John Sommers II for Transport Topics
Vehicle component maker Eaton Corp. said second-quarter earnings dropped due to settlement costs of $644 million concerning cases with Meritor Inc. and Triumph Group.
Eaton’s net income for the quarter dropped to $172 million, or 36 cents a share, from $497 million, or $1.04, a year earlier.
Net sales increased 3% to $5.8 billion, Eaton said in a July 29 statement.
Operating income, which excludes litigation costs, was $529 million, a 2% increase, the company said.
Sales in the vehicle segment increased to $1.03 billion from $1 billion the same time last year, and operating profit in the first quarter was $155 million, down 10% over the second quarter of 2013.
“During the second quarter, several unusual items impacted our earnings,” Eaton Chairman and CEO Alexander Cutler said in a statement