UPDATE: Eaton Posts Higher Q3 Earnings

Eaton Corp

reported upbeat earnings for the third quarter and narrowed its operating earnings forecast for the full year. Eaton now projects full-year operating earnings of $4.55 to $4.65 per share, versus its earlier outlook of $4.50 to $4.70 per share. The Dublin, Ireland-based company reported a quarterly profit of $602 million, or $1.26 per share, up from $510 million, or $1.07 per share, in the year-ago period. Excluding certain items, the company's operating earnings climbed to $1.29 per share from $1.12 per share. Eaton had estimated operating earnings of $1.20 to $1.30 per share. Its sales climbed to $5.73 billion from $5.61 billion. However, analysts were expecting earnings of $1.23 per share on revenue of $5.80 billion. Sales in its electrical products segment gained 3% to $1.9 billion, while sales from electrical services and systems for buildings rose 1% to $1.7 billion. Hydraulics segment sales fell 1% to $733 million, while aerospace segment sales rose 1% to $454 million. Vehicle segment sales surged 5% to $1.0 billion in the quarter. Operating cash flow, excluding legal settlements, came in at $943 million in the quarter. Alexander M. Cutler, Eaton chairman and chief executive officer, said, “We had a very strong quarter, setting numerous performance records at both the segment and corporate level. Third quarter results came in near the high end of our guidance for the quarter.” Eaton shares rose 0.34% to $65.00 in pre-market trading.