Cooper Industries Ltd.'s (CBE) second-quarter profit plunged 45%
amid still-sliding sales at the electrical products and tool
manufacturer.
The company reported earnings of $89.3 million, or 53 cents a
share, down from $161.9 million, or 92 cents, a year earlier. Both
periods included 5 cents in charges. Revenue fell 26% to $1.27
billion.
Cooper's April forecast was earnings of 50 cents to 60 cents a
share on a revenue drop of 21% to 26%, below Wall Street's
expectations at the time.
Gross margin fell to 30.3% from 33%.
Revenue in the company's key electrical products segment, which
includes circuit-protection equipment, lighting fixtures and wiring
devices, fell 25% as profit skidded 41%.
Chairman and Chief Executive Kirk S. Hachigian said, "We did not
experience the normal seasonal increase in revenues," but "intense
cost management" helped offset that.
Cooper has responded to the demand woes by cutting nearly 3,000
jobs, or about 10% of its work force, since late last year.
Looking ahead, the company lowered the top end of its 2009
earnings target and projected third-quarter non-GAAP earnings of 60
cents to 70 cents a share. Analysts surveyed by Thomson Reuters
were expecting 66 cents.
Cooper shares closed Wednesday at $32.94 and were inactive
premarket.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com;