & Outlook • CEO Closing Comments • Questions and Answers

Highlights FY2014 • Record Sales of $13.2B • Segment Operating Margins of 13.5% • Adjusted Segment Operating Margins of 14.3% • Earnings Per Share of $6.87 • Adjusted Earnings Per Share of $6.94 • 10% Increase in EPS and Adjusted EPS • $1.4B in Operating Cash Flow • 13th Consecutive Year greater than 10% of sales • Increased Dividend by 7% • 58th Consecutive Year of increased annual dividend 4

Highlights 4th Quarter FY2014 • Record Sales of $3.5B • Segment Operating Margins of 14.5% • Adjusted Segment Operating Margins of 15.0% • Earnings Per Share of $1.98 • Adjusted Earnings Per Share of $2.06 • Record Operating Cash Flow of $570M, 16.2% of sales 5

Diluted Earnings Per Share FY2014 6 * EPS Adjusted for Restructuring Activities, Joint Venture Gain and Asset Write Downs $1.98 $1.78 $6.87 $6.26 FY14 Q4 FY13 Q4 FY14 FY13 EPS - As Reported $2.06 $1.80 $6.94 $6.33 FY14 Q4* FY13 Q4* FY14* FY13* EPS - Adjusted

Influences on Adjusted Earnings Per Share FY2014 vs. FY2013 7

Influences on Adjusted Earnings Per Share 4th Quarter FY2014 vs. 4th Quarter FY2013 8

Sales & Segment Operating Margin Total Parker 9 $ in millions 4th Quarter Full Year As Reported Adjusted for Joint Venture As Reported Adjusted for Joint Venture FY2014 % Change FY2013 FY2014 % Change FY2013 FY2014 % Change FY2013 FY2014 % Change FY2013 Sales As Reported 3,525$ 2.8 % 3,428$ 3,525$ 4.4 % 3,377$ 13,215$ 1.5 % 13,016$ 13,165$ 2.5 % 12,840$ Acquisitions 3 (0.0)% 3 (0.0)% 74 0.5 % 74 0.6 % Currency 21 0.6 % 21 0.6 % (23) (0.2)% (23) (0.2)% Organic Sales 3,501$ 2.2 % 3,501$ 3.8 % 13,164$ 1.2 % 13,114$ 2.1 % FY2014 % of Sales FY2013 % of Sales FY2014 % of Sales FY2013 % of Sales Segment Operating Margin As Reported 512$ 14.5 % 499$ 14.5 % 1,790$ 13.5 % 1,792$ 13.8 % Restructuring 18 4 102 12 Adjusted Margin 530$ 15.0 % 503$ 14.7 % 1,892$ 14.3 % 1,804$ 13.9 % Restructuring Amounts exclude amounts reported in Other Expense FY14 $1.3M, FY13 $1.9M

Sales & Segment Operating Margin Diversified Industrial North America 10 $ in millions 4th Quarter Full Year FY2014 % Change FY2013 FY2014 % Change FY2013 Sales As Reported 1,525$ 4.0 % 1,466$ 5,693$ 1.0 % 5,638$ Acquisitions 3 0.0 % 52 0.9 % Currency (6) (0.4)% (27) (0.5)% Organic Sales 1,528$ 4.4 % 5,668$ 0.6 % FY2014 % of Sales FY2013 % of Sales FY2014 % of Sales FY2013 % of Sales Segment Operating Margin As Reported 268$ 17.6 % 250$ 17.0 % 947$ 16.6 % 909$ 16.1 % Restructuring 1 1 2 2 Adjusted Margin 269$ 17.7 % 251$ 17.1 % 949$ 16.7 % 911$ 16.2 %

