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): January 19, 2010

PARKER-HANNIFIN CORPORATION

(Exact Name of Registrant as Specified in Charter)

Ohio	1-4982	34-0451060
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6035 Parkland Blvd. 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

Item 7.01 Regulation FD Disclosure

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure”

On January 19, 2010, Parker-Hannifin Corporation issued a press release and presented a Webcast announcing earnings for the quarter ended December 31, 2009. The press release and the Webcast presentation contain references to sales growth excluding the effects of acquisitions and foreign currency exchange rates. The effects of acquisitions and foreign currency exchange rates are removed to allow investors and the company to meaningfully evaluate changes in sales on a comparable basis from period to period. A copy of the press release is filed as Exhibit 99.1 to this report. A copy of the Webcast presentation is filed 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 January 19, 2010.
99.2	Webcast presentation by Parker-Hannifin Corporation, dated January 19, 2010.

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/    TIMOTHY K. PISTELL
	Timothy K. Pistell
	Executive Vice President - Finance and Administration and Chief Financial Officer

Date: January 19, 2010

EX-99.1

Exhibit 99.1

For Release:	Immediately
Contact:	Media – Christopher M. Farage – Vice President, Communications & External Affairs cfarage@parker.com	216/896-2750
	Financial Analysts – Pamela Huggins, Vice President – Treasurer phuggins@parker.com	216/896-2240

Stock Symbol: PH – NYSE

Parker Reports Fiscal 2010 Second Quarter Sales, Net Income and Earnings per Share

• Results Demonstrate Strong Sequential Improvement

• Cash Flows Remain Robust

• Company Raises EPS Guidance 44 Percent

CLEVELAND, January 19, 2010 – Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2010 second quarter ending December 31, 2009. Fiscal 2010 second quarter sales were $2.4 billion, an increase of 5.3 percent compared with the first quarter of fiscal 2010 and a decline of 12.4 percent from $2.7 billion in the second quarter a year ago. Fiscal 2010 second quarter net income was $104.6 million, an increase of 42.3 percent compared with the first quarter of fiscal 2010 and a decline of 32.7 percent compared with $155.4 million in the second quarter of fiscal 2009. Fiscal 2010 second quarter earnings per diluted share of $0.64, increased 41.6 percent from the first quarter of fiscal 2010 and declined 33.1 percent compared with $0.96 in the second quarter a year ago. Cash flow from operations for the first six months of fiscal 2010 was $606.3 million, or 13.2 percent of sales, compared with $444.5 million, or 7.7 percent of sales in the same prior year period.

“This quarter’s results largely reflect the execution of our Win Strategy including the benefits of actions we have taken to restructure our operations since the recession began.” said Chairman, CEO and President Don Washkewicz. “Notably, our performance has improved significantly relative to the first quarter of the year.

1

Considering that our second quarter is typically our weakest, our margin performance this quarter was most impressive with decremental margins at just 10.6 percent. Total segment operating margins exceeded 10 percent at this low point in the cycle and were equal to last year. These are strong indicators that we are managing through this unprecedented downturn very effectively.

“Although the effects of the global recession continue to linger, we are encouraged to see Parker’s order trends improve sequentially for the second consecutive quarter. Organic sales declined approximately 16 percent in the quarter, while foreign currency translation positively impacted sales by approximately 4 percent. Operating cash flow year to date of 13.2 percent, another critical measure of our performance, was well above our targeted level of 10 percent. Our strong cash performance and balance sheet management throughout the recession has enabled us to pay down our outstanding debt by approximately $1 billion in the past twelve months, bringing our current debt-to-debt equity ratio below 30 percent and further strengthening our balance sheet.”

Segment Results

In the Industrial North America segment, second quarter sales declined 14.7 percent to $847.2 million, and operating income increased 6.3 percent to $114.4 million, compared with the same period a year ago.

In the Industrial International segment, second quarter sales declined 10.6 percent to $932.1 million, and operating income declined 28.2 percent to $82.6 million, compared with the same period a year ago.

In the Aerospace segment, second quarter sales declined 15.4 percent to $400.6 million, and operating income declined 41.1 percent to $41.0 million, compared with the same period a year ago.

