Eaton has revealed that it made US$483mn in operating earnings in the first quarter of 2014, excluding pre-tax charges of $66mn to integrate recent acquisitions, which is a 21 per cent growth on the same period last year
The global power management company, having released its financial results for the first month ending 31 March, has also experienced a 20 per cent increase in its operating earnings per share which, excluding charges of $0.09 per share for recent acquisitions, were $1.01.
Eaton chairman and CEO Alexander M Cutler said, ?Our first quarter results are a solid start to the year, coming in slightly above the midpoint of our range.?
Furthermore, the company?s sales in the first quarter were valued at $5.5bn, which is 3.5 per cent more than the same time in 2013.
?We entered 2014 expecting it would be a year of modest global economic growth, leading to a three per cent growth in the market,? commented Cutler. ?We continue to believe our markets will grow three per cent in 2014.?
He added, ?We anticipate operating earnings per share for the second quarter of 2014, which exclude an estimated $35mn of charges to integrate our recent acquisitions, to be $1.05 and $1.15.?
According to the CEO, this estimation does not take into account the impact that the sale of two of the company?s aerospace businesses, expected to close in the middle of the second quarter, will have on earnings.
Looking forward, in order to generate enhanced efficiencies in the hydraulics, aerospace and vehicle business sectors, Eaton expects to undertake a $40mn restructuring program during 2014?s second quarter.
Cutler said, ?We anticipate the savings generated in 2015 by the restructuring will be $35mn, or $0.07 per share."
Looking more closely at Eaton?s electrical products, operating profits for this sector in the first quarter underwent a 14 per cent rise and reached $279mn, which excludes acquisition integration charges of $29mn.
Whereas the operating profits for Eaton?s hydraulic sector were $112mn, once again removing the acquisition integration charges of $4mn, which is an increase of 24 per cent.
The Middle East is a key region for Eaton and the company is looking to grow and develop its business over the coming years. Proof of this can be found in the fact that in November 2013 the power management company set up a new Middle East headquarters in Dubai?s Jebel Ali Free Zone.
Speaking to Technical Review in the same month, Cutler said, ?We expect to achieve US$800mn in Middle East revenue by 2015.?
