Dublin, Ireland – Eaton Corp. has recorded a 90% year-on-year decline in second quarter net income to $54 million (€45 million), on 30% lower sales of $3.86 billion, the company announced 29 July.
Over the first six months of 2020, Eaton posted $8.65 billion in sales, down from $10.8 billion over in the first half of 2019. Net income was more than halved to $492 million.
Amid ongoing uncertainties caused by Covid-19 pandemic, Eaton said it believed the second quarter — during which the power management company saw losses across every segment — is expected to be the "trough" of the curve.
"Despite several of our end markets facing dramatic declines, we were able to post better-than-expected financial results and very strong cash flow," said Craig Arnold, Eaton chairman and chief executive officer.
Arnold said the pandemic caused customer shutdowns from March through mid-May in many cases, in both OEMs and aftermarket customers, and many of those same customers still are estimating a "slow and prolonged recovery."
Arnold said he expects the third quarter results to post a decline of 13-17% over the third quarter of 2019, a good recovery from the 30% suffered in the second quarter.
"Some of these customers are just now coming back online," Arnold said. "But in absolute terms, markets are still in decline. We are still living through a period of uncertainty, but we do believe Q2 is the trough."