<PAGE> 1
Filed by Parker-Hannifin Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Parker-Hannifin Corporation
Commission File No: 1-4982
SLIDES USED IN CONNECTION WITH INVESTOR AND SHAREHOLDER PRESENTATIONS MADE BY
PARKER IN CONNECTION WITH ITS PROPOSED MERGER WITH COMMERCIAL INTERTECH:
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Positioning Parker
To Move the World's Industries
[LOGO] GRESEN [LOGO] Parker [LOGO] Commercial
Intertech
2
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Today's Agenda:
* The Parker Path to Profitable Growth Duane Collins
* Parker & the Hydraulics Markets Don Washkewicz
* Strategic Fit & Win Strategy Don Washkewicz
* Parker Acquisition Record: Building Duane Collins
Shareholder Value
* Consolidation Outlook Duane Collins
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
3
<PAGE> 4
Today's Agenda
* The Parker Path to Profitable Growth
* Parker & the Hydraulics Markets
* Strategic Fit & Win Strategy
* Parker Acquisition Record: Building
Shareholder Value
* Consolidation Outlook
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
4
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PARKER PATH TO PROFITABLE GROWTH
[Graphic with overlapping circles]
[Top Circle]
Acquisitions/JVs
[Middle Circle]
FOCUSED OBJECTIVES
Premier customer service
Financial Performance
Profitable Growth
[Bottom Left Circle] [Bottom Right Circle]
Internal Global
growth expansion
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
5
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TOTAL PACKAGE IN MOTION & CONTROL
* GREATER INTERNAL & EXTERNAL SYNERGIES
* HIGHER MARGIN
[Graphic with overlapping boxes]
[upper left box] [upper right box]
Sealing Filtration
devices media
[middle box]
Hydraulic
Pneumatic
Electromechanical
[lower middle box]
Climate &
Industrial Control
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
6
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DIVERSE MARKETS, BALANCED GROWTH CYCLES
[Graphic with line in center of page and half circle above line on left side and
half circle below line on right side]
[Left Half Circle]
Automotive Electronics
Air Conditioning Heavy Duty Trucks
Semiconductors Refrigeration
Telecommunication Construction
Automation Power Generation
[Right Half Circle]
Machine Tools Rail Transit
Aerospace Mining
Rubber & Plastics Oil & Gas
Agriculture Paper
Metals
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
7
<PAGE> 8
THE PARKER PATH TO PROFITABLE GROWTH
* Global expansion: developing markets
<TABLE>
<CAPTION>
<S> <C>
- Follow the customer
- Set up entity>hire local nationals [Graphic with overlapping
circles]
- Establish inventory & trade [Top Circle]
* New Applications
- Progress to assembly
[Middle Circle]
- Launch manufacturing LONG-TERM GROWTH
- Build with joint ventures & acquisitions [Lower Left Circle] [Lower Right
*Strategic Acquisitions Circle]
- Secure leading market position *Global
Expansion
</TABLE>
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
8
<PAGE> 9
THE PARKER PATH TO PROFITABLE GROWTH
* Acquisitions must fit the model
- Our 8 Groups are THE TOTAL PACKAGE
for motion-control systems
* Acquisitions to add immediate value
- Strategic fit
- Market share
- Global extension
- Enhanced system capability
- Volume & profit growth
[Graphic With Overlapping Circles]
[Top left circle] [Top right circle]
Instrumentation Climate & Industrial
Controls
[Top left middle circle] [Top right middle circle]
Aerospace Automation
[Lower left middle circle] [Lower right middle circle]
Hydraulics Filtration
[Middle circle]
INCREMENTAL GROWTH
*Tech Transfer *New Products
*Systems
[Bottom left circle] [Bottom right circle]
Fluid Connectors Seals
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
9
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PARKER IS. . .
* The global leader in motion & control
- 1,000 + markets [Graphic depicting Parker's products]
- 100,000+ products
- 39,000 employees
- 7,500+ distributors
- 400,000+ customers
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
10
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PARKER IS. . .
* Decentralized
* Entrepreneurial
* Small-town operations
* Efficient & focused
* People-oriented
* Close to the customer
* Friendly consolidator
[Graph showing sales per average employee with
graphic of three Parker employees in background]
1995 approximately $117
1996 approximately $119
1997 approximately $125
1998 approximately $127
1999 approximately $129
(dollars in thousands)
Parker employees are our greatest strength. In 5
years they've doubled sales and quadrupled earnings.
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
11
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COMMERCIAL INTERTECH IS. . .
