CLEVELAND (Oct. 22, 2008) — Eaton Corp. saw its third quarter net income climb 22 percent to $315 million and sales increase 25 percent to $4.1 billion.
The Cleveland-based firm said net income figures for both the 2007 and 2008 periods were impacted by charges related to acquisitions; before those charges were figured operating earnings rose 9 percent.
Acquisitions accounted for 19 percent of sales growth for the third quarter, Eaton said, with 4 percent from organic growth and 2 percent from exchange rates.
Eaton's improved geographic and business balance allowed it to post strong earnings despite the turmoil in the world financial markets, according to Chairman and CEO Alexander Cutler.
“The severe issues in world financial markets have started to impact markets for our products,” Cutler said. “While it is not possible to forecast with precision the prospective impact upon our end markets, prudence suggests anticipating a significant slowdown.”
Despite that, Eaton still projects fourth quarter net income per share to be between $1.55 and $1.65 a share.
Through three quarters, net income grew 21.3 percent to $895 million as sales increased 23.1 percent to $11.9 billion.