Please ensure Javascript is enabled for purposes of website accessibility

Acquisition Fuels Earnings Surge at Eaton Corporation, PLC

By Matthew DiLallo - Feb 4, 2014 at 9:37AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

Eaton Corporation, PLC (ETN -0.32%) 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. 


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Eaton Corporation plc Stock Quote
Eaton Corporation plc
$136.08 (-0.32%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.