* A profitable industry leader [Graphic depicting employee
- $535 million in sales working on machinery]
* Global:
- 27 facilities in 7 countries
- Nearly 4,000 employees
- Domestic/International revenues split 50/50
* Three core businesses
- Hydraulics, Astron Building Systems, Metal Forming
* Major products are #1 or #2 in their markets
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
12
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GRESEN IS . . . [Graphic depicting employee working
on machinery]
* Profitable market leader
- $128 million in sales
* Nearly 1,000 employees
* Facilities in the U.S. & Brazil
* Major products #1, 2 or 3 in their markets
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
13
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* Don Washkewicz, President & COO
- Parker Hydraulics Group Overview
- The Hydraulics Markets
- Gresen & TEC Strategic Fit
- Our Win Strategy
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
14
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PARKER HYDRAULICS GROUP
* 11 Divisions
* 45 Manufacturing Facilities
- 14 States in U.S.A.
- 5 Countries in Europe
- Canada - Australia - Mexico - Brazil - China
* 45 Sales Offices
* 5300 Employees
* 900 Distributors
* 160 Direct Sales Managers
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
15
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PARKER HYDRAULICS PRODUCT BREADTH
[Graphic depicting Parker's products]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
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THE HYDRAULICS MARKETS
Market Segments
---------------
* $15 billion market & growing [Pie graph]
* Consolidation is the industry trend Aerospace $3 billion
* Global service Industrial $4 billion
* + Systems engineering Mobile $8 billion
* + 1-stop shopping
Competitive Advantage
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
17
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THE HYDRAULICS MARKETS
The market leader earns better margins
[Bar Graph showing relative size by sales volume for the following companies
from highest to lowest, indicating amounts attributable to Aerospace and to
Industrial & Mobile]
Parker + Gresen and TEC
Rexroth
Eaton-Vickers
Sauer Danfoss
Kayaba
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
18
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ACHIEVING A BETTER MARKET MIX
Without Gresen & TEC With Gresen & TEC
[Pie Graph] [Pie Graph]
Mobile 47% Mobile 65%
Industrial 53% Industrial 35%
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
19
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PARKER MOBILE SALES: PRE-DEALS
* $1 Billion +
* $1.5 Billion + w/Gresen & TEC
-----------------------------
[Pie Graph indicating relative size by sales of each category of products from
largest to smallest]
Fluid Connectors
Hydraulics
Filtration
All Other
- -Includes on-highway trucks [LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
20
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TEC & GRESEN STRATEGIC FIT
Friendly combination all-around
Parker TEC Gresen
------ --- ------
Culture: Engineering Engineering Engineering
- --------
Structure: Decentralized Decentralized Decentralized
- ----------
Focus: Motion-Control Mobile Hydraulics Mobile Hydraulics
- ------ Systems Systems Systems
Strengths: System solutions Pumps & Cylinders Valves
- ----------
Presence: Global U.S., Eur., Lat. Am U.S. & Lat. Am
- ---------
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
21
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GRESEN & TEC STRATEGIC FIT
* Minimal product overlap
- Fills product voids
* Cross-selling opportunities
* The total package
- Bigger systems capability
- One-stop shopping for customers
* Service: Enhanced global presence
* Synergies: Value + Growth
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
22
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GRESEN HYDRAULIC PRODUCTS
* Directional control valves
* Accessory valves
* Gear pumps & motors
* Electronic controls
[Graphic depicting bulldozer]
[Graphic depicting farming
machinery]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
23
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TEC HYDRAULIC PRODUCTS
* Gear pumps
* Large flow valves
* Electrohydraulics
* Telescoping cylinders
[Graphic depicting truck]
[Graphic depicting machinery]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
24
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MINIMAL PRODUCT OVERLAP: FILLS VOIDS
[Graph]
x Parker products/sales
- - Product void
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
OPEN LOOP PUMPS
- ---------------------------------------------------------------------------------------------------
Truck Truck Mobile - Mobile - Mobile - Mobile -
Fixed Variable Gear Vane Variable DC Power
Piston Piston Piston Units
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Forestry x -
- ---------------------------------------------------------------------------------------------------
Reach Stackers x - x
-
- ---------------------------------------------------------------------------------------------------
R.T.F.L./Telehandlers x x
x
- ---------------------------------------------------------------------------------------------------
Excavators x -
- ---------------------------------------------------------------------------------------------------
Wheel Loaders x - -
- ---------------------------------------------------------------------------------------------------
