Eaton Corp. announced record net income per share of $1.71 for the third quarter of 2007, an increase of 6 percent over net income per share of $1.62 in the third quarter of 2006. Sales in the quarter
were a record $3.30 billion, 7 percent above the same period in 2006. Net income was $258 million compared to $248 million in 2006, an increase of 4 percent.
Before acquisition integration charges, operating earnings per share in the third quarter of 2007 were $1.79 versus $1.65 in 2006, an increase of 8 percent. Included in the third quarter results was a gain from discontinued operations of $0.12 per share, which compares to a gain of $0.24 per share in the third quarter of 2006. Without those gains, operating earnings per share in the third quarter 2007 were $1.67 versus $1.41 in 2006, an increase of 18 percent.
Alexander M. Cutler, Eaton chairman and chief executive officer, said, "We are pleased with our third quarter results. Sales growth of 7 percent in the quarter consisted of 1 percent from organic growth, 3 percent from acquisitions, and 3 percent from exchange rates. We outgrew our end markets by 5 percent this quarter, which was offset in large part by a 4 percent reduction in our end markets, resulting in 1 percent organic growth.
"Eaton's diversification strategy is working. Our improved geographic and business balance allowed us to post record earnings per share in the third quarter despite a 55 percent decline in the NAFTA heavy-duty truck market," said Cutler. "For the second quarter in a row, our Electrical and Fluid Power businesses made up almost 70 percent of segment operating profits.
"Our margin performance in the third quarter was also strong, with our segment operating margin before acquisition integration charges of 13.4 percent setting a quarterly record," said Cutler. "We are particularly pleased with our strong margins in Electrical, at 13.1 percent, and in Truck, at 17.6 percent."