DUBLIN, Ireland — Power management company Eaton Corporation plc announced that earnings per share were $1.26 for the second quarter of 2021. Excluding charges of $0.25 per share related to intangible amortization, $0.18 per share related to acquisitions and divestitures, and $0.03 per share related to a multi-year restructuring program, adjusted earnings per share were a second quarter record of $1.72, up 98% over the second quarter of 2020 and up 19% over the first quarter of 2021.
Sales in the second quarter of 2021 were $5.2 billion, up 35% from the second quarter of 2020. The sales increase consisted of 27% growth in organic sales, 5% growth from acquisitions, and 3% from positive currency translation.
Craig Arnold, Eaton chairman and chief executive officer, said, “Building on the momentum from the first quarter, we achieved strong performance in the second quarter. We delivered record second quarter adjusted earnings per share and segment margins, and organic sales were slightly above the midpoint of our guidance range despite supply chain constraints impacting many of our businesses. We are pleased with how well our businesses are executing in this environment.”
Second quarter segment margins were 18.6% and up 390 basis points over the second quarter of 2020. This result was above the high end of our guidance range, and a second quarter record. These strong segment margins were driven by effectively managing supply chain constraints, increased productivity and continued benefits from the multi-year restructuring program announced in the second quarter of 2020.
Operating cash flow in the second quarter of 2021 was stronger than expected at $637 million and free cash flow was $484 million.
During the quarter, we continued to improve our portfolio of businesses. The company closed the acquisition of Cobham Mission Systems, and the acquisition of a 50% stake in Jiangsu YiNeng Electric’s busway business in China, adding new products and growth opportunities for the Aerospace and Electrical Global segments. The Hydraulics sale to Danfoss closed August 2.
“Driven by strong second quarter performance and anticipated higher organic sales for the remainder of the year, we now expect 2021 adjusted earnings per share to be between $6.58 and $6.88, up 37% at the midpoint over 2020,” said Arnold. “Additionally, we expect 2021 full year adjusted operating cash flow to be between $2.6 billion and $2.8 billion, up $200 million at the midpoint over our previous guidance. Finally, for the third quarter of 2021, we anticipate adjusted earnings per share to be between $1.72 and $1.82.”
Business Segment Results
Sales for the Electrical Americas segment were $1.8 billion, up 24% from the second quarter of 2020. Organic sales were up 15%, the acquisition of Tripp Lite added 8%, and positive currency translation added 1%. Operating profits were $393 million, up 28% from the second quarter of 2020. Operating margins of 21.3% were a second quarter record, up 60 basis points over the second quarter of 2020 and up 190 basis points over the second quarter of 2019.
The twelve-month rolling average of orders in the second quarter was up 13%, with particular strength in data center and residential markets. Orders increased 43% over the second quarter of 2020 and 14% over the first quarter of 2021. Backlog at the end of June was a new record and up 43% over June 2020.
Sales for the Electrical Global segment were $1.4 billion, up 28% over the second quarter of 2020. Organic sales were up 22% and positive currency translation added 6%. Operating profits were $259 million, up 46% over the second quarter of 2020. Operating margins of 18.3% were a second quarter record and up 230 basis points over the second quarter of 2020.
The twelve-month rolling average of orders in the second quarter was up 10%, driven by data center, utility and residential markets. During the second quarter, the business experienced strong order growth of 46% over the second quarter of 2020 and 9% over the first quarter of 2021. The June backlog grew 50% over June 2020 and was also a new record.
Aerospace segment sales were $625 million, up 36% from the second quarter of 2020. Organic sales were up 17%, the acquisition of Cobham Mission Systems added 16%, and positive currency translation added 3%. Operating profits were $131 million, up 93% from the second quarter of 2020. Operating margins in the quarter were 21%, up 620 basis points over the second quarter of 2020.
The twelve-month rolling average of orders in the second quarter was down 16%, driven by the downturn in commercial markets. On an organic basis, backlog at the end of June was flat to June 2020. Sequentially, organic orders were up 12% compared to the first quarter of 2021.
The Vehicle segment posted sales of $675 million, up 106% over the second quarter of 2020. Organic sales were up 103% and positive currency translation added 3%. Operating profits were $121 million with operating margins of 17.9%, compared to a loss of $21 million in the second quarter of 2020.
eMobility segment sales were $88 million, up 57% over the second quarter of 2020, driven by organic sales growth of 54% and positive currency translation of 3%. The segment recorded an operating loss of $6 million reflecting continued investment in research and development and ramp up costs associated with new program wins.
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