CLEVELAND -- Eaton Corp. has announced net income of 91 cents per share for the first quarter of 2010. Adjusting for the non-cash tax charge related to Medicare Part D due to the new U.S. health care law, net income per share was $1.05. This compares to a net loss per share of 30 cents in the first quarter of 2009.

Sales in the quarter were $3.1 billion, 10 percent above the same period in 2009. Net income was $155 million compared to a loss of $50 million in 2009.

Net income in both periods included charges for integration of acquisitions. Before acquisition integration charges, operating income per share in the first quarter of 2010 was 95 cents, or $1.09 excluding the Medicare Part D tax charge. This compares to an operating loss per share of 22 cents in the first quarter of 2009. Operating income for the first quarter of 2010 was $161 million compared to an operating loss of $36 million in 2009.

Alexander Cutler, Eaton chairman and chief executive officer, said, “We had a strong first quarter, above the high end of our earnings guidance, despite absorbing the Medicare Part D tax charge. The expanding world economy drove growth in most of our markets and our newly-reset cost structure allowed us to realize attractive incremental margins. The sales growth in the first quarter of 10 percent consisted of 5 percent organic growth and 5 percent growth due to higher foreign exchange rates. Our end markets grew 4 percent in the first quarter compared to the first quarter of 2009.

“We now anticipate our end markets for all of 2010 will grow by 6 percent,” Cutler added. “In general, we are seeing the strongest growth in Asia and Brazil, while many U.S. markets are starting to accelerate and Europe is recovering more modestly.

The company anticipates net income per share for the second quarter of 2010 to be between $1.05 and $1.15 and operating earnings per share, which exclude charges to integrate our recent acquisitions, to be between $1.10 and $1.20.

As a result of a strong first quarter and a slightly stronger market outlook for the year, the company is raising its full-year guidance for net income per share to between $4.15 and $4.45 and operating earnings per share to between $4.30 and $4.60. The increase in the full-year guidance is 13 percent for net income per share and 11 percent for operating earnings per share, and excluding the impact of the Medicare Part D tax charge, the increase is 17 percent for net income per share and 15 percent for operating earnings per share.

The Automotive segment posted first quarter sales of $374 million, up 39 percent from the first quarter of 2009. The segment posted operating profits of $42 million compared to a loss of $45 million in the first quarter of 2009. Global automotive markets were up 46 percent.

“For the year as a whole, we now anticipate global automotive markets will grow by 15 percent, with U.S. production up 31 percent and non-U.S. production up 6 percent,” said Cutler. “End market demand is recovering around the world and production is being buoyed by inventory rebuilding as well.”