Diversified industrial manufacturer Eaton Corp. (NYSE: ETN), Dublin, Ireland, reported sales for the second quarter of $5.6 billion, 38 percent above the same period in 2012. The increase was driven by Eaton’s acquisition of Cooper Industries
“The decline in our core sales reflected soft conditions in several of our end markets, which have shown a continuation of the sluggish economic conditions experienced in many parts of the world during the second half of 2012 and in the first quarter of 2013," said CEO Alexander M Cutler.
Sales for the electrical products segment were $1.8 billion during the second quarter, up 95 percent over the second quarter of 2012, reflecting the impact of the Cooper Industries acquisition. Excluding acquisition integration charges of $12 million during the quarter, operating profits were $284 million, up 88 percent over the second quarter of 2012.
Sales for the electrical systems and services segment were $1.6 billion, up 78 percent over the second quarter of 2012, reflecting the impact of the Cooper Industries acquisition. Excluding acquisition integration charges of $11 million during the quarter, operating profits were $238 million, up 148 percent over the second quarter of 2012.
Hydraulics segment sales were $772 million, an increase of less than 1 percent compared to the second quarter of 2012. Sales growth was driven by revenues from acquisitions completed in 2012, which accounted for 10 percent growth, offset by a 9 percent decline in core sales and a 1 percent decline from currency translation. Excluding acquisition integration charges of $8 million, operating profits were $112 million, a decline of 11 percent.
Aerospace segment sales were $446 million, up 2 percent over the second quarter of 2012. Operating profits in the second quarter were $67 million, an increase of 14 percent compared to a year earlier.
The vehicle segment posted sales of $1 billion, down 4 percent compared to the second quarter of 2012. The segment reported operating profits of $172 million, an increase of 2 percent over the second quarter of 2012.
For the first six months, sales for Eaton were $10.9 billion, an increase of 35.9 percent compared to the same period a year ago. Profit increased 26.6 percent to $877 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,” said. Cutler. “With global economic growth coming in lower than our earlier expectations, we now believe our markets will grow just 1 percent in 2013.”