In the Climate & Industrial Controls segment, second quarter sales declined 2.4 percent to $174.9 million, and operating income increased 147.9 percent to $6.1 million, compared with the same period a year ago.

2

Orders

In addition to financial results, Parker also reported a decline of 7 percent in total orders for the quarter ending December 31, 2009, compared with the same quarter a year ago. Parker reported the following orders by operating segment:

• Orders declined 3 percent in the Industrial North America segment, compared with the same quarter a year ago.

• Orders were unchanged in the Industrial International segment, compared with the same quarter a year ago.

• Orders declined 27 percent in the Aerospace segment on a rolling 12 month average basis.

• Orders increased 6 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.

Outlook

For fiscal 2010, the company has increased its guidance for earnings from continuing operations by 44 percent to the range of $2.40 to $2.80 per diluted share.

Washkewicz added, “With our actions to drive strong margin and cash flow performance taking full effect, and what we believe to be the early signs of a recovery emerging, we are anticipating a strong second half to our fiscal year and have raised our guidance appropriately. Our priorities will remain unchanged as we progress through this fiscal year focused on executing the Win Strategy and managing for cash while simultaneously targeting strong margin performance. Parker’s management remains proud of our worldwide team of employees who has made these results possible. As the recovery unfolds, Parker’s leading market position, global scale and balance, end market breadth, and solid financial and operational fundamentals position us well for profitable growth.”

NOTICE OF CONFERENCE CALL: Parker Hannifin’s conference call and slide presentation to discuss its fiscal 2010 second quarter results are available to all interested parties via live webcast today at 10:00 a.m.

3

ET, on the company’s investor information web site, http://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 http://www.phstock.com for one year after the call.

With annual sales exceeding $10 billion in fiscal year 2009, 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 52,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 53 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 web site at http://www.phstock.com.

Notes 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 the Industrial North America, Industrial International, and Climate and Industrial Controls segments, and the year-over-year 12-month rolling average of orders for the Aerospace segment.

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 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 recession, and growth, innovation and global diversification 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: 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; uncertainties surrounding timing, successful completion or integration of acquisitions; 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 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, 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.

###

4

PARKER HANNIFIN CORPORATION – DECEMBER 31, 2009

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

	Three Months Ended December 31,					Six Months Ended December 31,
(Dollars in thousands except per share amounts)	2009		2008			2009		2008
Net sales	$	2,354,708	$	2,688,656		$	4,591,873	$	5,753,344
Cost of sales		1,869,481		2,121,450			3,670,426		4,458,672
Gross profit		485,227		567,206			921,447		1,294,672
Selling, general and administrative expenses		309,840		337,183			611,683		669,866
Interest expense		25,029		30,307			50,752		58,403
Other expense, net		8,123		483			2,748		8,782
Income before income taxes		142,235		199,233			256,264		557,621
Income taxes		37,272		42,472			77,331		149,025
Net income		104,963		156,761			178,933		408,596
Less: Noncontrolling interests		417		1,360			894		3,019
Net income attributable to common shareholders	$	104,546	$	155,401		$	178,039	$	405,577
Earnings per share attributable to common shareholders:
Basic earnings per share	$	.65	$	.97		$	1.11	$	2.49
Diluted earnings per share	$	.64	$	.96		$	1.10	$	2.47
Average shares outstanding during period – Basic		160,767,790		160,839,120			160,698,541		162,627,269
Average shares outstanding during period – Diluted		162,744,788		161,755,586			162,378,082		164,272,066
Cash dividends per common share	$	.25	$	.25		$	.50	$	.50
BUSINESS SEGMENT INFORMATION BY INDUSTRY
(Unaudited)
	Three Months Ended December 31,					Six Months Ended December 31,
(Dollars in thousands)	2009		2008			2009		2008
Net sales
Industrial:
North America	$	847,208	$	993,040		$	1,630,293	$	2,100,117
International		932,057		1,042,741			1,782,307		2,265,933
Aerospace		400,551		473,667			817,407		952,140
Climate & Industrial Controls		174,892		179,208			361,866		435,154
Total	$	2,354,708	$	2,688,656		$	4,591,873	$	5,753,344
Segment operating income
Industrial:
North America	$	114,435	$	107,615		$	190,606	$	268,101
International		82,636		115,122			144,459		318,074
Aerospace		41,026		69,658			94,172		137,806
Climate & Industrial Controls		6,144		(12,814	)		16,641		2,685
Total segment operating income		244,241		279,581			445,878		726,666
Corporate general and administrative expenses		31,472		42,372			57,774		82,746
Income from operations before interest expense and other		212,769		237,209			388,104		643,920
Interest expense		25,029		30,307			50,752		58,403
Other expense		45,505		7,669			81,088		27,896
Income before income taxes	$	142,235	$	199,233		$	256,264	$	557,621

