CLEVELAND (AP) — Parker Hannifin Corp., which makes industrial hoses, airplane wheels and other products, said its net income rose 3 percent to $302 million in its fiscal fourth quarter thanks to strong growth in North America and aerospace sales. But the company's shares fell on word that its 2013 fiscal year earnings would be impacted by pension expenses.
The fourth-quarter earnings, of $1.96 per share, compared with earnings of $292.2 million, or $1.79 per share, in the April-June quarter a year ago. They beat Wall Street's forecast of $1.91 per share, according to analysts polled by FactSet. Revenue for the quarter was flat at $3.41 billion but in line with analysts' expectations.
For the 2012 fiscal year, the Cleveland-based company's net income rose nearly 10 percent to $1.15 billion, or $7.45 per share. That compared with earnings of $1.05 billion, or $6.37 per share, in the 2011 fiscal year.
Full-year revenue was $13.15 billion, up 6.5 percent.
The company said it expects earnings per share to be in the range of $7.10 to $7.90 in the 2013 fiscal year, which takes into account approximately 35 cents per share in increased domestic pension expenses. The company said it has to use a lower discount rate based on market conditions.
That was a disappointment for investors, since analysts had been expecting earnings of $7.91 for the 2013 fiscal year.
Parker Hannifin shares fell more than 3 percent to close at $78.85.