Power management company Eaton Corp. (NYSE: ETN) reported higher second-quarter sales and earnings on Tuesday (July 30) despite a double-digit operating profit decline in its vehicle segment.
Company-wide second-quarter net income was $636 million compared with $611 million in the same period a year ago. Adjusted earnings per share were $1.50, up 10 percent over the $1.39 per share reported in the year-earlier quarter.
Sales in the second quarter of 2019 were $5.5 billion, up 1 percent over the second quarter of 2018. The sales increase consisted of 2.5 percent growth in organic sales, partially offset by 1.5 percent in currency losses.
Eaton's vehicle segment posted second-quarter operating profits of $136 million, down 18 percent from the second quarter of 2018. Sales were $803 million, down 11 percent from the year-ago period. Organic sales were 9 percent lower. Currency losses accounted for negative 2 percent of the decline.
"Revenue declined due to global weakness in light vehicle markets, as well as revenues that transferred over to the Eaton Cummins joint venture," said Craig Arnold, Eaton chairman and CEO.
Revenue at the joint venture, which makes automated transmissions for heavy-duty trucks, grew 11 percent over the second quarter of 2018.
Overall, Eaton set a second-quarter margin record of 17.9 percent based on record performances in its Electrical Products, Electrical Systems and Services, and Aerospace segments.
Eaton, which manages electrical, hydraulic and mechanical power systems, repurchased $260 million in company shares in the quarter, bringing first-half repurchases to $410 million. The company projects full-year earnings per share of $5.77 to $5.97.
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