Eaton 1Q Profit Climbs as Margins Increase
04 May 2021 - 9:22PM
Dow Jones News
By Matt Grossman
Eaton Corp. PLC on Tuesday logged posted a stronger
first-quarter profit, despite a decline in revenue related to the
divestiture of one of its business lines.
The Ireland-based power-components company logged first-quarter
net income attributable to shareholders of $1.14 a share, up from
$1.07 a share a year earlier. The company's total net income
attributable to shareholders was $458 million, up from $438
million.
Accounting for one-time items, the company's adjusted earnings
were $1.44 a share, it said. Analysts surveyed by FactSet had
forecast an adjusted profit of $1.24 a share.
Eaton said sales fell to $4.69 billion from $4.79 billion.
Analysts had forecast $4.55 billion.
The company said the divestiture of Eaton's lighting business
had caused a negative effect on the company's sales of 5.5%. On an
organic basis, sales grew by half a percent.
Aerospace sales fell 24% year over year as the coronavirus
pandemic continued to cause a downturn in commercial aviation, and
the lighting divestiture caused a 9% decline in electrical sales in
the Americas, the company said. Global electrical sales grew by 10%
year over year, and hydraulics sales were up by 11%, it said.
Sales from Eaton's vehicle segment rose by 9%. Revenue from
Eaton's eMobility division, which works on electric-vehicle
technology, grew by 15%, the company said.
Segment margins were 17.7%, an improvement of 1.9 percentage
points over the year-earlier level, Eaton said.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
May 04, 2021 07:07 ET (11:07 GMT)
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