Eaton Beats Earnings Predictions on America's Growth

Eaton

, a power management company, beat earnings predictions as electronic sales in the Americas climbed 13%. Net income for Eaton increased 8% to $311 million in the first quarter of 2012 from $287 million a year earlier. Sales climbed the most in the electrical Americas unit, which saw $1.09 billion in sales, up from $964 million a year earlier as bookings increased in residential and non-residential construction, service and other areas. Earnings per share topped the company's guidance by seven cents amid a more favorable exchange rate, lower tax rate, and improved performance, the Cleveland, Ohio-based company said in a statement issued today. The company rose it's guidance for 2012 saying it expected a record full year with revenue growth of 7.5%. The company increased its US outlook to 9% growth in the market versus 6%. It expects that growth to offset continuing weak European market conditions and lower-than anticipated emerging market growth. Electronics outside of the Americas posted the largest decrease in sales, falling from $743 million to $651 million as European markets declined 7% and bookings for equipment decreased 6%. Eaton doesn't expect the market to improve until the second half of the year. Eaton acquired hydraulic and industrial hose manufacturer Polimer Kauçuk Sanayi ve Pazarlama A.Ş. in February to increase the company's global footprint, according to a press release issued at the time of the acquisition. Eaton announced a planned increased in 2012 earnings per share of 3 cents following the acquisition of the company, which had 2011 net sales of about $335 million. Eaton also acquired a majority stake in South Korea-based Jeil Hydraulics, a motor and value manufacturer for construction equipment. The April deal will allow the company more opportunities for growth in the region, Eaton said in a press release. Eaton anticipates operating earnings per share to be between $4.30 and $4.70 per share as the company rose its guidance for the second time this year. At the end of 2011 the company said it anticipated earnings per share between $4.13 and $4.53. Earnings for the company are anticipated to be about $4.44 cents per share according to analysts surveyed by Reuters.