Engineering Your Success
|Traded as||NYSE: PH
S&P 500 Component
|Industry||Motion and control technologies|
|Founded||1918, Cleveland, Ohio, USA|
|Founders||Arthur L. Parker|
|Headquarters||Mayfield Heights, Ohio, United States|
|Number of locations||311 Manufacturing sites|
|Key people||Donald E. Washkewicz (Chairman, CEO & President)|
|Revenue||US$13.0 billion (FY 2013)|
|Operating income||US$1.37 billion (FY 2013)|
|Net income||US$948.4 million (FY 2013)|
|Total assets||US$12.54 billion (FY 2013)|
|Total equity||US$5.74 billion (FY 2013)|
Parker Hannifin Corporation originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio in Greater Cleveland (with a Cleveland mailing address). The company was founded in 1918, and has been publicly traded on the NYSE since December 9, 1964. Parker Hannifin is one of the largest companies in the world in motion control technologies including aerospace, climate control, electromechanical, filtration, fluid and gas handling, hydraulics, pneumatics, process control, and sealing and shielding. Parker employs approximately 58,000 people globally.
The company is ranked 211 in the Fortune 500.
Parker is divided into seven operating groups with service to 55 countries in six continents.
- Fluid Connectors
- Engineered Materials
- 1918: Parker Appliance Company is founded by Arthur L. Parker.
- 1919: On a promotional trip to Boston, the truck and trailer carrying the company's entire inventory blows a tire, destroying all of its inventory. Parker Appliance Company became bankrupt, and its founder returned to an engineering post at a Nickel Plate Road plant, but vowed to start again.
- 1924: Arthur L. Parker saves and restarts the Parker Appliance Company and the pneumatic/hydraulic components division succeeded by serving automotive and aviation customers.
- 1927: Parker's reputation for producing reliable, high pressure connections leads aviator Charles Lindbergh to specify Parker fittings for the Spirit of St. Louis' historic first Atlantic crossing.
- 1935: In the midst of the Depression, optimistic Arthur Parker buys a 500,000-square-foot (42,000 m2) Cleveland auto plant from Hupp Motor Car Company to house his 38-employee Company.
- 1939: Parker Appliance sales reached $3 million.
- 1943: Parker employs 5,000 Clevelanders, all in defense production.
- 1945: Company founder Arthur L. Parker dies; World War II's end halts defense contracts. With no industrial business, the Company faces near liquidation. Founder's wife, Helen Parker, refuses to give up; hires new management which gradually rebuilds industrial business. Son Patrick S. Parker eventually takes control of company.
- 1953: Parker makes its first acquisition, the Synthetic Rubber Products Company in Los Angeles, California, USA.
- 1957: Acquisition era is underway. With the acquisition of Hannifin Corporation come new cylinder and valve products and a new corporate name: Parker Hannifin Corporation.
- 1960: New International Division formed to market Parker products abroad.
- 1964: Shares of Parker Hannifin stock (NYSE: PH) are traded on the New York Stock Exchange for the first time.
- 1966: Parker Hannifin enters Fortune 500 listing of top companies.
- 1969: Parker has operations in 10 countries in Europe and Latin America. Pat Parker, the founder’s son, is elected President of Parker and Parker products land on the moon with American astronaut Neil Armstrong.
- 1976: Parker introduces a new company logo.
- 1977: Parker sales reached $500 million.
- 1978: Parker strengthens its position in aerospace market with the acquisition of the Bertea Corporation which lays the foundation for future leadership in flight controls, hydraulics, and fuel management systems.
- 1981: Parker sales reached $1.1 billion.
- 1983: Parker forms joint venture in China.
- 1988: Marking its 70th anniversary, Parker makes seven acquisitions and exceeds $2 billion in sales.
- 1992: Parker globalizes its business by forming worldwide product groups.
- 1997: Parker moves to brand new World Headquarters building in Mayfield Heights, Ohio; a suburb of Cleveland.
- 1998: The first retail store, ParkerStore, opens with the objective to reach the aftermarket and gain a greater customer share.
