Published

Eaton Trims Sales Outlook as Earnings Soar

Eaton Corp. reports its adjusted net income in the second quarter more than tripled to $535 million.
#economics

Share

Eaton Corp. reports its adjusted net income in the second quarter more than tripled to $535 million. But the strong dollar contributed to a 7% drop in net sales to $5.4 billion.

A 1% decline in organic sales growth for the period has prompted the Dublin, Ireland-based company to reduce its full-year sales forecast to 0%-1% from its previous guidance of a 3% expansion.

CEO Sandy Cutler says Eaton will launch a new cost-cutting campaign that includes a request that mid-level salaried employees take an unpaid week off in the third quarter. The company will take a $120 million restructuring charge in the second half.

RELATED CONTENT

  • On Global EV Sales, Lean and the Supply Chain & Dealing With Snow

    The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future

  • On Headlights, Tesla's Autopilot, VW's Electric Activities and More

    Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.

  • China and U.S. OEMs

    When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.

Gardner Business Media - Strategic Business Solutions