Power management company Eaton Corp. reported higher first-quarter net income and modest revenue gains.
Net income for the period ended March 31 increased to $522 million, or $1.23 per diluted share, compared with $488 million, or $1.10.
Revenue inched up to $5.3 billion compared with $5.2 billion a year earlier.
“We had a very strong first quarter with good growth and better than expected margins,” Chairman and CEO Craig Arnold said in statement by the company, which is based in Dublin.
The vehicle segment posted sales of $810 million, down 9% from the first quarter of 2018. Organic sales were down 6%, and currency translation was negative 3%.
“Our revenue growth in vehicle was affected by revenues transferring over to the Eaton Cummins joint venture. The joint venture’s revenues grew 27% in the first quarter of 2019,” Arnold said. “Operating margins for vehicle in the quarter were 15.1%, an improvement of 30 basis points over 2018.”
Eaton Cummins Automated Transmission Technologies was announced in April 2017 as a 50-50 joint venture. The 12-speed automated transmission, called Endurant, was the first core product of the venture.
Eaton’s commercial vehicle products include transmissions, clutches, hoses and fittings, lubricants and diagnostic tools.
Eaton’s eMobility segment posted sales of $83 million, up 8% compared with a year earlier. Operating profits were $5 million, down 55% from the first quarter of 2018 due to increased investment in research and development. Operating margins in the quarter were 6%, Arnold said.
The unit — launched in March 2018 — combines elements of Eaton’s electrical group and vehicle group to deliver electric vehicle offerings to passenger car, commercial vehicle and off-highway vehicle manufacturers.