Eaton Posts Gains in 2Q Net Income, Revenue
Eaton Corp. reported net income and revenue rose during the second quarter led by gains in its electrical products segment.
Net income in the period ended June 30 was $515 million, or $1.15 per diluted share, compared with $491 million, or $1.07, a year earlier, according to the Dublin-based company. Eaton’s regional headquarters for North America is in Cleveland.
Revenue was $5.1 billion, compared with $5 billion a year earlier.
“Segment margins in the second quarter were 15.6%,” Craig Arnold, Eaton chairman and CEO, said in a statement. “Excluding restructuring costs of $27 million incurred in the segments in the quarter, segment margins were 16.2%. This represents a step up of 1.4 percentage points over the first quarter of 2017.”
Speaking of its electrical products segment, Arnold said, “We saw particular strength in the Americas in industrial controls.”
The vehicle segment posted sales of $846 million, up 2% year-over-year. The segment produces emission control components, engine valves, valve-train systems and superchargers — as well as offering driveline expertise through its transmission, clutch and torque management products and systems, the company said.
Organic sales were up 1% and currency translation was up 1%.
Operating profits in the second quarter were $139 million, up 1% over the second quarter of 2016.
“We also closed our previously announced Eaton Cummins Automated Transmission Technologies joint venture on July 31,” Arnold said. “We’re pleased the joint venture closed on schedule and we’re looking forward to working with Cummins.”
Meanwhile, year-to-date net income rose to $948 million, or $2.10, compared with $895 million, or $1.95, in the 2016 period.
Revenue was $10 billion, compared with $9 billion a year earlier.
For the full year, the company said it expects net income and operating earnings per share to be between $4.50 and $4.70 — a 9% increase at the midpoint of its guidance over 2016.
“We anticipate net income and operating earnings per share for the third quarter of 2017 to be between $1.20 and $1.30,” Arnold said.