- 2000: Parker sales reached $5.4 billion. The company merged with Commercial Intertech, its largest deal at the time and completed four other acquisitions.
- 2001: Parker introduced the Win Strategy with the single goal to raise the performance of the company to a higher level. In Europe Parker acquired several large companies in the fluid power business from 1997 and forward, such as Commercial Hydraulics and VOAC Hydraulics.
- 2005: Patrick S. Parker dies. Parker sales reached $8.2 billion, the Company acquired six companies, and was awarded the hydraulic subsystem for the new Boeing 787 Dreamliner passenger jet.
- 2006: Parker had made 210 strategic acquisitions since the Company's founding.
- 2007: Parker opened its 1,000 ParkerStore.
- 2011: Parker reaches record sales of $12.3 billion.
Countries of Operation
In 2006, Parker Hannifin Corporation and Get Nitrogen Institute, a non-profit organization, teamed up to test and promote the use of nitrogen filled rubber tires. By doing this, it has been found that nitrogen-filled tires hold their air pressure for longer periods of time after being inflated. However, inflating a tire with air requires only an ordinary tire pump, available at nearly any gasoline filling station, while nitrogen inflation equipment is less common. Additionally, some drivers incorrectly believe that putting ordinary air into a nitrogen-filled tire is dangerous, and may unnecessarily drive on underinflated tires to reach a location that can fill tires with nitrogen. Therefore, the question of whether tires that have been filled with nitrogen or with air are more likely to be underinflated may be disputed.
Advantages to keeping tires properly inflated (with either air or nitrogen) include increasing the life of the tire itself and decreasing the amount of discarded tires filling up landfills. Furthermore, it was found that having properly inflated tires improves fuel efficiency by 4 percent.
RunWise Advanced Series Hybrid Drive System
In 2010, Parker Hannifin, in a partnership with Autocar, a leading manufacturer of commercial vehicles and class 8 trucks, delivered hydraulic hybrid-powered refuse vehicles to three South Florida municipalities. The Autocar E3 refuse vehicles feature Parker’s RunWise advanced series hybrid drive system, which dramatically increases fuel savings and lowers emissions while improving drivability and performance. The RunWise Advanced Series Hybrid Drive achieves fuel savings of up to 50% by decoupling the engine from the rear axle recovering energy normally lost during braking. Parker’s RunWise replaces a refuse truck’s conventional drive train with a series hybrid drive – combining the flexibility and responsiveness of hydrostatic operation for low and medium speeds with the unsurpassed efficiency of mechanical operation for highway speeds. Placed on the United States Environmental Protection Agency (EPA) National Clean Diesel Campaign’s Emerging Technologies List in 2011, it is the only drivetrain on the list. These vehicles provide fuel savings, reduced emissions, less brake and engine wear, enhanced drivability, and cleaner and greener communities. Waste collection fleet owners are excited about RunWise and its ability to increase their productivity and profitability all without requiring changes to driver behavior.
Parker Aerospace is a global leader in hydraulic, fuel, flight control, pneumatic, electronics cooling, and fluid conveyance components and systems and related electronic controls for aerospace and other high-technology markets. Its products are used on aircraft manufactured throughout the world today, including commercial transports, military fixed-wing planes, regional and business aircraft, helicopters, missiles, and unmanned aerial vehicles. Based in Irvine, California, Parker Aerospace operates 39 facilities in the Americas, Europe, and Asia. The latest programs include the COMAC C919, Rolls-Royce Trent XWB engine, Bombardier CSeries, Embraer Legacy 500/450, Bombardier widebody aircraft, MRJ, Gulfstream G650, Model 850 Citation Columbus and Airbus A350 XWB.