Sales & Segment Operating Margin Diversified Industrial International 11 $ in millions 4th Quarter Full Year FY2014 % Change FY2013 FY2014 % Change FY2013 Sales As Reported 1,383$ 3.1 % 1,342$ 5,288$ 3.5 % 5,110$ Acquisitions - - % 22 0.4 % Currency 26 2.0 % - - % Organic Sales 1,357$ 1.1 % 5,266$ 3.1 % FY2014 % of Sales FY2013 % of Sales FY2014 % of Sales FY2013 % of Sales Segment Operating Margin As Reported 138$ 10.0 % 163$ 12.1 % 573$ 10.8 % 602$ 11.8 % Restructuring 17 3 99 10 Adjusted Margin 155$ 11.2 % 166$ 12.4 % 672$ 12.7 % 612$ 12.0 %

Sales & Segment Operating Margin Aerospace Systems 12 $ in millions 4th Quarter Full Year As Reported Adjusted for Joint Venture As Reported Adjusted for Joint Venture FY2014 % Change FY2013 FY2014 % Change FY2013 FY2014 % Change FY2013 FY2014 % Change FY2013 Sales As Reported 618$ (0.3)% 620$ 618$ 8.6 % 569$ 2,234$ (1.5)% 2,268$ 2,184$ 4.4 % 2,092$ Acquisitions - - % - - % - - % - - % Currency 1 0.2 % 1 0.2 % 4 0.1 % 4 0.2 % Organic Sales 617$ (0.5)% 617$ 8.4 % 569$ 2,230$ (1.6)% 2,180$ 4.2 % 2,092$ FY2014 % of Sales FY2013 % of Sales FY2014 % of Sales FY2013 % of Sales Segment Operating Margin As Reported 105$ 17.0 % 86$ 13.9 % 271$ 12.1 % 281$ 12.4 % Restructuring 0 0 1 0 Adjusted Margin 105$ 17.0 % 86$ 13.9 % 272$ 12.2 % 281$ 12.4 %

Jun 2014 Mar 2014 Jun 2013 Mar 2013 Total Parker 4 %+ 7 %+ 0% 7 %- Diversified Industrial North America 6 %+ 6 %+ 5 %- 10 %- Diversified Industrial International 4 %- 5 %+ 3 %+ 7 %- Aerospace Systems 17 %+ 16 %+ 3 %+ 0 %+ Order Rates 13 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 14

Cash Flow from Operating Activities 15 4th Quarter Full Year FY 2014 % of Sales FY 2013 % of Sales FY 2014 % of Sales FY 2013 % of Sales As Reported Cash Flow From Operating Activities 570 16.2% 472 13.8% 1,388 10.5% 1,191 9.1% Discreti nary Pension Plan Contribution 75 226 Adjusted Cash Flow From Operating Activities 570 16.2% 472 13.8% 1,463 11.1% 1,417 10.9% $570 $472 $1,463 $1,417 FY14 Q4 FY13 Q4 FY14 FY13

FY2015 Guidance Adjusted EPS Initiated at $7.65 Midpoint 16 Adjusted Sales Growth vs. Prior Year Diversified Industrial North America 3% - 7% Diversified Industrial International 1% - 4% Aerospace Systems 2% - 3% Total Parker 2% - 5% Adjusted Segment Operating Margins Diversified Industrial North America 16.5% - 16.9% Diversified Industrial International 14.7% - 15.7% Aerospace Systems 13.1% - 13.9% Total Parker 15.2% - 15.9% Below the Line Items Corporate General & Administrative Expense, Interest and Other $490 M Tax Rate Full Year 29.0% Shares Diluted Shares Outstanding 151.4 M Earnings Per Share As Reported Range $7.00 - $7.80 Adjusted Range $7.25 - $8.05 FY15 Sales Growth %’s calculated from FY14 Sales adjusted for JV with GE Aviation FY15 Segment Operating Margins exclude FY15 Restructuring expenses

Influences on Adjusted Earnings Per Share FY2015 vs. FY2014 17

18

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 • Reconciliation of Forecasted EPS

