WASHINGTON (dpa-AFX) - Power management company Eaton Corporation plc. (ETN) reported that its net income attributable to ordinary shareholders for the second-quarter fell to $171 million from $494 million last year. On a per share basis, net income was $0.36 down from $1.04 in the prior year quarter.
Operating earnings per ordinary share was $0.41 lower than the prior year's $1.09.
Adjusted for the gain on the recent Aerospace divestitures, and the settlements and associated costs of the Meritor, Triumph Group, and related litigation, operating earnings per share were $1.11, up 2 percent over the second quarter of 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $1.14 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter rose to $5.767 billion from $5.602 billion in the previous year. Wall Street expected revenues of $5.77 billion for the quarter.
The company anticipates operating earnings per share for the third quarter of 2014, which exclude an estimated $33 million of charges to integrate its recent acquisitions, to be between $1.20 and $1.30. Analysts project third-quarter earnings of $1.33 per share.
The company lowered the top end of its full year 2014 guidance for operating earnings per share, which exclude an estimated $160 million in acquisition integration charges, and which are also adjusted for the impact of the Aerospace divestitures and the legal settlements, to between $4.50 and $4.70. Analysts project annual earnings per share of $4.74.
The $4.60 midpoint of its revised guidance represents a reduction of 10 cents, or 2 percent, from its prior guidance, reflecting the impact of lower margins in its Electrical Systems and Services segment.
The company said in April that it expected fiscal 2014 operating earnings per share of between $4.50 and $4.90, which includes the impact of the restructuring charges in the Industrial Sector.
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