Eaton Corp. Q2 Profit Surges; Cuts FY15 Operating EPS View - Quick Facts

(RTTNews) - Eaton Corporation plc (ETN) reported that its net income attributable to shareholders for the second-quarter 2015 significantly increased to $535 million or $1.14 per share from $171 million or $0.36 per share in the same quarter last year.

Operating earnings per share, which exclude charges of $0.02 per share to integrate recent acquisitions, were $1.16 for the second quarter of 2015, up 5 percent over the second quarter of 2014, adjusted for the Aerospace divestitures and the litigation settlements recorded in the second quarter of 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Operating earnings for the second quarter of 2015, excluding pre-tax charges of $12 million to integrate recent acquisitions, were $543 million.

Sales in the second quarter of 2015 were $5.4 billion, 7 percent lower than the same period in 2014. Wall Street expected revenues of $5.49 billion for the quarter.

The company anticipates operating earnings per share for the third quarter of 2015, which exclude an estimated $14 million of charges to integrate recent acquisitions, but include the cost and benefits of the restructuring program, to be between $1.00 and $1.10. Analysts project third-quarter earnings of $1.30 per share.

Due to lower organic growth forecast and the impact of the restructuring actions, the company lowered its full year 2015 guidance for operating earnings per share to between $4.40 and $4.60, a decline of 6 percent from the midpoint of its prior guidance. Of the 6 percent reduction, 3 percent is due to the net cost of the restructuring program. Analysts expect annual earnings of $4.74 per share.

The company said in April that it expected operating earnings per share to be between $4.65 and $4.95 for fiscal 2015.