Acquisition Fuels Earnings Surge at Eaton Corporation, PLC

Eaton Corporation, PLC (NYSE: ETN  ) announced its fourth-quarter results before the opening bell today. The company reported operating earnings of $516 million or $1.08 per share. Those results were up 63% and 32%, respectively, over last year's fourth quarter. While the company beat analyst earnings expectations by $0.02, revenue of $5.52 billion did miss estimates by $30 million, though sales were up 28% from 2012.

The acquisition of Cooper Industries grew sales in the company's electrical products division by 57% over the prior year. Meanwhile, sales from electrical services and custom-designed electrical systems for buildings grew 38% over the prior year. Growth was lower at Eaton's hydraulics unit as well as its aerospace segment, as sales in those divisions only increased 3%. Finally, sales in Eaton's vehicle segment were up 7% over last year.

Overall, Eaton's core sales growth was up 4% on the quarter. That was the company's strongest quarter of core sales growth in 2013. On top of that the company generated record cash flow of $872 million in the quarter. That's up 27% over the prior year's fourth quarter.

Looking ahead, Eaton expects to see its markets grow 3% in 2014. That should result in operating earnings growth per share of 14%, which would set a new record for operating earnings again in 2014. 

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2822341, ~/Articles/ArticleHandler.aspx, 7/25/2014 4:25:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement