Sales up, net income drops for Eaton Corp.
(Rubber & Plastics News Report)
Dublin – Eaton Corp. reported increased sales for the second quarter and half year of 2014, with net income decreasing compared to 2013.
Net income came in at $172 million (€128.3m) for the quarter, down $325 million from 2013. For the half year, net income is down $264 million compared to 2013, at $613 million.
Sales increased from about $5.6 billion to about $5.77 billion for the second quarter and are up to about $11.3 billion from $10.9 billion on the six-month period.
“During the second quarter, several unusual items impacted our earnings,” chairman and CEO Alexander M. Cutler said. “First, we closed the divestiture of two small aerospace businesses for a pretax gain of $156 million. Second, we settled two longstanding litigations, one with Meritor and one with Triumph, as well as related litigation for a pretax cost of $644 million. Factoring in these unusual items, operating earnings per share in the second quarter were reduced by 70 cents after tax.”
Sales for Eaton’s Hydraulics segment increased by 2 percent to $787 million in the second quarter of 2014. Operating profits for the division came in at $94 million. Excluding acquisition integration charges of $5 million, operating profits decreased 12 percent, including $13 million in restructuring costs.
Cutler said hydraulics markets in the second quarter were modestly lower than in 2013, with strength in industrial applications offset by weakness in agricultural equipment globally and construction equipment in China.
Eaton Corp. is ranked no. 13 in ERJ's non-tire global rubber producers list. The company provides a wide range of products – including hoses for the aerospace and automotive industries.