Body Builders/Truck Hydraulics x x x x
- ---------------------------------------------------------------------------------------------------
Truck Crane x x x
- ---------------------------------------------------------------------------------------------------
Waste Handling x x x x x
- ---------------------------------------------------------------------------------------------------
Aerial Devices x x x x x -
- ---------------------------------------------------------------------------------------------------
Lawn & Garden x
- ---------------------------------------------------------------------------------------------------
Fork Lifts x - -
x
- ---------------------------------------------------------------------------------------------------
Agriculture x -
- ---------------------------------------------------------------------------------------------------
</TABLE>
25
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MINIMAL PRODUCT OVERLAP: FILLS VOIDS
x Parker products/sales
- - Product void
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
VALVES
- ------------------------------------------------------------------------------------------------------------------------------------
Directional Directional
Auxiliary and LS greater than 260 - Directional CF Directional CF less than 260
Cartridge 320 bar greater than 260-320 bar LS less than 260 bar bar
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Forestry x x x x x
- ------------------------------------------------------------------------------------------------------------------------------------
Reach Stackers x x x x
- ------------------------------------------------------------------------------------------------------------------------------------
R.T.F.L./Telehandlers x x x x
- ------------------------------------------------------------------------------------------------------------------------------------
Excavators x x x x x
x
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Loaders x x x x
-
- ------------------------------------------------------------------------------------------------------------------------------------
Body Builders/Truck Hydraulics x x x
- ------------------------------------------------------------------------------------------------------------------------------------
Truck Crane x x x
- ------------------------------------------------------------------------------------------------------------------------------------
Waste Handling x x x x x
- ------------------------------------------------------------------------------------------------------------------------------------
Aerial Devices x x
- ------------------------------------------------------------------------------------------------------------------------------------
Lawn & Garden x x
- ------------------------------------------------------------------------------------------------------------------------------------
Fork Lifts x x
- ------------------------------------------------------------------------------------------------------------------------------------
Agriculture x - -
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
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<TABLE>
<CAPTION>
MINIMAL PRODUCT OVERLAP: FILLS VOIDS
x Parker products/sales
- - Product void
- -----------------------------------------------------------------------------------------------------------------------
MOTORS
LSHT Gear Axial Piston/ Axial Piston/ Radial Piston
Fixed Variable
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Forestry x x x
- -----------------------------------------------------------------------------------------------------------------------
Reach Stackers x x
- -----------------------------------------------------------------------------------------------------------------------
R.T.F.L./Telehandlers x x
- -----------------------------------------------------------------------------------------------------------------------
Excavators x x x
-
- -----------------------------------------------------------------------------------------------------------------------
Wheel Loaders x -
- -----------------------------------------------------------------------------------------------------------------------
Body Builders/Truck Hydraulics x
- -----------------------------------------------------------------------------------------------------------------------
Truck Crane
- -----------------------------------------------------------------------------------------------------------------------
Waste Handling x
- -----------------------------------------------------------------------------------------------------------------------
Aerial Devices x x - x
- -----------------------------------------------------------------------------------------------------------------------
Lawn & Garden x x
- -----------------------------------------------------------------------------------------------------------------------
Fork Lifts
- -----------------------------------------------------------------------------------------------------------------------
Agriculture x
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
-27-
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MINIMAL PRODUCT OVERLAP: FILLS VOIDS
<TABLE>
<CAPTION>
x Parker products/sales
- - Product void
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Steering Hydro- Electronics Remote Cylinders Cylinders Accumulators
Units statics Controls - Europe - N.A.
