Dublin, Ireland-based power management company Eaton Corporation plc, (NYSE:ETN) reported sales of $5.8 billion for the second quarter, a 3 percent increase compared to the second quarter of 2013. The company’s operating earnings per share – which exclude charges of $0.05 per share to integrate recent acquisitions – were $0.41 for the second quarter of 2014.
Eaton’s operating earnings for the second quarter of 2014, excluding pre-tax charges of $37 million to integrate recent acquisitions and the unusual gain and costs noted above, were $529 million, an increase of 2 percent over 2013. “Our second quarter results, adjusted for unusual items, were above the midpoint of our original guidance for the quarter,” said Alexander M. Cutler, Eaton chairman and CEO, in a company press release. “Revenue came in as we expected, with core sales growth of 3 percent in the quarter, following 4 percent core growth in the first quarter of 2014.”
Eaton’s sales for the electrical products segment were $1.8 billion, up 4 percent over 2013. Operating profits were $300 million. Excluding acquisition integration charges of $12 million during the quarter, operating profits were $312 million, up 10 percent over the second quarter of 2013. “Our bookings in the second quarter in the electrical products segment were up 6 percent over the second quarter a year ago, continuing our strong momentum of the past several quarters,” said Cutler.
Sales for Eaton’s electrical systems and services segment were $1.6 billion, the same as in the second quarter of 2013. Core sales were up 1 percent, which was offset by a decline of 1 percent from currency translation. The segment reported operating profits of $194 million. Excluding acquisition integration charges of $13 million during the quarter, operating profits were $207 million, down 13 percent from the second quarter of 2013.
“Our margins during the quarter were impacted by higher logistics costs, unfavorable mix, and pricing pressures,” said Cutler. “We expect these factors to impact margins over the balance of the year. Bookings in the second quarter were up 7 percent from the second quarter of 2013.”
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