Eaton Corp. on Tuesday announced it increased profit in the final quarter of 2014 by 21% from the same time a year ago.

Net income totaled $585 million compared to $482 while earnings per diluted share moved higher to $1.23 from $1.

Sales in the quarter totaled $5.6 billion, 1% over the same period in 2013.

“We had a strong quarter, posting attractive organic growth, record fourth quarter segment margins of 15.9%, and operating earnings per share above the high end of our guidance range,” said Alexander M. Cutler, Eaton chairman and CEO of the Dublin, Ireland-based company. “We generated record operating cash flow of $944 million in the fourth quarter.”

For the full year 2014, sales were a record $22.6 billion, 2% higher than in 2013. Net income in 2014 was $1.803 billion, down from $1.873 billion in 2013. Diluted earnings per share fell to $3.76 from $3.90 during the same time period.

“Our full year 2014 sales increase of 2% reflects organic growth of 4 percent, partially offset by 1% from negative foreign exchange and 1% from the divestitures,” said Cutler. “During 2014, our markets grew more slowly than we had expected. Despite that, operating earnings per share grew 13%, reflecting strong performance by our businesses as well as success in achieving the integration savings targeted from the Cooper acquisition.

Eaton’s vehicle segment posted sales of $965 million in the fourth quarter, up 4% over the fourth quarter of 2013. Operating profit was $163 million, up 28% over the fourth quarter of 2013. For the full year the segment posted sales of $4 billion compared to $3.8 billion a year earlier while operating profit increased to $645 million from $592 million.

“In spite of the negative impact of foreign exchange and a higher anticipated tax rate, we expect that 2015 operating earnings per share will set another record,” said Cutler. “For the first quarter, operating earnings per share, which exclude an estimated $15 million of charges to integrate our recent acquisitions, are expected to be between 95 cents and $1.05 per share. For the full year 2015, we estimate that operating earnings per share, which exclude an estimated $45 million of charges to integrate our recent acquisitions, will be between $4.75 and $5.05 per share.”

Eaton is described as a "power management company" with interests in the electrical, hydraulic and mechanical sectors, including in the truck component business.