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Forestry x - x x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Reach Stackers x x x x x x
- ----------------------------------------------------------------------------------------------------------------------------
R.T.F.L./Telehandlers x - x x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Excavators x - x x - x x
- ----------------------------------------------------------------------------------------------------------------------------
Wheel Loaders x - x x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Body Builders/Truck x - x
Hydraulics
- ----------------------------------------------------------------------------------------------------------------------------
Truck Crane x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Waste Handling x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Aerial Devices x x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Lawn & Garden x - - x
- ----------------------------------------------------------------------------------------------------------------------------
Fork Lifts x - - x x x x
- ----------------------------------------------------------------------------------------------------------------------------
Agriculture x - - - x x
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
-28-
<PAGE> 29
CROSS-SELLING OPPORTUNITIES
* Common Customers
[Logo]
Grove Manlift
[Logo]
Ditch Witch
[Logo] [Logo]
John Deere Caterpillar
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
-29-
<PAGE> 30
CROSS-SELLING OPPORTUNITIES
* Uncommon Customers = Pull-through sales
[Logo] [Logo]
JLG Jerr-Dan
[Logo]
LEACH
Company
[Logo]
eXmark
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
30
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CROSS-SELLING OPPORTUNITIES
[Graphics depicting various machinery surround the text]
TARGET MARKETS
1. Forestry
2. Body Builders
3. Lawn & Garden
4. Aerial Devices
5. Wheel Loaders
6. Waste Handling
7. Truck Crane
8. Excavators
9. RTFL/Telehandlers
10. Reach Stackers
11. Fork Lifts
12. Agriculture
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
31
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THE TOTAL PACKAGE
* Bigger System Solutions
[Graphic depicting truck] [Graphics depicting products]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
32
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THE TOTAL PACKAGE
* Total Bill of Materials:
[Graphic depicting truck] Parker $ 7,000
TEC: 5,000
------ ---------
Total: $12,000
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
33
<PAGE> 34
THE TOTAL PACKAGE
* Total Bill of Materials:
[Graphic depicting truck] Parker: $20,000
TEC & GRESEN: 10,000
------------ --------
Total: $30,000
[Graphic depicting products]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
34
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ONE-STOP SHOPPING FOR CUSTOMERS
[Graph depicting value flow performance of Parker, TEC and Gresen]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
35
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ONE-STOP SHOPPING FOR CUSTOMERS
* Forestry market example:
[Graph]
[Graphic of Feller Buncher] [Graphic of Forwarder]
Feller Buncher Forwarder
[Grapic of Harvester] [Graphic of Skidder]
Harvester Skidder
Heavy Duty Mobile Mid-Duty Mobile Light Duty Mobile
Parker Parker, TEC & Gresen TEC & Gresen
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
36
<PAGE> 37
ENHANCED GLOBAL PRESENCE
* Delivering premier customer service
everywhere in the world
[Graphic: Map of world showing areas where Parker, Commercial
Intertech and Gresen service customers]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
37
<PAGE> 38
SYNERGIES = VALUE + GROWTH
* IMMEDIATE INTEGRATION SYNERGIES
- Purchasing leverage
- Combined information systems
- R&D coordination/rationalization
- Lower SG&A
- Reduced corporate & public company expenses
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
38
<PAGE> 39
SYNERGIES = VALUE + GROWTH
* FURTHER INTEGRATION SYNERGIES
- Low-cost manufacturing
- Global expansion
- Product rationalization
- Expanded distributor network
- Total system solutions
- Cross-selling extension
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
39
<PAGE> 40
SYNERGIES = VALUE + GROWTH
* $15-20 million annual savings with TEC, majority in first full fiscal
year (FY2001)
* TEC expected to be 10-15(cent)accretive in FY '01
* Gresen expected to be 3-5(cent)accretive in FY '01
* $120 million TEC tax-loss carry-forwards in future years
* WE ONLY COUNT WHAT WE KNOW: cross-selling, leverage, other gains not
included
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
