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Eaton Reports Higher Q3 Net Income, Lower Revenue
Eaton Corp. reported higher net income in the third quarter amid lower revenue as its electrical segments led the gains.
Net income for the period ended Sept. 30 jumped to $602 million, or $1.44 per diluted share, compared with $416 million, or 95 cents, in the 2018 period.
Arnold
Revenue slipped to $5.31 billion compared with $5.41 billion a year earlier.
“We had all-time record margins in three of our segments — electrical products, electrical systems and services, and aerospace. Together, these three segments represent nearly 80% of our segment operating profits,” Eaton Chairman Craig Arnold said in an Oct. 29 release. “We continue to generate very strong operating cash flows of $1.1 billion, up 8% over Q3 2018 and another quarterly record.”
The vehicle segment posted sales of $761 million, down 13% from the third quarter of 2018. Operating profits were $139 million, down 16% compared with a year earlier, according to the Dublin, Ireland-based company.
“Our revenue in vehicle declined due to global weakness in light vehicle markets, as well as revenues that transferred over to the Eaton Cummins joint venture [for an automated transmission],” Arnold said.
Eaton reported the NAFTA Class 8 market remains solid, and forecast production to be roughly 340,000 units this year, up 5% compared with 2018.
For the U.S. commercial vehicle market, Eaton supplies clutches, transmissions, hoses, fittings, diagnostics tools and lubricants. — Transport Topics