Consolidated Statement of Income 20 Three Months Ended June 30, Year Ended June 30, (Dollars in thousands except per share amounts) 2014 2013 2014 2013 Net sales 3,525,415$ 3,428,233$ 13,215,971$ 13,015,704$ Cost of sales 2,685,954 2,618,067 10,188,227 10,086,675 Gross profit 839,461 810,166 3,027,744 2,929,029 Selling, general and administrative expenses 421,185 413,061 1,633,992 1,554,973 Goodw ill and intangible asset impairment - - 188,870 - Interest expense 20,163 20,777 82,566 91,552 Other (income) expense, net (9,711) 2,565 (434,404) (28,497) Income before income taxes 407,824 373,763 1,556,720 1,311,001 Income taxes 106,648 102,633 515,302 362,217 Net income 301,176 271,130 1,041,418 948,784 Less: Noncontrolling interests 138 (34) 370 357 Net income attributable to common shareholders 301,038$ 271,164$ 1,041,048$ 948,427$ Earnings per share attributable to common shareholders: Basic earnings per share 2.02$ 1.82$ 6.98$ 6.36$ Diluted earnings per share 1.98$ 1.78$ 6.87$ 6.26$ Average shares outstanding during period - Basic 148,967,357 149,298,277 149,099,448 149,218,257 Average shares outstanding during period - Diluted 151,803,746 152,115,402 151,444,103 151,588,031 Cash dividends per common share .48$ .45$ 1.86$ 1.70$

(Unaudited) Three Months Ended June 30, Year Ended June 30, 2014 2013 2014 2013 Net income 301,176$ 271,130$ 1,041,418$ 948,784$ Adjustments: Restructuring charges 12,854 3,392 73,684 10,048 Asset w ritedow ns - - 192,188 - Gain related to joint venture agreement - - (255,652) - Adjusted net income 314,030$ 274,522$ 1,051,638$ 958,832$ Earnings per diluted share 1.98$ 1.78$ 6.87$ 6.26$ Adjustments: Restructuring charges 0.08 0.02 0.49 0.07 Asset w ritedow ns - - 1.26 - Gain related to joint venture agreement - - (1.68) - Adjusted earnings per diluted share 2.06$ 1.80$ 6.94$ 6.33$ Reconciliation of Net Income & EPS 21

Three Months Ended June 30, Year Ended June 30, (Dollars in thousands) 2014 2013 2014 2013 Net sales Diversif ied Industrial: North America 1,525,038$ 1,466,568$ 5,693,527$ 5,637,657$ International 1,382,757 1,341,715 5,287,916 5,110,332 Aerospace Systems 617,620 619,950 2,234,528 2,267,715 Total 3,525,415$ 3,428,233$ 13,215,971$ 13,015,704$ Segment operating income Diversif ied Industrial: North America 268,669$ 249,726$ 946,493$ 908,719$ International 137,935 162,641 572,476 602,480 Aerospace Systems 104,932 86,136 271,238 280,286 Total segment operating income 511,536 498,503 1,790,207 1,791,485 Corporate general and administrative expenses 49,520 59,189 181,926 185,767 Income before interest and other 462,016 439,314 1,608,281 1,605,718 Interest expense 20,163 20,777 82,566 91,552 Other expense (income) 34,029 44,774 (31,005) 203,165 Income before income taxes 407,824$ 373,763$ 1,556,720$ 1,311,001$ Business Segment Information By Industry 22

Reconciliation of Net Sales 23 (Unaudited) Three Months Ended June 30, % Year Ended June 30, % 2014 2013 Change 2014 2013 Change Total net sales 3,525,415$ 3,428,233$ 2.8% 13,215,971$ 13,015,704$ 1.5% Adjustments: Sales related to GE joint venture - 51,247 49,510 175,306 Adjusted total net sales 3,525,415$ 3,376,986$ 4.4% 13,166,461$ 12,840,398$ 2.5% Aerospace Systems net sales 617,620$ 619,950$ (0.4%) 2,234,528$ 2,267,715$ (1.5%) Adjustments: Sales related to GE joint venture - 51,247 49,510 175,306 Adjusted Aerospace Systems net sales 617,620$ 568,703$ 8.6% 2,185,018$ 2,092,409$ 4.4%

