Diversified industrial manufacturer Eaton Corporation
(NYSE:ETN) announced net income per share of $1.02 for the third quarter of
2012, a decrease of 5% from the $1.07 earned in the record third quarter of 2011.
Sales in the third quarter were $3.95 billion, 4% below the third quarter of
2011. Net income in the third quarter was $345 million compared to $365 million
in 2011.
Eaton’s net income included charges for integration of
acquisitions. Before these acquisition integration charges, operating earnings
per share in the third quarter of 2012 were $1.07 compared to $1.08 per share
in 2011, a decrease of 1%. Operating earnings in the third quarter were $363
million compared to $367 million in 2011. The firm’s operating profits in the
third quarter were $93 million. Excluding acquisition integration costs of $5
million during the quarter, operating profits were $98 million, down 11% from
the third quarter of 2011.
Headquartered in Cleveland, Eaton is a diversified power
management company that provides energy-efficient solutions that help customers
effectively manage electrical, hydraulic and mechanical power. In a press
release, the company’s Chairman and CEO Alexander M. Cutler said, “Sales in the
third quarter declined by 4 percent compared to the third quarter of 2011. This
reduction in sales was comprised of declines of 2 percent from core growth and
4 percent from foreign exchange, offset by 2 percent growth from acquisitions.
End markets declined 1 percent in the quarter.”
Third quarter sales for Eaton’s Electrical Americas segment
were $1.14 billion, up 6% compared to 2011 and a quarterly record for this
segment. Operating profits in the third quarter were a record $207 million.
Excluding acquisition integration charges of $1 million during the quarter,
operating profits were a record $208 million, up 31% over results in 2011.
Sales for the company’s Electrical Rest of World segment
were $686 million, a decline of 9% compared to the third quarter of 2011. The
sales decrease comprised a decline of 6% from foreign currency and 3% from core
sales. The segment reported operating profits of $76 million. Excluding
acquisition integration costs of $1 million during the quarter, operating
profits were $77 million, up 24% over results in 2011.