CLEVELAND — Diversified industrial manufacturer Eaton Corp. has announced net income of $1.16 per share for the fourth quarter of 2004, an increase of 61 percent over fourth quarter 2003 net income per share of 72 cents. Sales for the quarter were $2.63 billion, 26 percent above the same period in 2003, a quarterly record for the company. Net income was $183 million compared to $114 million in 2003, an increase of 61 percent.
Net income in both periods included charges related to restructuring activities, according to the company. Before restructuring charges, operating earnings per share in the fourth quarter of 2004 were $1.23 versus 77 cents per share in 2003, an increase of 60 percent. Operating earnings for the fourth quarter of 2004 were $194 million compared to $122 million in 2003, an increase of 59 percent.
The company said net income and operating earnings in the fourth quarter were impacted by a $30 million after-tax gain from resolution of tax issues, a $10 million after-tax charge to exit a legacy tire and refrigeration valve manufacturing business that does not fit Eaton’s long-term strategy, and an $8 million after-tax contribution to Eaton’s charitable fund. These items increased net income and operating earnings in the quarter by 8 cents per share.
For the full year 2004, sales were $9.82 billion, 22 percent above 2003. Net income of $648 million increased 68 percent over 2003, and net income per share of $4.13 rose 61 percent. Operating earnings per share for 2004 of $4.30 rose 58 percent above 2003. Operating earnings in 2004 totaled $675 million versus $410 million in 2003, an increase of 65 percent.
For more information about Eaton, go to: www.eaton.com.
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