Parker Hannifin 3Q net income rises, lifts outlook

The motion control products maker raised its fiscal 2012 earnings outlook Tuesday and boosted its quarterly dividend by 5 percent, to 41 cents per share.

Shares jumped 5 percent, or $4.04, to $84.98.

The company earned $312.1 million, or $2.01 per share, for the three months ended March 31. That's up from $279.6 million, or $1.68 per share, in the prior-year period.

This topped the $1.71 per share that analysts polled by Fact Set forecast.

Revenue increased 5 percent to $3.39 billion from $3.24 billion as industrial North America segment sales rose 11.6 percent. Sales for the industrial international business slipped less than 1 percent, while aerospace sales climbed 7.7 percent. Sales for the climate and industrial controls division fell 6 percent.

Wall Street expected revenue of $3.27 billion.

Total orders rose 2 percent, with orders for the industrial North America segment up 7 percent and aerospace orders climbing 4 percent. Orders for the industrial international unit dipped 1 percent, while order for the climate and industrial controls unit fell 6 percent.

For fiscal 2012, Parker-Hannifin now expects earnings from continuing operations between $7.30 and $7.50 per share. Its prior forecast called for earnings in a range of $6.90 to $7.30 per share.

Analysts predict earnings of $6.37 per share.

Parker-Hannifin Corp. said that its quarterly dividend will be paid on June 1 to shareholders of record on May 10.

The company also announced Tuesday that it is buying Olaer Group for an undisclosed amount in part to strengthen its position in Europe and grow in Asia. The U.K. company makes a range of advanced hydraulic accumulator and cooling technologies to provide solutions for energy, mobile and industrial markets.

Once the acquisition closes, Olaer will be folded into Parker's hydraulics group in its industrial segment.