CLEVELAND -- Eaton Corp. has announced net income per share of $1.63 for the fourth quarter of 2010, a 30 percent increase over net income per share of $1.25 in the fourth quarter of 2009. Net income in both periods included charges related to acquisition integration. Before acquisition integration charges, operating earnings per share in the fourth quarter of 2010 were $1.69 compared to $1.35 per share in the fourth quarter of 2009, an increase of 25 percent.

“Our fourth quarter results were very strong, substantially exceeding the high end of our guidance despite recording a pretax provision of $36 million, or 15 cents per share after tax, during the quarter for a Brazilian legal judgment,” said Alexander Cutler, Eaton chairman and CEO.

Sales in the quarter were $3.7 billion, 17 percent higher than the same period in 2009. Net income was $280 million compared to $211 million in 2009, an increase of 33 percent. Operating earnings, which exclude acquisition integration charges, for the fourth quarter of 2010 were $291 million compared to $229 million in 2009, an increase of 27 percent.

For the full year 2010, sales were $13.7 billion, 16 percent higher than 2009. Net income was $929 million, an increase of 143 percent over 2009, and net income per share of $5.46 was 141 percent more than in 2009. Operating earnings in 2010 totaled $956 million versus $437 million in 2009, an increase of 119 percent. Operating earnings per share for 2010 of $5.61 were 117 percent higher than in 2009.

“Our full year 2010 sales growth of 16 percent reflects a rebound from the depressed market levels of 2009 and our 30 percent growth in revenues from developing countries,” said Cutler. “We are pleased with the momentum we see in our businesses and with the strong incremental earnings we have been able to generate from the additional sales volume.

“We estimate our markets for all of 2011 will grow 8 percent, with the markets in all six segments registering growth, the first year since 2006 in which the markets for all of our segments have grown. We expect to outgrow our end markets in 2011 by approximately $450 million,” added Cutler. “The incremental revenues in 2011 from our recent acquisitions are expected to total $160 million. In total, we anticipate our revenues in 2011 will grow by 12 percent compared to 2010.”

Cutler added that in light of the company’s strong 2010 results and outlook for 2011, Eaton is increasing its quarterly dividend by 17 percent. Eaton’s stock price also has risen more than 60 percent since the beginning of 2010, and the company announced this week a two-for-one stock split.