PARKER HANNIFIN CORPORATION – DECEMBER 31, 2009

CONSOLIDATED BALANCE SHEET

(Unaudited)

	December 31,
(Dollars in thousands)	2009			2008
Assets
Current assets:
Cash and cash equivalents	$	233,899		$	261,990
Accounts receivable, net		1,368,449			1,682,338
Inventories		1,232,979			1,519,651
Prepaid expenses		98,989			69,498
Deferred income taxes		124,182			145,131
Total current assets		3,058,498			3,678,608
Plant and equipment, net		1,842,750			1,888,023
Goodwill		2,948,304			2,884,187
Intangible assets, net		1,254,982			1,236,724
Other assets		689,655			427,649
Total assets	$	9,794,189		$	10,115,191
Liabilities and shareholders’ equity
Current liabilities:
Notes payable	$	389,715		$	1,022,112
Accounts payable		692,721			751,942
Accrued liabilities		680,450			777,462
Accrued domestic and foreign taxes		153,152			116,183
Total current liabilities		1,916,038			2,667,699
Long-term debt		1,554,088			1,882,693
Pensions and other postretirement benefits		1,258,258			480,561
Deferred income taxes		186,493			216,131
Other liabilities		241,526			213,970
Shareholders’ equity		4,552,027			4,564,109
Noncontrolling interests		85,759			90,028
Total liabilities and equity	$	9,794,189		$	10,115,191
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
	Six Months Ended December 31,
(Dollars in thousands)	2009			2008
Cash flows from operating activities:
Net income	$	178,933		$	408,596
Depreciation and amortization		189,937			175,885
Share incentive plan compensation		37,060			28,451
Net change in receivables, inventories, and trade payables		155,231			72,151
Net change in other assets and liabilities		79,808			(250,577	)
Other, net		(34,719	)		10,009
Net cash provided by operating activities		606,250			444,515
Cash flows from investing activities:
Acquisitions (net of cash of $24,191 in 2008)		—			(705,128	)
Capital expenditures		(61,232	)		(174,391	)
Proceeds from sale of plant and equipment		5,665			10,550
Other, net		(14,310	)		(2,973	)
Net cash (used in) investing activities		(69,877	)		(871,942	)
Cash flows from financing activities:
Net (payments for) common share activity		(3,973	)		(430,080	)
Net (payments for) proceeds from debt		(399,933	)		911,428
Dividends		(80,363	)		(81,331	)
Net cash (used in) provided by financing activities		(484,269	)		400,017
Effect of exchange rate changes on cash		(5,816	)		(36,648	)
Net increase (decrease) in cash and cash equivalents		46,288			(64,058	)
Cash and cash equivalents at beginning of period		187,611			326,048
Cash and cash equivalents at end of period	$	233,899		$	261,990

EX-99.2

Parker Hannifin Corporation

Quarterly Earnings Release

2nd Quarter FY 2010

January 19, 2010

Exhibit 99.2

Slide 2

Forward-Looking Statements

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 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 recession,and

growth, innovation and global diversification 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: 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; uncertainties surrounding timing, successful completion or integration of acquisitions;

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

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, 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.

Slide 3

Non-GAAP Financial Measure

This presentation reconciles sales amounts reported in accordance

with U.S. GAAP to sales amounts adjusted to remove the effects of

acquisitions made within the prior four quarters as well as the effects

of currency exchange rates on sales. The effects of acquisitions and

currency exchange rates are removed to allow investors and the

company to meaningfully evaluate changes in sales on a comparable

basis from period to period.

