Power management company Eaton Corp. notched a double-digit gain in net income during the second quarter amid its highest quarterly rate of sales growth in nearly seven years.
Net income for the period ended June 30 rose 18% to $610 million, or $1.39 per share, compared with the second quarter of 2017.
Revenue reached $5.5 billion, up 7% compared with the same period in 2017.
“We had a strong second quarter, with revenues and earnings per share coming in above the high end of the guidance we provided,” Chairman and CEO Craig Arnold said in a statement. “Coming into the quarter, we expected organic sales would be up 5%. Our actual organic sales growth was 7%, our highest quarterly rate of growth since the fourth quarter of 2011.”
Its segment margins were 17%, an all-time quarterly record, the Dublin-based company reported.
The vehicle segment posted sales of $899 million, up 6% compared with a year earlier. That reflected organic sales up 11% that were partially offset by a negative 5% as a result of the formation of the Eaton Cummins joint venture in 2017.
The companies announced their 50-50 joint venture — Eaton Cummins Automated Transmission Technologies — which includes transmissions for medium-duty trucks, in April 2017. Its first core product is the Endurant, a 12-speed automated transmission.
Operating profits at the vehicle segment rose 18% to $166 million compared with a year earlier.
Operating margins in the quarter were 18.5%, an improvement of 180 basis points over 2017. The company continued to forecast NAFTA Class 8 production in 2018 to be 295,000 units.
The eMobility segment reported sales of $83 million, up 15% year-over-year. Organic sales were up 14% and currency translation was positive 1%.
Operating profits were $14 million, up 8% over the second quarter of 2017. Operating margins in the quarter were 16.9%.
The unit combines elements of Eaton’s electrical group and vehicle group to deliver electric vehicle solutions to passenger car, commercial vehicle and off-highway vehicle manufacturers.