Cooper Industries' 2Q profit drops 23 percent

Cooper Industries Ltd., a supplier of electrical fuses, lighting fixtures and other products, reported a 23 percent decline in second-quarter earnings Thursday as costs outweighed strong sales growth.

The company also raised its 2008 profit target, and its shares rose 3 pecent.

For the three months ended June 30, net income dropped to $161.9 million, or 92 cents per share, from $209.2 million, or $1.12 per share, in the prior-year period.

Quarterly revenue jumped nearly 18 percent to $1.72 billion from $1.46 billion a year earlier.

Excluding losses from severance costs related to the downsizing of an international tool facility and currency items, second-quarter profit climbed to 97 cents per share from an adjusted 78 cents per share last year. Second-quarter 2007 results included a tax adjustment of 34 cents per share, the company said.

Analysts surveyed by Thomson Financial, on average, forecast a profit of 91 cents per share on revenue of $1.70 billion. Those estimates typically exclude one-time items.

Shares of Cooper Industries rose $1.32 to $44.79 in afternoon trading Thursday. The stock is down about 12 percent in the year to date.