Eaton Reports Second Quarter Earnings Per Share
Strong Operating Cash Flow of $469 Million
Raising Midpoint of Earnings Per Share Guidance for 2010 by 12 Percent
Increasing Quarterly Dividend by 16 Percent
July 21, 2010 07:09 AM Eastern Daylight Time
CLEVELAND--(EON: Enhanced Online News)--Diversified industrial manufacturer (NYSE:ETN) today
announced net income per share of $1.33 for the second quarter of 2010. This compares to net income per share of
$0.17 in the second quarter of 2009. Sales in the quarter were $3.38 billion, 16 percent above the second quarter of
2009. Net income was $226 million compared to $29 million in 2009.
Net income in both periods included charges for integration of acquisitions. Before these acquisition integration
charges, operating earnings per share in the second quarter of 2010 were $1.36 compared to $0.23 per share in
2009, and operating earnings were $232 million compared to $39 million in 2009.
Alexander M. Cutler, Eaton chairman and chief executive officer, said, “Our earnings in the second quarter
substantially exceeded our expectations for the quarter, driven primarily by stronger end markets. Our sales in the
second quarter were 9 percent higher than in the first quarter of 2010, reflecting the continued expansion in our
markets around the world. While the debt problems in Europe are likely to slow the rate of growth in some
European markets, and the rate of economic growth in China has moderated slightly, we anticipate solid global
growth continuing during the second half of the year.
“Sales in the second quarter increased 16 percent compared to the second quarter of 2009,” said Cutler. “The 16
percent sales growth was comprised of 12 percent growth in end markets and 4 percent outgrowth, with no impact
from foreign exchange.
“We are pleased with our 12.2 percent segment operating margin in the second quarter, representing a 1.0
percentage point improvement over the first quarter,” said Cutler.
“Our operating cash flow for t