NEW YORK (AP) - Diversified manufacturer Eaton Corp. said Friday that its second-quarter net income jumped 29 percent, boosted by contributions from its acquisition of Cooper Industries.
NEW YORK (AP) — Diversified manufacturer Eaton Corp. said Friday that its second-quarter net income jumped 29 percent, boosted by contributions from its acquisition of Cooper Industries.
The results fell slightly short of Wall Street predictions and the company lowered the top-end of its previous full-year profit guidance, warning that it now expects its markets to grow less than previously expected.
Eaton shares fell 4 percent in morning trading.
The Dublin, Ireland-based company earned $494 million, or $1.04 per share, for the April-June period, up from $382 million, or $1.13 per share, in the same quarter of 2012. The company's per-share earnings fell because the company had 476.3 million outstanding shares in the latest quarter while it had only 339.5 million outstanding shares a year ago.
Excluding one-time items, the company posted adjusted profit of $1.09 per share. Analysts surveyed by FactSet expected earnings of $1.11 per share.
Revenue rose 38 percent to $5.6 billion from $4.07 billion. Analysts, on average, expected $5.76 billion in revenue, according to FactSet.
The company said that excluding acquisitions, its core sales fell 2 percent, citing soft conditions in several of its markets stemming from continued lackluster economic conditions.
Eaton said it now expects its markets to grow just 1 percent this year, down from its previous prediction of 2 percent to 3 percent growth, citing lower-than-expected economic growth.
Eaton lowered the top end of its previous full-year guidance by 20 cents, saying that it now expects a profit of $4.05 to $4.25 per share. Analysts expect $4.34 per share.
The company also projected an adjusted third-quarter profit of 1.05 to $1.15 per share, below analysts' expectations of $1.22 per share.
Eaton shares fell $2.43, or 3.5 percent, to $67.50 in morning trading. Its shares had hit a 52-week high of $70.07 on Thursday. They traded as low as $43.06 last September.