Cooper Industries plc (NYSE: CBE) reported record third
quarter earnings per share of $1.16, an increase of 18% compared to earnings
per share of $.98 for the same period last year. Total operating profit margin
was 17.0% for the third quarter of 2012, an increase from 14.8% in the same
period last year.
Headquarter in Dublin, Ireland, Cooper is a diversified
global manufacturer of electrical components and tools. The company’s third
quarter 2012 revenues increased $107.8 million, or 7.8%, to $1.50 billion
compared to revenues of $1.39 billion in the third quarter of the prior year.
Cooper experienced core revenue growth of 6.7% during the
third quarter, with acquisitions adding 2.6% and currency translation reducing
reported revenues by 1.5% when compared to the prior year. Order rates slowed
during the quarter resulting in a third quarter book-to-bill ratio of 98%;
however, the firm’s order backlog was still up 16% versus December 31, 2011.
According to a company press release, North America and
developing markets continue to perform well for Cooper as businesses selling
into key growth markets such as industrial and oil & gas experienced solid
demand. Commercial and residential construction demand showed positive trends
with orders increasing throughout the quarter, but overall demand still remains
For the first nine months of 2012 Cooper reported free cash
flow of $432.7 million, an increase of 20.9% compared to the same period last
year. Core growth for the United States and Canada was 4%, reflecting continued
favorable growth trends in the industrial end market but offset somewhat by a
softening of demand in the utility end market.
Cooper reported that its North American lighting business
showed double-digit core growth driven by continued adoption of LED technology
and demand for energy efficient products. LED-based products represented
greater than 20% of third quarter net sales for the Cooper Lighting division.
The company’s momentum from the first half of 2012 continued
with very solid project activity in the energy markets and demand in the
industrial distribution/MRO markets. Utility end markets experienced mixed
results during the third quarter, while commercial construction activity was
bolstered by an increase in new projects and continued retrofit/remodeling
activity and sales of energy efficient LED-based products.