Adjusted for Gain on Aerospace Divestitures, Legal Settlements and Associated Costs, Second Quarter Operating Earnings Per Share of
Core Sales Growth in Second Quarter of 3 Percent
Lowering Top End of 2014 Operating Earnings Per Share Guidance Excluding Unusual Items, with 2 Percent Reduction to Midpoint of Range
"During the second quarter, several unusual items impacted our earnings," said Cutler. "First, we closed the divestiture of two small Aerospace businesses for a pretax gain of
"We are pleased with our strong second quarter bookings in both of our Electrical segments and in our Aerospace segment," said Cutler. "For all of 2014, we continue to forecast our end markets will grow 3 percent.
"We anticipate operating earnings per share for the third quarter of 2014, which exclude an estimated
"We are lowering the top end of our full year 2014 guidance for operating earnings per share, which exclude an estimated
Business Segment Results
Sales for the Electrical Products segment were
"Our bookings in the second quarter in the Electrical Products segment were up 6 percent over the second quarter a year ago, continuing our strong momentum of the past several quarters," said Cutler.
Sales for the Electrical Systems and Services segment were
"Our margins during the quarter were impacted by higher logistics costs, unfavorable mix, and pricing pressures," said Cutler. "We expect these factors to impact margins over the balance of the year. Bookings in the second quarter were up 7 percent from the second quarter of 2013.
"We were pleased with our strong bookings during the quarter in both of our Electrical segments," said Cutler. "For all of 2014, we continue to believe our Electrical markets will grow 3 percent."
Hydraulics segment sales were
"The Hydraulics markets in the second quarter of 2014 were modestly lower than the second quarter of 2013, with pockets of strength in industrial applications offset by weakness in agricultural equipment globally and construction equipment in
Aerospace segment sales were
"Aerospace markets in the second quarter posted another quarter of good growth, with strongest growth in the commercial OEM market, but also higher growth in the commercial aftermarket," said Cutler. "Bookings in the quarter rose 9 percent, including a 20 percent increase in aftermarket bookings. We continue to believe our Aerospace markets in 2014 will grow 3 percent."
The Vehicle segment posted sales of
"North American markets were particularly strong in the quarter while South American markets were notably weak," said Cutler. "We now expect the NAFTA Class 8 truck market to be 290,000 in 2014, up from our prior estimate of 280,000. For all of 2014, we continue to expect our Vehicle markets will grow 5 percent."
Eaton is a power management company with 2013 sales of
Notice of conference call: Eaton's conference call to discuss its second quarter results is available to all interested parties as a live audio webcast today at
This news release contains forward-looking statements concerning third quarter 2014 operating earnings per share, full year 2014 operating earnings per share, 2014 sales and margins in our Electrical segments, and the performance of our worldwide markets. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the company's control. The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the company's business segments; unanticipated downturns in business relationships with customers or their purchases from us; competitive pressures on sales and pricing; increases in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the performance of recent acquisitions; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; stock market and currency fluctuations; and unanticipated deterioration of economic and financial conditions in
The company's comparative financial results for the three months and six months ended
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