Diversified industrial manufacturer Eaton Corp. (NYSE: ETN), Dublin, Ireland, reported sales for the first quarter were $5.31 billion, up 34 percent from the same period in 2012. First quarter results were driven by the acquisition of Cooper Industries last year, as core sales fell 5 percent in the period. Profit increased 22 percent to $378 million.
“We entered 2013 expecting it would be a year of subpar global economic growth, leading to approximately 2 to 3 percent growth in our markets,” CEO Alexander M. Cutler said. “We continue to believe our markets will grow 2 to 3 percent in 2013, most likely toward the lower end of the range."
Sales for the Electrical Products segment were $1.7 billion, up 87 percent over 2012, reflecting the impact of the Cooper Industries acquisition. Operating profits were $241 million. Excluding acquisition integration charges of $3 million during the quarter, operating profits were $244 million, up 76 percent over the first quarter of 2012.
Sales for the Electrical Systems and Services segment were $1.5 billion, up 79 percent over the first quarter of 2012, reflecting the impact of the Cooper Industries acquisition. The segment reported operating profits of $210 million. Excluding acquisition integration charges of $5 million during the quarter, operating profits were $215 million, up 176 percent.
“In both of our Electrical segments, our end markets were strongest in the U.S., the Middle East and Latin America, with mixed conditions in Asia Pacific and weakness in Europe,” said Cutler. “We believe sales will improve during the balance of the year, in line with the normal seasonal pattern of demand.”
Hydraulics segment sales were $756 million, an increase of 3 percent compared to the first quarter of 2012. Sales growth was driven by revenues from acquisitions completed in 2012, which accounted for 13 percent growth, offset by a 9 percent decline in core sales and a 1 percent decline from currency translation. Operating profits in the first quarter were $78 million. Excluding acquisition integration charges of $12 million, operating profits were $90 million, a decline of 18 percent.
Aerospace segment sales were $434 million, up 1 percent over the first quarter of 2012. Operating profits in the first quarter were $62 million, an increase of 3 percent compared to a year earlier.
The Vehicle segment posted sales of $939 million, down 11 percent compared to the first quarter of 2012. The segment reported operating profits in the first quarter of $132 million, a decrease of 18 percent from the first quarter of 2012.
