Eaton Raises Dividend by 9 Percent
Eaton Corporation announced net income per share of $1.27 for the second quarter of 2003, an increase of 5 percent over net income per share of $1.21 in the second quarter of 2002. Sales in the quarter were $2.03 billion, 8 percent above last year. Net income was $93 million compared to $88 million in 2002.
Net income in both periods included charges related to restructuring activities. Before these charges, 2003 second quarter operating earnings per share were 10 percent above 2002, with 2003 operating earnings per share of $1.36 versus $1.24 per share in 2002. Operating earnings for the second quarter of 2003 were $99 million compared to $90 million in 2002.
For the first half of 2003, sales were $3.95 billion, 10 percent higher than in 2002. Net income of $165 million increased 36 percent over last year, and net income per share of $2.27 rose 35 percent above 2002. Excluding restructuring charges in both periods, operating earnings in the first half of 2003 increased to $176 million, 13 percent more than in 2002, and operating earnings per share of $2.42 rose 12 percent compared to last year.
Second quarter sales of Fluid Power, Eaton's largest business segment, posted an all-time quarterly record of $703 million, 12 percent above one year earlier, and excluding the impact of the Boston Weatherhead and Mechanical Products acquisitions, up 4 percent over the second quarter of 2002. This compares to a decline of 5 percent in Fluid Power's markets, with North American fluid power industry shipments down about 8 percent, commercial aerospace markets off 18 percent, and defense aerospace markets up by 16 percent. Operating profits in the second quarter were $63 million. Operating profits before restructuring charges were $67 million, up 14 percent compared to a year earlier.
"We do not anticipate a recovery in the traditional mobile and industrial hydraulics markets until next year. The construction and agricultural equipment markets have shown little growth, despite earlier expectations that they would post moderate growth in 2003," said Cutler. "The decline in the commercial aerospace market has occurred as we expected. Military aerospace markets have been strong, largely offsetting the decline in the commercial markets."
During the second quarter, Eaton unveiled the world's first 5000-psi commercial aircraft hydraulic pump, designed specifically for use on the new Airbus A380. This new higher pressure technology will provide commercial aircraft with more powerful hydraulic systems at lower weight.
Source: Eaton Corporation plc