40
<PAGE> 41
GRESEN & TEC STRATEGIC FIT
* Customers very favorable
* Complimentary expansion of all 3 portfolios
* Great cultural fit
* Critical mass & unique systems capability to win new business
* No better strategic fit in this market
* Real value creation for customers, employees & shareholders
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
41
<PAGE> 42
Duane Collins, Chairman & CEO
- - Parker Acquisition Record
- - Ideal Business Mix
- - Financial Capacity
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
42
<PAGE> 43
PARKER ACQUISITION RECORD
* We buy to build:
- With Gresen & TEC: 6 years, 45 acquisitions, added $1.8
billion in 1st-year sales
- These acquisitions ensure double-digit growth
* We achieve returns: Accretive
* We're reducing volatility with diversification and balanced mix
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
43
<PAGE> 44
<TABLE>
<CAPTION>
<S> <C> <C> <C>
THE IDEAL BUSINESS MIX
[Graphic of box] [Graphic of box] [Graphic of half circles]
AEROSPACE OEM/CARS INDUSTRIAL
20% MIN 10% MAX [left half circle] [right half circle]
- ------- -------
NA Int'l
50% 50%
</TABLE>
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
44
<PAGE> 45
THE IDEAL BUSINESS MIX
[Pie Graph]
OEM MRO
50% 50%
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
45
<PAGE> 46
WE HAVE FINANCIAL CAPACITY
* Post-deal credit ratings remain A and A-1
* Currently > $600 million of unused credit lines
* Debt-to-total capitalization ratio 31% versus 30-33% goal
* Cash from operations around 10% of sales
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
46
<PAGE> 47
GENERATING CASH ON RECORD PACE
[BAR CHART]
[ Veritcal Axis = Numerals 0 to 600 in Increments of 100] [Horizontal Axis =
Numerals 94 - 99 and 2K in Increments of 1]
[94 = $259] [95=$240] [96=$338] [97=$392] [98=$321] [99=$459] [2K=Est. $563]
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
47
<PAGE> 48
THE PARKER PATH TO PROFITABLE GROWTH
* The right combination of businesses
- Highly focused on motion & control
- Widely diversified markets
- One stop for total system solutions
[Graphic With Overlapping Circles]
[Top left circle] [Top right circle]
Instrumentation Climate & Industrial
Controls
[Top left middle circle] [Top right middle circle]
Aerospace Automation
[Lower left middle circle] [Lower right middle circle]
Hydraulics Filtration
[Middle circle]
INCREMENTAL GROWTH
*Tech Transfer *New Products
*Systems
[Bottom left circle] [Bottom right circle]
Fluid Connectors Seals
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
48
<PAGE> 49
INDUSTRY CONSLIDATION OPPORTUNITIES
* Industry remains fragmented, with many opportunities
* Parker intends to be the consolidator of choice
* We'll continue to create value via focused & profitable acquisitions
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
49
<PAGE> 50
A STAKE IN PARKER
"What you own in Parker is a piece of virtually everything that moves"
*Like investing in a well-rounded mutual fund [PHOTOGRAPH] Parker In Motion...
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
50
<PAGE> 51
GETTING WITH THE RIGHT GROUP
* 12-Month P/E Diversified Industrials: 23.8
* 12-Month P/E Heavy Machinery: 15.9
* Parker listed as DIVERSIFIED INDUSTRIAL by :
- S&P, Dow Jones, FTSE, NYSE
- Financial media
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
51
<PAGE> 52
HOW WE MATCH UP
* 3 years
[LINE GRAPH][HORIZONTAL AXIS- MONTHS DEPICTED BY ONE-LETTER
ABBREVIATIONS OVER THREE YEARS BEGINNING WITH MARCH, 1997. VERTICAL
AXIS - PERCENTAGES FROM -20% THROUGH +80% IN INCREMENTS OF 10. THREE
LINES RUN ACROSS THE GRAPH, ONE DEPICTS MACHINERY("MAC"), ONE DEPICTS
INDUSTRIAL DIVERSIFIED ("IDD") AND ONE DEPICTS PARKER HANNIFIN ("PH"). THE
FOLLOWING TABLES SHOW THE APPROXIMATE PLOTS DEPICTED BY THE CHART BY
MONTH]
<TABLE>
<CAPTION>
1997
MONTH PH MAC IDD
<S> <C> <C> <C>
M 3 4 2
A 1 0 -2
M 16 16 5
J 25 23 10
J 45 35 21
A 48 34 29
S 50 30 22
O 70 35 25
N 42 18 24
D 52 23 22
1998
MONTH PH MAC IDD
J 52 11 22
F 54 22 27
M 64 29 35
A 70 32 42
M 51 29 43
J 35 19 38
J 20 16 41
A 11 -2 30
</TABLE>
52
<PAGE> 53
<TABLE>
<CAPTION>
MONTH PH MAC IDD
<S> <C> <C> <C>
S -1 -16 12
O 4 -17 8
N 27 -8 30
D 10 -17 37
1999
MONTH PH MAC IDD
J 15 -7 41
F 22 -17 39
M 25 -16 41
A 30 -2 41
M 68 15 62
J 62 10 71
J 56 11 79
A 57 9 72
S 55 9 78
O 62 9 75
N 53 8 55
D 63 -1 42
2000
MONTH PH MAC IDD
J 78 10 47
F 32 -21 34
</TABLE>
[LOGO] GRESEN [LOGO] Commercial [LOGO] Parker
Intertech
53
<PAGE> 54
THE WALL STREET JOURNAL THRUSDAY, FEBRUARY 24, 2000
[TABLE] Industrial Diversified As of 12/31/99
[NOTE: OVERLAPPING BOX OBSCURES SOME FIGURES FROM TABLE. A NUMBER SIGN (#)
IS USED TO INDICATE AN OBSCURED FIGURE.]
