Parker-Hannifin Corporation is a leading worldwide full-line manufacturer of motion
control products, including fluid power systems, electromechanical controls and
related components. Fluid power involves the transfer and control of power through
the medium of liquid, gas or air, in hydraulic, pneumatic and vacuum applications.
Fluid power systems move and position materials, control machines, vehicles and
equipment and improve industrial efficiency and productivity.
Components of a simple fluid power system include one or more pumps which generate
pressure, one or more valves which control the fluid's flow, one or more actuators
which translate the pressure from the fluid into mechanical energy, one or more
filters to insure proper fluid condition and numerous hoses, couplings, fittings
and seals. Electromechanical control involves the use of electronic components
and systems to control motion and precisely locate or vary speed in automation
and aerospace applications. In addition to motion control products, the Company
also is a leading worldwide producer of fluid purification, fluid and fuel control,
process instrumentation, air conditioning, refrigeration, electromagnetic shielding
and thermal management products and systems.
Also, through Astron Buildings ('Astron'), the Company designs and manufactures
custom-engineered buildings and through Wynn Oil Company and its subsidiaries
(the 'Wynn's Specialty Chemical Group'), the Company develops, manufactures
and markets specialty chemical products and maintenance service equipment.
Motion control systems are used throughout industry in applications which include
moving materials; controlling machines, vehicles and equipment; and positioning
materials during manufacturing processes. Motion control systems contribute
to the efficient use of energy and improve industrial productivity.
The approximately 390,000 customers who purchase the Company's products are
found throughout virtually every significant manufacturing, transportation and
processing industries.
Major markets for products of the Fluid Connectors, Hydraulics, Automation
and Seal Groups of the Industrial Segment are agricultural machinery, analytical
instrumentation, automotive, construction machinery, electronic equipment, fabricated
metals, food production, industrial machinery, pulp and paper, machine tools,
marine, medical devices, mining, mobile equipment, chemicals, robotics, semi-conductor
equipment, telecommunications, textiles, transportation and every other major
production and processing industry. Major markets for products manufactured
by the Instrumentation Group of the Industrial Segment are power generation,
oil and gas exploration, petrochemical and chemical processing, pulp and paper,
and semi-conductor manufacturing.
Major markets for products of the Filtration Group of the Industrial Segment
are industrial machinery, mobile equipment, diesel engines, process equipment,
marine, aviation, environmental and semi-conductor manufacturing. Sales of Industrial
Segment products are made to original equipment manufacturers and their replacement
markets.
Aerospace Segment sales are made primarily to original equipment manufacturers
in the commercial, military and general aviation markets and to end users for
maintenance, repair and overhaul.
Products manufactured by the Climate & Industrial Controls Segment are
used principally in mobile air conditioning systems, industrial refrigeration
systems, residential and commercial air conditioning systems and equipment and
industrial fluid control markets. Sales of the Climate & Industrial Controls
Segment are made to original equipment manufacturers and their replacement markets.
Astron of the Other Segment produces pre-engineered single and multi-story
buildings that serve industries throughout Europe. The Wynn's Specialty Chemical
Group of the Other Segment develops and manufactures a wide variety of specialty
chemical car care products that are marketed to automobile service technicians
and consumers.
Competition. All aspects of the Company's business are highly competitive.
No single manufacturer competes with respect to all products manufactured and
sold by the Company and the degree of competition varies with different products.
In the Industrial Segment, the Company competes on the basis of product quality
and innovation, customer service, manufacturing and distribution capability,
and competitive price. The Company believes that, in most of the major markets
for its Industrial Segment products, it is one of the principal suppliers of
motion control systems and components. In the Aerospace Segment, the Company
has developed alliances with key customers based on the Company's advanced technological
and engineering capabilities, superior performance in quality, delivery, and
service, and price competitiveness, which has enabled the Company to obtain
significant original equipment business on new aircraft programs for its systems
and components and, thereby, obtain the follow-on repair and replacement business
for these programs. The Company believes that it is one of the primary suppliers
in the aerospace marketplace.
In the Climate & Industrial Controls Segment, the Company competes on the
basis of product quality and innovation, customer service, manufacturing and
distribution capability, and competitive price. The Company believes that it
is one of the principal suppliers in the climate and industrial controls marketplace.
In the Other Segment, the Company competes on the basis of product quality
and performance, strong brand recognition (Wynn's) and competitive price. The
Company believes that through Astron it is one of the primary suppliers of steel
buildings in Europe and through Wynn's it is one of the principal suppliers
of specialty chemicals and related services in the transportation marketplace.