Slide 4

Discussion Agenda

CEO 2   Quarter Highlights

Key Performance Measures & Outlook

Questions & Answers

CEO Closing Comments

nd

Slide 5

Second Quarter FY10 Highlights

Indicative

Signs

of Industrial Markets Improvement:

Industrial

Orders Improved Sequentially From Q1 FY10

Continued

Strong

Cash

Flow:

Operating

Cash

Flow/Sales

of

14.7%

Continued

Inventory

Reduction:

$33M

in

Q2

FY10;

$287M

Y-o-Y

Continued

Debt

Reduction:

$203M

in

Q2

FY10;

$1B

Y-o-Y

Continued

Reduction

in

Leverage:

Debt

to

Total

Capital

Ratio

Reduced to 29.9% (gross) or 27.3% (net of cash)

Operating

Margin

Improvement:

Sequential

Quarter

Improvement

to 10.4% from 9.0% in Q1 FY10

Continued

Cost

Control:

Impressive

Decremental

Marginal

Return

on Sales of 10.6% (includes the effects of Acquisitions, Realignment

and Inventory Reductions)

Slide 6

Financial Highlights

Diluted Earnings per Share

2   Quarter

$.64

$.96

$1.10

$2.47

$.00

$.50

$1.00

$1.50

$2.00

$2.50

$3.00

Q2 FY10

Q2 FY09

YTD10

YTD09

nd

Slide 7

Influences

on

2

Quarter

Earnings

Diluted Earnings Per Share Decreased Y-o-Y as a

Result of:

Decreased Revenues (12.4%) Due To Global Recession

and Decline In Nearly All Markets

Increased Other Expense: $8M Due to Asset Write-

Downs

Offset by:

Reduced SG&A Expenses of $27M Due To Tight

Budgetary Control and Lower Incentive Compensation

Lower Interest Expense: $5M Due to Less Debt

Outstanding

Lower Taxes Due to Decreased Operating Income;

Higher Tax Rate Due to Normalized R&D Tax Credits

nd

Slide 8

Financial Highlights

Sales

–

2

nd

Quarter

Dollars in millions

FY2010

%

Change

FY2009

Sales

As reported

2,355

$

(12.4)%

2,689

$  

Acquisitions

7

0.3 %

Currency

102

3.8 %

Adjusted Sales

2,246

$

(16.5)%

2nd Quarter

Slide 9

Segment Reporting

Industrial North America

Dollars in millions

FY2010

%

Change

FY2009

Sales

As reported

847

$   

(14.7)%

993

$      

Acquisitions

4

0.4 %

Currency

7

0.7 %

Adjusted Sales

836

$   

(15.8)%

Operating Margin

As reported

114

$   

108

$      

  % of Sales

13.5 %

10.8 %

2nd Quarter

Slide 10

Segment Reporting

Industrial International

Dollars in millions

FY2010

%

Change

FY2009

Sales

As reported

932

$   

(10.6)%

1,043

$   

Acquisitions

3

0.3 %

Currency

87

8.3 %

Adjusted Sales

842

$   

(19.2)%

Operating Margin

As reported

83

$     

115

$      

  % of Sales

8.9 %

11.0 %

2nd Quarter

Slide 11

Segment Reporting

Aerospace

Dollars in millions

FY2010

%

Change

FY2009

Sales

As reported

401

$   

(15.4)%

474

$      

Acquisitions

Currency

3

0.6 %

Adjusted Sales

398

$   

(16.0)%

Operating Margin

As reported

41

$     

70

$        

  % of Sales

10.2 %

14.7 %

2nd Quarter

Slide 12

Segment Reporting

Climate & Industrial Controls

Dollars in millions

FY2010

%

Change

FY2009

Sales

As reported

175

$   

(2.4)%

179

$      

Acquisitions

Currency

5

2.6 %

Adjusted Sales

170

$   

(5.0)%

Operating Margin

As reported

6

$       

(13)

