Like other industrial conglomerates including Danaher
For now, though, all but one of the company's major segments is doing pretty well. That, in turn, translated into 14% revenue growth in the first quarter (9% of it organic) and double-digit growth in both income and earnings per share.
In both Eaton's electrical and fluid power businesses, segment profit growth was greater than 30%. What's more, I don't think there's any immediate reason to expect things to turn sour -- commercial aerospace is improving, and management here believes that the electrical business is just starting to hit the "sweet spot" of this economic cycle.
While Eaton's truck business did all right (operating profits were up 9%), the auto business was weak. Because nearly one-third of the company's revenue here comes from Ford
One of the things I find attractive about Eaton is that management has tried to intelligently expand into an array of businesses that do well at different points in the cycle. Of course, we're still talking about an industrial company, and if or when recession comes again, that'll likely be bad for the whole kit and caboodle.
Like many of its peers and competitors (including the likes of Parker-Hannifin
For more industrial-grade Foolishness:
- Danaher Polishes Off Sybron
- An Electric Quarter for Emerson
- Parker-Hannifin: "Industrial" Isn't a Bad Word
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).