Posted April 30, 2020

Eaton reports 10 percent sales decline

Eaton Corporation plc said its first quarter sales of $4.8 billion were down 10 percent from the first quarter of 2019.

Organic sales were down 7 percent, including a reduction of 4 percent from the impact of the COVID-19 pandemic. Acquisitions added 2 percent to sales, which was offset by 3½ percent from divestitures. Negative currency translation reduced sales by 1½ percent.

Net income of $438 million, or $1.07 per diluted share, compared to $522 million, or $1.23, in the same period last year.

Sales for the Electrical Global segment were $1.1 billion, down 8 percent from the first quarter of 2019. Organic sales were down 6 percent, all driven by the impact of COVID-19.

Hydraulics segment sales were $507 million, down 16 percent from the first quarter of 2019 driven by a 14 percent decline in organic sales, with the impact of COVID-19 driving 3 percent of the decline.

“While most of our plants are still operating and our businesses are deemed essential by almost all governments around the world, the reduction in global growth and economic uncertainty will have a significant impact on our outlook for Q2 and the rest of the year,” said Craig Arnold, Eaton chairman and chief executive officer.