Eaton sales up 7%
Eaton Corporation announced sales in the fourth quarter were $4.3 billion, 7 percent higher than the same period in 2011.
Net income was $179 million compared to $362 million in 2011, a decrease of 51 percent.
“We closed the acquisition of Cooper at the end of November and are off to a great start on the integration of Cooper into Eaton. As we had previously communicated, the closing of the Cooper transaction resulted in several unusual financial impacts to our fourth quarter results. Among these were $152 million of transaction costs reflected in our fourth quarter results. We also incurred $24 million of acquisition integration charges in the quarter," said Alexander M. Cutler, Eaton chairman and chief executive officer.
Sales growth consisted of a decline of 6 percent in core sales and a reduction of 1 percent from foreign exchange, offset by an increase of 14 percent from acquisitions. Of the 14 percent sales growth from acquisitions, Cooper represented 12 percent. End markets in the fourth quarter declined by 5 percent, Cutler said.
For the full year 2012, sales were $16.3 billion, 2 percent higher than 2011. Net income was $1.22 billion, and net income per share was $3.46.
In the Hydraulics segment, fourth quarter sales were $693 million, 2 percent lower than the fourth quarter of 2011. The 2 percent sales decline was made up of 10 percent growth from acquisitions offset by an 11 percent decline in core growth and a 1 percent decline from foreign exchange. Hydraulics markets in the fourth quarter declined 11 percent compared to the same period in 2011, with U.S. markets down 9 percent and non-U.S. markets down 12 percent.
“The global hydraulics market had another weak quarter, as mobile OEMs in particular maintained a cautious stance regarding future volumes. Our bookings in the quarter declined 24 percent from the fourth quarter of 2011,” said Cutler. “To address continued weakness in our Hydraulics markets, particularly in Europe, we took restructuring actions in the fourth quarter that reduced our Hydraulics margins by 2.5 percent. For 2013, we anticipate global hydraulics markets will decline by 4 percent, with U.S. markets down a bit more than non-U.S. markets.”
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