<TABLE>
<CAPTION>
COMPANY 1- SURPLUS/ 3-YEAR SURPLUS/ 5-YEAR SURPLUS/ 10-YEAR SURPLUS/
NAME YEA DEFICIT AVERAGE DEFICIT AVERAG DEFICIT AVERAGE DEFICIT
R RELATIVE RETURN RELATIVE E RELATIVE RETURN RELATIVE
RET TO TO RETURN TO TO
URN INDUSTRY INDUSTRY INDUSTRY INDUSTRY
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GENERAL +53.6 +46.8 +48.4 +36.2 +46.1 +27.1 +28.4 +12.8
ELECTRIC
DOVER +25.3 +18.5 +23.0 +10.8 +30.2 +11.2 +19.9 +4.2
DANAHER -11.1 -17.8 +27.6 +15.4 +30.1 +11.1 +29.1 +13.5
HONEYWELL +31.8 +25.0 +21.5 +9.3 +29.6 +10.5 +23.6 +8.0
INTERNATIONAL
TEXTRON +2.6 -4.1 +19.6 +7.3 +27.3 +8.3 +23.1 +7.4
ILLINOIS TOOL +17.6 +10.8 +20.3 +8.0 +26.5 +7.5 +21.1 +5.5
WORKS
INGERSOLL- +17.9 +11.1 +24.6 +12.3 +23.2 +4.2 +14.9 -0.8
RAND
PARKER- +59.2 +52.4 +27.7 +15.5 +22.6 +3.5 +19.2 +3.6
HANNIFIN
MINN. MINING & +41.1 +34.3 +8.3 -3.9 +16.8 2.2 +13.2 -2.4
M#
ITT INDUSTRIES -14.5 -21.3 +13.0 +0.7 +16.6 -2.5 +15.1 -0.6
PENTAIR #1.8 -8.6 +7.8 -1.4 +14.4 -4.6 +17.9 +2.2
STANLEY # +5.1 +6.2 -6.1 +13.9 -5.1 +7.6 -8.1
WORKS
PPG # # +6.2 -6.1 +13.8 -5.2 +15.4 -0.3
INDUSTRIES
CRANE # # +3.9 -8.4 +13.6 -5.5 +9.8 -6.9
TELEFLEX 30.5 # # 4.6 +13.5 -5.6 +13.1 -2.5
EATON +5.0 # # 8.6 +10.6 -8.4 +12.9 -2.7
COOPER # # # # # # # #
INDUSTRIES
NATIONAL # # # # # # # #
SERVICE INDUS
FMC # # # # # # # #
US INDUSTRIES # # # # # # # #
PEER AVERAGE # # # # # # # #
</TABLE>
54
<PAGE> 55
[OVERLAPPING BOX]
1-YEAR SURPLUS/ 3-YEAR
RETURN INDUSTRY RETURN
PARKER HANNIFIN 59.2 52.4 27.7
PARKER RANK #1 #1 #2
55
<PAGE> 56
FOR MORE INFORMATION
* Check phstock.com for information and updates
[Graphic depiction of Parker Web Site]
56
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* * * * * * * * * *
INVESTOR NOTICE
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Investors and shareholders are advised to read the proxy statement/prospectus
regarding Parker- Hannifin Corporation's proposed merger with Commercial
Intertech Corp. referenced in the foregoing information, because it contains
important information. This proxy statement/prospectus was filed with the
Securities and Exchange Commission by Parker as part of Parker's Registration
Statement on Form S-4, which became effective February 28, 2000. Investors and
shareholders may obtain a free copy of the proxy statement/prospectus and other
documents filed by Parker at the Securities and Exchange Commission's web site
at www.sec.gov. The proxy statement/prospectus and such other documents also may
be obtained by directing such request to Parker-Hannifin Corporation, 6035
Parkland Boulevard, Cleveland, OH 44114, Office of Corporate Secretary, tel:
(216) 896-3000.
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, events or developments, including
statements related to earnings accretion and synergies to be realized in the
merger, are forward-looking statements. It is possible that the company's future
performance may differ materially from current expectations expressed in these
forward-looking statements, due to a variety of factors such as changes in:
business relationships with and purchases by or from major customers or
suppliers; competitive market conditions and resulting effects on sales and
pricing; increases in raw-material costs which cannot be recovered in product
pricing; global economic factors, including currency exchange rates and
difficulties entering new markets; failure of the merger to be consummated;
ability to successfully integrate Commercial Intertech's business with Parker's;
and factors noted in the Registration Statement on Form S-4 filed by Parker in
connection with the proposed merger with Commercial Intertech and in Parker's
reports filed with the Securities and Exchange Commission.
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