Consolidated Balance Sheet 24 June 30, June 30, (Dollars in thousands) 2014 2013 Assets Current assets: Cash and cash equivalents 1,613,555$ 1,781,412$ Marketable securities 573,701 - Trade accounts receivable, net 1,858,176 1,840,820 Non-trade and notes receivable 388,437 221,925 Inventories 1,371,681 1,377,405 Prepaid expenses 129,837 182,669 Deferred income taxes 136,193 126,955 Total current assets 6,071,580 5,531,186 Plant and equipment, net 1,824,294 1,808,240 Goodw ill 3,171,425 3,223,515 Intangible assets, net 1,188,282 1,290,499 Other assets 1,018,781 687,458 Total assets 13,274,362$ 12,540,898$ Liabilities and equity Current liabilities: Notes payable 816,622$ 1,333,826$ Accounts payable 1,252,040 1,156,002 Accrued liabilities 960,523 894,296 Accrued domestic and foreign taxes 223,611 136,079 Total current liabilities 3,252,796 3,520,203 Long-term debt 1,508,142 1,495,960 Pensions and other postretirement benefits 1,346,224 1,372,437 Deferred income taxes 94,819 102,920 Other liabilities 409,573 307,897 Shareholders' equity 6,659,428 5,738,426 Noncontrolling interests 3,380 3,055 Total liabilities and equity 13,274,362$ 12,540,898$

Consolidated Statement of Cash Flows 25 Year Ended June 30, (Dollars in thousands) 2014 2013 Cash flows from operating activities: Net income 1,041,418$ 948,784$ Depreciation and amortization 336,702 335,624 Stock incentive plan compensation 103,161 84,996 Goodw ill and intangible asset impairment 188,870 - Gain on deconsolidation of subsidiary (412,612) - Gain on sale of businesses - (14,637) Net change in receivables, inventories, and trade payables (10,033) 11,230 Net change in other assets and liabilities 206,131 (195,937) Other, net (65,744) 20,875 Net cash provided by operating activities 1,387,893 1,190,935 Cash flows from investing activities: Acquisitions (net of cash of $1,780 in 2014 and $33,932 in 2013) (17,593) (621,144) Capital expenditures (216,340) (265,896) Proceeds from sale of plant and equipment 14,368 25,047 Proceeds from sale of business - 73,515 Proceeds from deconsolidation of subsidiary 202,498 - Purchase of marketable securities and other investments (624,880) - Other, net (4,454) (21,367) Net cash (used in) investing activities (646,401) (809,845) Cash flows from financing activities: Net payments for common stock activity (162,298) (159,773) Acquisition of noncontrolling interests - (1,091) Net (payments for) proceeds from debt (517,573) 992,047 Dividends (278,244) (255,009) Net cash (used in) provided by financing activities (958,115) 576,174 Effect of exchange rate changes on cash 48,766 (14,169) Net (decrease) increase in cash and cash equivalents (167,857) 943,095 Cash and cash equivalents at beginning of period 1,781,412 838,317 Cash and cash equivalents at end of period 1,613,555$ 1,781,412$

(Unaudited) Three Months Ended June 30, Year Ended June 30, (Dollars in thousands) 2014 2013 2014 2013 Net sales Diversif ied Industrial: Motion Systems 1,036,565$ 996,735$ 3,898,961$ 3,898,212$ Flow and Process Control 1,128,107 1,100,614 4,252,589 4,177,185 Filtration and Engineered Materials 743,123 710,934 2,829,893 2,672,592 Aerospace Systems 617,620 619,950 2,234,528 2,267,715 Total 3,525,415$ 3,428,233$ 13,215,971$ 13,015,704$ Supplemental Sales Information Global Technology Platforms 26

(Unaudited) (Amounts in dollars) Fiscal Year 2015 Forecasted earnings per diluted share $7.00 to $7.80 Adjustments: Restructuring charges .25 Adjusted forecasted earnings per diluted share $7.25 to $8.05 Reconciliation of Forecasted EPS 27