CLEVELAND – Eaton Corp. has announced net income per share of $1.07 for the fourth quarter of 2011, a 30 percent increase over net income per share of 82 cents in the fourth quarter of 2010. Net income in both periods included charges related to acquisition integration. Before acquisition integration charges, operating earnings per share in the fourth quarter of 2011 were $1.08 compared to 85 cents per share in the fourth quarter of 2010, an increase of 27 percent.
Sales in the quarter were $4 billion, 10 percent higher than the same period in 2010. Net income was $362 million compared to $280 million in 2010, an increase of 29 percent. Operating earnings, which exclude acquisition integration charges, for the fourth quarter of 2011 were $366 million compared to $291 million in 2010, an increase of 26 percent.
For the full year 2011, sales were $16 billion, 17 percent higher than 2010. Net income was $1.35 billion, an increase of 45 percent over 2010, and net income per share of $3.93 was 44 percent more than in 2010. Operating earnings in 2011 totaled $1.36 billion, an increase of 42 percent over 2010. Operating earnings per share for 2011 of $3.96 were 41 percent higher than in 2010.
“Our full year 2011 sales increase of 17 percent reflects strong growth, despite a volatile global economy over the course of 2011,” said Alexander Cutler, chairman and CEO. “We increased our earnings guidance three times during 2011, reflecting stronger markets than we had anticipated at the start of the year. Looking back at 2011, it was a record year on many dimensions. Sales exceeded $16 billion for the first time, our segment operating margin rose by 1 1/2 percentage points to 14.2 percent, emerging markets as a percentage of sales were 27 percent, and operating earnings per share were 15 percent above our previous record. We completed nine acquisitions in 2011, acquiring businesses, which had total revenues in 2011 of approximately $320 million. While the global economic outlook for 2012 is uncertain due principally to the sovereign debt problems within the Eurozone, we remain confident that 2012 is likely to be a year of solid growth in our overall global markets."
Cutler added that Eaton estimates its markets for 2012 will grow 5 percent, with U.S. markets a bit stronger than markets outside the U.S.
"We expect to outgrow our end markets in 2012 by approximately $320 million,” said Cutler. “We anticipate incremental revenues in 2012 from acquisitions net of divestitures completed in 2011 to be $90 million. Changes in exchange rates in 2012 are expected to reduce revenues by approximately $550 million. Overall, we anticipate our revenues in 2012 will grow by 4 percent compared to 2011."
