Power management company Eaton Corporation plc, (NYSE:ETN) posted record earnings per share of $1.29 (excluding charges of $0.03 per share to integrate recent acquisitions) for the third quarter of 2014, representing a 15 percent increase over the same period in 2013.
Eaton’s sales during the third quarter reached $5.7 billion, or 2 percent above the same period in 2013. The company’s sales growth consisted of 3 percent growth in core sales offset by 1 percent of negative foreign exchange. Operating earnings for the third quarter of 2014, excluding pre-tax charges of $19 million to integrate recent acquisitions, were $616 million, an increase of 15 percent over 2013.
“We had a very strong quarter, setting numerous performance records at both the segment and corporate level,” said Alexander M. Cutler, chairman and CEO, in a company press release. “Third quarter results came in near the high end of our guidance for the quarter. Our segment operating margins, which exclude acquisition integration charges, were a record 16 percent as productivity gains and effective cost control more than offset the impact of modestly lower- than-expected revenues.”
Cutler went on to say that the firm’s third quarter bookings in both of its electrical segments again showed good growth, as did orders in the aerospace segment. “Reflecting the continued slower growth in our markets outside North America,” he added, “we now estimate our markets in 2014 are likely to grow 2 percent, down from our prior estimate of 3 percent.”
For the third quarter, sales for Eaton’s electrical products segment were a record $1.9 billion, up 3 percent over 2013, and operating profits were $330 million. Excluding acquisition integration charges of $8 million during the quarter, operating profits were a record $338 million, up 9 percent over the third quarter of 2013.
“Electrical Products had strong operating margins, coming in at 18.0 percent,” said Cutler, in the press release. “Our bookings in the third quarter were up 5 percent over the third quarter a year ago, continuing our strong momentum this year.”
Eaton’s electrical systems and services segment sales were a record $1.7 billion, up 1 percent over third quarter of 2013. The segment reported operating profits of $238 million. Hydraulics segment sales were $733 million, down 1 percent from the third quarter of 2013, and aerospace segment sales were $454 million, up 1 percent over the third quarter of 2013.
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