By Matt Grossman
Eaton Corp. PLC on Tuesday logged posted a stronger first-quarter profit, despite a decline in revenue related to the divestiture of one of its business lines.
The Ireland-based power-components company logged first-quarter net income attributable to shareholders of $1.14 a share, up from $1.07 a share a year earlier. The company's total net income attributable to shareholders was $458 million, up from $438 million.
Accounting for one-time items, the company's adjusted earnings were $1.44 a share, it said. Analysts surveyed by FactSet had forecast an adjusted profit of $1.24 a share.
Eaton said sales fell to $4.69 billion from $4.79 billion. Analysts had forecast $4.55 billion.
The company said the divestiture of Eaton's lighting business had caused a negative effect on the company's sales of 5.5%. On an organic basis, sales grew by half a percent.
Aerospace sales fell 24% year over year as the coronavirus pandemic continued to cause a downturn in commercial aviation, and the lighting divestiture caused a 9% decline in electrical sales in the Americas, the company said. Global electrical sales grew by 10% year over year, and hydraulics sales were up by 11%, it said.
Sales from Eaton's vehicle segment rose by 9%. Revenue from Eaton's eMobility division, which works on electric-vehicle technology, grew by 15%, the company said.
Segment margins were 17.7%, an improvement of 1.9 percentage points over the year-earlier level, Eaton said.
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(END) Dow Jones Newswires
May 04, 2021 07:07 ET (11:07 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.