Eaton Notches Third-Quarter Gains, Cites Class 8 Market
Eaton Corp. improved third-quarter revenue and earnings, in part, on the improved strength of the Class 8 market.
Eaton, based in Dublin, reported net income for the period ended Sept. 30 of $1.4 billion, or $3.14 per share, up from $523 million, or $1.15, in last year’s third quarter.
However, net income was $1.25 per share when excluding a gain of $1.89 per share for the formation of the Eaton Cummins Automated Transmission Technologies joint venture. Eaton received $500 million in cash for a 50% interest in the business.
Analysts expected $1.25 a share.
Net sales came in at $5.2 billion, an increase of nearly 5% from $4.9 billion a year ago.
The electric products unit saw sales of $1.9 billion, up 5% from a year ago, and profits of $346 million, a rise of nearly 5%.
“North American Class 8 truck production grew 34% in the third quarter,” Eaton Chairman Craig Arnold said. “We now expect full-year 2017 production to be 250,000 units.”
Eaton designs and manufactures transmissions, clutches, and fluid and air conveyance solutions for the commercial vehicle industry.