$       

  % of Sales

3.5 %

(7.2)%

2nd Quarter

Slide 13

Parker Order Rates

Excludes Acquisitions & Currency

3-month year-over-year comparisons of total dollars, except Aerospace

Aerospace is calculated using a 12-month moving average

DEC '09

SEPT '09

DEC '08

SEPT '0

Total Parker

7 %

-    

25 %

-  

20 %

-   

1 %

+    

Industrial North America

3 %

-    

27 %

-  

18 %

-   

2 %

+    

Industrial International

0.0%

25 %

-  

28 %

-   

4 %

-     

Aerospace

27 %

-  

23 %

-  

2 %

+    

9 %

+    

Climate & Industrial Controls

6 %

+   

17 %

-  

28 %

-   

5 %

+    

Three Month Rolling at Period End

Slide 14

Balance Sheet Summary

Cash

Working capital

-

Inventory

-

Accounts receivable

-

Accounts payable

Slide 15

Strong Cash Flow

Cash from Operating Activities

1   Half FY10

$606

$445

$0

$100

$200

$300

$400

$500

$600

$700

$800

YTD FY10

YTD FY09

st

Slide 16

Financial Leverage

29.9% 

Debt to Debt Equity

(27.3% net Debt)

Slide 17

FY 2010  Earnings Outlook Assumptions

Segment Sales & Operating Margins

FY 2010 Sales change versus FY 2009

Industrial North America

(6.3)%

--

(10.3)%

Industrial International

(1.4)%

--

(6.4)%

Aerospace

(7.9)%

--

(8.7)%

Climate & Industrial Controls

(4.3)%

--

(6.7)%

FY 2010 Operating margin percentages

Industrial North America

12.6 %

--

12.4 %

Industrial International

8.8 %

--

8.4 %

Aerospace

11.4 %

--

11.1 %

Climate & Industrial Controls

6.2 %

--

5.6 %

Slide 18

FY 2010 Earnings Outlook Assumptions

below Operating Margin (+/-

3.0%)

Corporate Admin

$142M

Interest Expense

$101M

Other Expense (Inc.) 

$150M

Total

$393M

Tax Rate

29 %

Slide 19

Earnings Outlook –

FY10

Low

High

Diluted earnings per share

$ 2.40

$ 2.80

Slide 20

Questions & Answers...

Appendix

Income Statement

2  

Quarter FY2010

1   Half FY2010

nd

st

Slide 22

Income Statement –

2   Quarter

Quarter

Dollars in millions

% of Sales

% of Sales

Net Sales

2,354.7

$  

100.0 %

2,688.6

$  

100.0 %

Cost of sales

1,869.5

79.4 %

2,121.4

78.9 %

Gross profit

485.2

20.6 %

567.2

21.1 %

S, G & A

309.8

13.2 %

337.2

12.5 %

Interest expense

25.0

1.1 %

30.3

1.1 %

Other expense, net

8.1

.3 %

.5

.0 %

Income before taxes

142.3

6.0 %

199.2

7.5 %

Income taxes

37.3

1.6 %

42.5

1.6 %

Net income

105.0

$     

4.4 %

156.7

$     

5.9 %

Less: Noncontrolling interests

.4

$           

1.3

$         

.1 %

Net income attributable to common

shareholders

104.6

$     

4.4 %

155.4

$     

5.8 %

FY 2010

FY 2009

nd

Slide 23

Income Statement –

1st Half

Total Year

Dollars in millions

% of Sales

% of Sales

Net Sales

4,591.9

$  

100.0 %

5,753.3

$  

100.0 %

Cost of sales

3,670.4

79.9 %

4,458.6

77.5 %

Gross profit

921.5

20.1 %

1,294.7

22.5 %

S, G & A

611.7

13.3 %

669.9

11.6 %

Interest expense

50.8

1.1 %

58.4

1.0 %

Other expense, net

2.7

.1 %

8.8

.2 %

Income before taxes

256.3

5.6 %

557.6

9.7 %

Income taxes

77.3

1.7 %

149.0

2.6 %

Net income

179.0

$     

3.9 %

408.6

$     

7.1 %

Less: Noncontrolling interests

.9

$           

3.0

$         

.1 %

Net income attribituable to common

shares

178.1

$     

3.9 %

405.6

$     

7.0 %

FY 2010

FY 2009