Greener aircraft and reduced emissions
Parker Aerospace is a longtime Airbus supplier with special competencies in multifunctional system integration. Parker is partnering with Airbus to develop fuel cell technology as an alternative energy source for on-ground and in-flight electrical power supply. Within this partnership, Airbus will be responsible for the overall aircraft system architecture and technology integration into the aircraft, and Parker will supply the multifunctional fuel cell system and manage different subsystem suppliers. A fuel cell is a device which transforms the energy contained in hydrogen and oxygen into electricity through a direct chemical conversion at a low temperature level without moving parts. The exhaust product is water, and in the case of an air-breathing system, oxygen depleted air. The electricity produced by fuel cells is cleaner and more efficient than combustion engines. In addition, the water and the oxygen depleted air (inert gas) can be used on the airplane to substitute the water and inerting systems.
The objective of the cooperation is the development of a technology demonstrator followed by a joint flight test campaign for the middle of the decade, including operational and infrastructural tests. With Parker Aerospace involved in the project from this earliest phase, industrialisation can be considered throughout the development of the process, rather than at the end. Airbus considers fuel cell technology as a key contributor to meeting the ACARE 2020 goals, which foresee the reduction of CO2 emissions by 50%, NOx emissions by 80% and noise by 50%.
Boeing 737 incidents
In 1995, it was discovered that failures in a servo unit supplied by Parker Hannifin to Boeing for use in their 737 aircraft may have contributed to several incidents, including that of United Airlines Flight 585 and USAir Flight 427.
In 2004, a Los Angeles jury ordered Parker Hannifin to pay US$43M to the plaintiff families of the 1997 SilkAir Flight 185 crash in Indonesia. Parker Hannifin subsequently appealed the verdict, which resulted in an out of court settlement for an undisclosed amount. The Indonesian Transportation Safety Board could not determine the cause of the crash due to the near total lack of physical evidence and complete destruction,  this in contrast to the National Transportation Safety Board however, which disagreed and determined that the crash was caused, possibly intentionally, by the pilot.
The FAA ordered an upgrade of all Boeing 737 rudder control systems by November 12, 2002. Parker argued that the components they supplied were not at fault, citing that the product has one of the safest records in its class, but the FAA directive went through regardless.
On 18 January 2013, the F-35B variant of the Lockheed Martin F-35 Lightning II was grounded after the failure of a fueldraulic line in the aircraft's propulsion system that controls the exhaust vectoring system. This was in response to an incident on 16 January where the propulsion system experienced a fueldraulic failure prior to a conventional takeoff. The precautionary flight suspension is to preserve safety while providing time to understand the origin of the failure of the propulsion fueldraulic line. The failure was found to be a manufacturing defect by Parker Hannifin's Stratoflex division.
- "Parker-Hannifin Corporation (PH)". Yahoo! Finance.
- "CERTIFICATE OF PROPERTY INSURANCE." Parker Hannifin. March 28, 2012. Retrieved on December 25, 2012. "Parker Hannifin Corporation 6035 Parkland Blvd Cleveland OH 44124-4141 USA"
- "2010 CENSUS - CENSUS BLOCK MAP: Mayfield Heights city, OH." (Archive) U.S. Census Bureau. Retrieved on December 25, 2012.
- Parker Decades History Video, http://video.parker.com/Parker_Videos/Corporate/ParkerHistory/EN/index.html
- Mal Gormley. "Will Climate Change Challenge BizAv?". Aviation Week. Retrieved 2008-11-16.
- Robert J. Boser. "What is the status of the solution to the B-737 rudder design defect?". airlinesafety.com. Retrieved 2008-11-18.
- "Pittsburgh disaster adds to 737 doubts". Seattle Times. 1996. Retrieved 2008-11-17.
- Valerie Chew (September 30, 2009). "Crash of SilkAir Flight MI 185". National Library Board. Retrieved May 26, 2012.
- SilkAir 185 - Pilot Suicide? (Documentary). National Geographic. 2007.
- "Remembering the Musi – SilkAir Flight MI 185 Crash Victim Identification". Annals Academy of Medicine 36 (10): 866. 2007.
- "Airworthiness Directives; Boeing Model 737 Series Airplanes". FAA. Retrieved 2008-11-17.
- F-35B grounded after fueldraulic line failure - Flightglobal.com, January 18, 2013
- "Engineers discover culprit behind F-35B fueldraulic line failure."
- "Stratoflex - Parker."