Acquisition Fuels Earnings Surge at Eaton Corporation, PLC

Profit gains from the acquisition of Cooper Industries helped push earnings up 63% at Eaton Corporation, PLC.

Feb 4, 2014 at 9:37AM

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. 


Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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