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Report No. : |
347688 |
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Report Date : |
03.11.2015 |
IDENTIFICATION DETAILS
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Name : |
PARKER-HANNIFIN CORPORATION |
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Registered Office : |
6035 Parkland Blvd, Cleveland, OH 44124 |
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Country : |
United States |
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Financials (as on) : |
2015 |
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Date of Incorporation : |
31.12.1938 |
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Legal Form : |
Public Company (NYSE = PH) |
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Line of Business : |
Subject is manufactures motion and control technologies and systems
for various mobile, industrial, and aerospace markets worldwide. |
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No. of Employee : |
55,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at Purchasing Power Parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.
In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.
Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.
The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.
Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008.
The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP.
Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.
In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.
In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.
In December 2012, the Federal Reserve Board (Fed) announced
plans to purchase $85 billion per month of mortgage-backed and Treasury
securities in an effort to hold down long-term interest rates, and to keep
short term rates near zero until unemployment dropped below 6.5% or inflation
rose above 2.5%. In late 2013, the Fed announced that it would begin scaling
back long-term bond purchases to $75 billion per month in January 2014 and
reduce them further as conditions warranted; the Fed ended the purchases during
the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and
continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since
before the global recession began; inflation stood at 1.7%, and public debt as
a share of GDP continued to decline, following several years of increase.
|
Source
: CIA |
PARKER-HANNIFIN
CORPORATION
Address: 6035 Parkland Blvd,
Cleveland, OH 44124 - USA
Telephone: +1
216-896-3000
Fax: +1 216-896-4000
Website: www.parker.com
Corporate ID#: 175441
State: Ohio
Judicial form: Public Company (NYSE = PH)
Date founded: 12-31-1938
Stock: As
of 07-31-2015, 138,418,792 shares issued outstanding
Value: USD
0.50= par value
Name of manager: Thomas
L. WILLIAMS
Business:
Parker-Hannifin Corporation manufactures motion and control technologies
and systems for various mobile, industrial, and aerospace markets worldwide.
Its Industrial segment provides pneumatic and electromechanical components
and systems; filters, systems, and instruments to monitor and remove
contaminants from fuel, air, oil, water, and other liquids and gases;
connectors, which control, transmit, and contain fluid; hydraulic components
and systems for builders and users of industrial and mobile machinery and
equipment; critical flow components for process instrumentation, healthcare,
and ultra-high-purity applications; and static and dynamic sealing devices.
This segment sells its products to original equipment manufacturers and
their replacement markets in manufacturing, transportation, and processing
industries. The company’s Aerospace segment offers flight control, hydraulic,
fuel, fluid conveyance, and engine systems and components for commercial and
military airframe and engine programs.
It also provides electronics thermal management heat rejection systems,
and single-phase and two-phase heat collection systems for radar, ISAR, and
power electronics. This segment markets its products directly to original
equipment manufacturers and end users in the commercial and military aerospace
markets. Its Climate & Industrial Controls segment offers systems and
components primarily for use in the mobile and stationary refrigeration, and
air conditioning industry; and in fluid control applications in various
industries, such as processing, fuel dispensing, beverage dispensing, and
mobile emissions. This segment serves original equipment manufacturers and
their replacement markets.
The company markets its products through direct-sales employees,
independent distributors, and sales representatives.
Parker-Hannifin Corporation was founded in 1918 and is headquartered in
Cleveland, Ohio.
Office of the Foreign
Assets Control (OFAC):
The company is not listed on the OFAC list.
The Specially Designated Nationals (SDN) List is a publication of OFAC
which lists individuals and organizations with whom United States citizens and
permanent residents are prohibited from doing business.
EIN: 34-0451060
Staff: 55,000
Operations & branches:
At the headquarters, we
find a large factory, warehouse and office, owned.
The Company maintains
numerous branches in the U.S. including the one located:
30240 Lakeland Blvd
Wickliffe, OH 44092
Shareholders:
As of 06-30-2015, 93% of
the stock is held by institutional and mutual fund owners including:
|
Capital World Investors |
9.22% |
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Vanguard Group, Inc. (The) |
5.99% |
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Longview Partners (Guernsey) LTD |
4.63% |
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Vulcan Value Partners, LLC |
4.63% |
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State Street Corporation |
4.58% |
Management:
Thomas L. WILLIAMS has been the Chief Executive Officer of
Parker-Hannifin Corporation since February 1, 2015.
Mr. Williams served as an Executive Vice President at Parker-Hannifin
Corporation from August 15, 2008 to February 1, 2015 and served as its an
Operating Officer from November 2006 to February 1, 2015. Mr. Williams served
as a Senior Vice President of Parker Hannifin Corporation from October 25, 2006
to August 2008; President of Parker Instrumentation Group since March 2005 and
Vice President from March 2005 to October 25, 2006.
He served as a Vice President of Operations for the Hydraulics Group at
Parker Hannifin Corporation from November 2003 to February 2005.
He joined Parker Hannifin in 2003. Prior to that, he served at General
Electric Company from 1981 to 2003 and served a number of key management
positions for four different business groups: GE Capital, Aircraft Engines,
Lighting and Locomotives. He served as a General Manager of multi-billion dollar
businesses of G.E. He served as General Manager of Global Services of GE
Transportation Systems from October 2002 to November 2003.
He has been a Director of Chart Industries Inc., since May 20, 2008 and
Parker-Hannifin Corporation since January 21, 2015.
He served as General Manager of Global Sourcing and Components of GE
Lighting from November 1999 to October 2002.
Mr. Williams holds a B.S. degree in Mechanical Engineering from Bucknell
University and an MBA from Xavier University.
Lee C. BANKS has been the President and Chief Operating Officer of
Parker- Hannifin Corporation since February 1, 2015.
Mr. Banks served as Executive Vice President of Parker-Hannifin
Corporation from August 15, 2008 to February 1, 2015 and served as its
Operating Officer from November 2006 to February 1, 2015. Mr. Banks served as
the President of Worldwide Hydraulics Group of Parker Hannifin Corporation from
October 1, 2003 to October 25, 2006. He served as the Vice President of Parker
Hannifin Corporation from October 2001 to November 2006, Senior Vice President
from November 2006 to August 2008 and its President of the Instrumentation
Group from July 2001 to October 1, 2003. He served as the Vice President of
Operations for thelimate & Industrial Controls Group at Parker Hannifin
Corp. from January 2001 to June 2001;
General Manager of the Skinner Valve Division from August 1997 to December
2000; and General Manager of the Fluidex Division from January 1997 to July
1997.
He has been a Director of Parker-Hannifin Corporation since January 21,
2015. Mr. Banks has been an Independent Director at Nordson Corporation since
February 2010.
Mr. Banks holds a Bachelor of Arts from Depauw University in economics
and MBA from Chicago's Keller Graduate School of Management.
Jon P. MARTEN is Vice
President and CFO.
Subsidiaries &Partnership: Numerous subsidiaries in the
U.S. and worldwide.
On attachment:
- 10K 2015 (fiscal year
ending July 2015)
On October 22, 2015, Parker-Hannifin Corporation announced unaudited
consolidated earnings results for the first quarter ended September 30, 2015.
For the quarter, the company reported net sales of $2,869,348,000 against
$3,269,932,000 a year ago. Income before income taxes was $275,649,000 against
$396,635,000 a year ago. Total segment operating income was $416,046,000
against $519,390,000 a year ago. Net income attributable to common shareholders
was $194,978,000 against $280,089,000 a year ago. Diluted earnings per share
was $1.41 against $1.85 a year ago. Adjusted earnings per diluted share was
$1.52 against $1.89 a year ago. Adjusted segment operating income $437,834,000.
Net cash provided by operating activities was $4,968,000 against $260,874,000 a
year ago. Capital expenditures was $38,681,000 against $54,709,000 a year ago.
For the fiscal year ending June 30, 2016, the company has revised
earnings guidance for earnings from continuing operations to the range of $5.30
to $5.90 per share, or $5.80 to $6.40 per share on an adjusted basis.
Fiscal year 2016 guidance is adjusted for expected business realignment
expenses of approximately $0.50 per share, of which $0.30 per share relates to
the company’s simplification initiatives.
Full year tax rate is projected to be 29%.
Banks: JP Morgan Chase Bank
Legal filings
& complaints: Several cases pending in
various Courts
Secured debts
summary (UCC): Several
Trade references:
Date reported: October 2015
High credit: USD 200,000
Now owing: 0
Past due: 0
Last purchase: September 2015
Line of business: Office supply
Paying status: On terms
Date reported: October 2015
High credit: USD 60,000,000+
Now owing: 0
Past due: 0
Last purchase: September 2015
Line of business: Payroll
Paying status: As agreed
Date reported: October 2015
High credit: USD 12,000
Now owing: 0
Past due: 0
Last purchase: September 2015
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
National Credit Bureaus
gave a satisfying credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made on due date.
International
credit history:
Payments of imports are currently on days beyond terms.
Other comments:
The Company maintains a
regular business.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.48 |
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|
1 |
Rs.101.06 |
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Euro |
1 |
Rs.72.22 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.