DUBLIN, Ireland — Power management company Eaton Corporation plc today announced that earnings per share were $1.33 for the first quarter of 2022. Excluding charges of $0.25 per share related to intangible amortization, $0.03 per share related to a multi-year restructuring program, and $0.01 per share related to acquisitions and divestitures, adjusted earnings per share of $1.62 were a first quarter record and up 13% over the first quarter of 2021.
Sales in the first quarter of 2022 were $4.8 billion, up 3% from the first quarter of 2021. The sales increase consisted of 10% growth in organic sales and 6% growth from acquisitions, which was partially offset by 12% from the divestiture of the Hydraulics business and 1% from negative currency translation.
First quarter segment margins were 18.8%, a first quarter record and at the high end of the guidance. This represents a 110-basis point improvement over the first quarter of 2021. Operating cash flow in the first quarter of 2022 was $42 million and free cash flow was negative $73 million. This was driven by an increase in working capital to support higher than originally projected revenues for the full year.
Craig Arnold, Eaton chairman and chief executive officer, said, “We had a record first quarter, the fifth quarter in a row of record performance. First quarter sales grew 10% organically, above the high end of our guidance. In addition, we continue to see robust demand in our end markets leading to record backlog and accelerating orders up 30% in Electrical and up 35% in Aerospace on a rolling 12-month basis. Further, first quarter adjusted earnings per share were up 13% over 2021 and segment margins were 110 basis points above last year. This is a testament to the strong execution by our teams despite the challenges and uncertainties of today’s environment.”
For the full year 2022, the company is increasing its organic growth guidance from 7-9% to 9-11% and raising adjusted earnings per share to between $7.32 and $7.72. For the second quarter of 2022, the company anticipates organic growth of 9-11% and adjusted earnings per share to be between $1.78 and $1.88.
Business Segment Results
Sales for the Electrical Americas segment were $1.9 billion, up 17% from the first quarter of 2021. Organic sales were up 10% and the acquisition of Tripp Lite added 7%. Operating profits were $361 million, up 9% over the first quarter of 2021. Operating margins in the quarter were 19.1%, down 140 basis points from the first quarter of 2021 driven by higher commodity and logistics costs, increased growth related investments and supply chain disruptions.
Twelve-month rolling average orders continued to accelerate in the first quarter and were up 31% organically, with strength across all end markets. Backlog at the end of March remains strong and was a record, up 86% organically over March 2021.
Sales for the Electrical Global segment were $1.4 billion, up 15% over the first quarter of 2021. Organic sales were up 18%, partially offset by negative currency translation of 3%. Operating profits were $279 million, up 31% over the first quarter of 2021. Operating margins in the quarter were 19.4%, up 240 basis points over the first quarter of 2021.
Twelve-month rolling average orders in this segment also continued to accelerate in the first quarter and were up 27% organically, driven by strength across all end markets. At the end of March, backlog was also strong and a record, up 54% organically over March 2021.
Aerospace segment sales were $718 million, up 38% from the first quarter of 2021. Organic sales were up 15% and the acquisition of Mission Systems added 25%, which was partially offset by 2% negative currency translation. Operating profits were $159 million, up 66% from the first quarter of 2021. Operating margins in the quarter were 22.1%, up 360 basis points over the first quarter of 2021.
On an organic basis, twelve-month rolling average orders continued to accelerate in the first quarter and were up 35%, driven by strength in commercial OEM and commercial aftermarket. On an organic basis, backlog at the end of March was up 14% versus March 2021, a new record.
The Vehicle segment posted sales of $671 million, up 3% from the first quarter of 2021 driven entirely by organic sales growth. Operating profits were $113 million, flat to the first quarter of 2021. Operating margins in the quarter were 16.8%.
eMobility segment sales were $126 million, up 52% over the first quarter of 2021. Organic sales were up 7% and the acquisition of Royal Power Solutions added 46%, which was partially offset by 1% negative currency translation. The segment recorded an operating loss of $3 million reflecting continued investment in research and development and start-up costs associated with new program wins.
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