Parker Hannifin has been notified that the European Commission (EC) is imposing a fine of 25.6 million euros (approximately $32.9 million), in connection with its investigation of whether Parker's ITR subsidiary, acquired in 2002, violated the competition laws of the European Union commencing in 1986. The fine results from an investigation of a business unit of ITR that manufactures marine hose, typically used in oil exploration. Parker fully cooperated with the investigation. The business unit had revenues of approximately $15 million when acquired.

“The problems that were uncovered started long before Parker acquired this small, Italian company and were concealed from Parker," said Tom Piraino, Vice President, General Counsel and Secretary. "We are disappointed in the magnitude of the fine imposed by the EC, particularly given our quick response to the problems we encountered and cooperation with the EC investigation, which underscores our commitment to ethical business practices and sound stewardship. Particularly disappointing is the portion of the fine that the EC chose to impose for the period prior to Parker's acquisition of the business. We are evaluating all of our options, including an appeal of this EC decision."

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