Eaton 2Q earnings per share increase 47 percent
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[July 27, 2011]
CLEVELAND (Business Wire) --
Diversified industrial manufacturer Eaton Corp. (NYSE:ETN) announced
net income per share of 97 cents for the second quarter of 2011, an
increase of 47 percent over the 66 cents earned in the second
quarter of 2010. Sales in the second quarter were $4.09 billion, 21
percent above the second quarter of 2010. Net income in the second
quarter was $336 million, compared with $226 million in 2010.
Net income in both periods included charges for integration of
acquisitions. Before these acquisition integration charges,
operating earnings per share in the second quarter of 2011 were 97
cents, compared with 68 cents per share in 2010, an increase of 43
percent. Operating earnings in the second quarter were $338 million,
compared with $232 million in 2010.
Alexander M. Cutler, Eaton chairman and chief executive officer,
"We are pleased with our second-quarter results, which exceeded
the high end of our guidance for the quarter. Our sales in the
second quarter were 8 percent higher than in the first quarter of
2011, reflecting the continued expansion of our markets around the
"Sales in the second quarter increased 21 percent compared to the
second quarter of 2010. Sales growth was comprised of 14 percent
core growth, 6 percent from foreign exchange and 1 percent from
acquisitions. End markets grew 12 percent in the quarter.
"We are very pleased with our 13.9 percent segment operating
margin in the second quarter, setting a new segment operating margin
"The year is shaping up to be better than we forecasted in April.
We now anticipate our overall end markets will grow by 11 percent
versus our earlier forecast of 10 percent.
"We anticipate net income per share for the third quarter of 2011
to be between $1.01 and $1.11. Operating earnings per share for the
third quarter, which exclude charges to integrate our recent
acquisitions, are anticipated to be between $1.03 and $1.13. Our
outlook anticipates higher sales and margins in the third quarter
over the second quarter, offset partially by a higher tax rate.
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"We are raising our guidance for the full year. As a result of
our strong second quarter and our slightly stronger market outlook
for the year, we are raising our full-year per share guidance at the
midpoint by $0.15, resulting in net income per share of between
$3.86 and $4.06 and operating earnings per share of between $3.90
"We expect 2011 to be a year of record sales and record profits.
Our sales are projected to be 19 percent above 2010 and 6 percent
above our previous annual sales record, which we achieved in 2008.
Our operating earnings per share at the midpoint of our guidance is
42 percent above 2010 and 16 percent above our previous operating
earnings per share record. We are particularly encouraged by the
outlook for our 2011 results, given that many of our significant
businesses are just beginning to recover from the economic downturn
of 2008 and 2009."
[Text from file received[