CLEVELAND – Eaton Corp. has announced net income per share of 91 cents for the first quarter of 2012, an increase of 10 percent over the first quarter of 2011. Sales in the quarter were a first quarter record of $4 billion, 4 percent above the same period in 2011. Net income was $311 million, up 8 percent over the first quarter of 2011.
Net income in both periods included charges for integration of acquisitions. Before acquisition integration charges, operating earnings per share in the first quarter of 2012 were 92 cents, an increase of 10 percent over the first quarter of 2011. Operating earnings for the first quarter of 2012 were $313 million, an increase of 8 percent over 2011.
Alexander Cutler, Eaton chairman and CEO, said, “We set first quarter records in sales, segment operating margins and earnings per share. Our earnings per share in the first quarter exceeded the high end of our earnings guidance. Our markets grew modestly during the first quarter, increasing 4 percent over the first quarter of 2011. The 4 percent sales growth in the first quarter consisted of 4 percent organic growth and 1 percent growth from acquisitions, partially offset by a 1 percent decline from lower foreign exchange rates.
“We entered 2012 expecting it would be a year of subpar global economic growth, leading to approximately 5 percent growth in our markets,” said Cutler. “We continue to believe that for the full year markets will grow 5 percent, but we now believe the rate of growth in our U.S. markets will be higher than originally expected and the rate of growth in our non-U.S. markets will be lower than originally expected.
“We anticipate operating earnings per share for the second quarter of 2012, which exclude charges to integrate our recent acquisitions, to be between $1.05 and $1.15, and net income per share to be between $1.04 and $1.14. Having raised our full year operating earnings per share guidance by $0.05 in February, we are now raising our guidance by an additional $0.10 to between $4.30 and $4.70, and for net income per share to between $4.23 and $4.63.
“For full year 2012, we expect another record year, with revenue growth of 7.5 percent and operating earnings per share growth of 14 percent,” said Cutler. “These growth numbers represent strong performance in an uncertain global growth environment.”
Eaton’s Automotive segment posted first quarter sales of $426 million, down 4 percent from the first quarter of 2011. The 4 percent decline was made up of 3 percent core growth offset by a 3 percent decline due to foreign exchange and a 4 percent decline due to the divestiture we completed in the fourth quarter of 2011. Global automotive markets were up 4 percent. The segment reported operating profits of $44 million, down 12 percent compared to the first quarter of 2011.
“We now believe our automotive markets in 2012 will grow 4 percent, 1 percent lower than our prior forecast,” said Cutler.
