DUBLIN—Eaton Corp.'s net income and overall sales increased for the first quarter 2014.
The firm reported net income at $441 million, up from $380 million in 2013, and sales at $5.49 billion, up about 3 percent compared to 2013.
“Our first quarter results are a solid start to the year, coming in slightly above the midpoint of our range in spite of the negative impact from the severe winter weather we encountered in North America,” said Chairman and CEO Alexander M. Cutler.
Cutler said the firm entered 2014 expecting modest global economic growth of 3 percent, a figure Eaton continues to forecast for the rest of 2014.
Eaton said it expects to incur restructuring costs of $40 million during the second quarter of 2014 to enhance efficiencies in the industrial sector—its hydraulics, aerospace and vehicle business segments. Cutler said the firm anticipates savings of $35 million to be generated in 2015 through the initiative.
The hydraulics segment reported sales of $782 million, a 3 percent increase over 2013 with operating profits at $108 million. Excluding integration charges of $4 million, operating profits increased 24 percent compared to 2013.
“The hydraulics markets in the first quarter of 2014 grew modestly over the first quarter of 2013,” Cutler said. “Our bookings in the quarter increased 9 percent over the first quarter of 2013.”