Eaton recently announced that its second-quarter 2019 earnings per share were $1.50, and adjusted earnings per share were $1.53 (excluding acquisitions and divestiture transactions and integration costs of $0.03 per share). In the second quarter of 2018, it increased by 10%.
Sales in the second quarter of 2019 were $5.5 billion (approximately RMB 37.869 billion), an increase of 1% from the second quarter of 2018. Sales growth included an organic sales growth of 2.5%.
Eaton’s Chairman and CEO Craig Arnold said: “We performed well in the second quarter, with adjusted earnings per share at the high end of the forecast range. The organic growth rate was 2.5%, reflecting a slowdown in global growth, especially in Europe and China, our second-quarter profit margin was 17.9%, a record high, higher than the estimated high end. This is an increase of 90 basis points in the second quarter of 2018. We have reached a record high in three areas. Records: electrical products, electrical systems and services, and aerospace."
Among them, the sales of the electrical products division were $1.8 billion, an increase of 2% over the second quarter of 2018. Organic sales increased by 4%, partially offset by a 2% negative currency conversion. Operating profit was $361 million, after deducting the $1 million transaction cost associated with the stripped lighting business, adjusted operating profit reached $362 million, a record high, up 8% from the second quarter of 2018.
“The operating profit margin for the second quarter was 19.5%. After deducting the costs associated with the divestiture business, the adjusted operating margin was 19.6%, an increase of 110 basis points over 2018, a record high,” said Craig Arnold. “Affected by the continued growth of the US residential and commercial construction market, orders in the second quarter increased by 1% from the second quarter of 2018, partially offsetting the impact of weak industrial markets.”
“The operating cash flow in the second quarter was US$880 million, a record for the second quarter. The operating cash flow in the first half of the year was US$1.43 billion, a record for the first half of the year. We now expect the operating cash flow for the full year of 2019 to be between 3.3 billion and 3.5 billion. The US dollar is $200 million higher than our previous expectations," Craig Arnold said.
