By Maitane Sardon
Eaton Corp. reported a decline in net profit and sales for the third quarter, and said its outlook for the fourth quarter remains uncertain due to the impact of the coronavirus pandemic.
Quarterly net profit at the Cleveland-based power-management company was $446 million, or $1.11 a share, compared with $601 million, or $1.44 a share, for the same period last year, the company said Tuesday.
Excluding items, it reported adjusted earnings of $1.18 a share for the quarter, compared with $1.52 last year and ahead of analysts' forecasts of $1.05 a share.
Sales fell to $4.52 billion from $5.31 billion, Eaton said. Analysts had expected $4.21 billion.
The company said the divestiture of its lighting and automotive-fluid conveyance businesses reduced sales by 8%, which was partly offset by 2% growth from acquisitions.
Chief Executive Craig Arnold said: "Our third quarter was stronger than expected, with organic sales down 9%, 6% better than the midpoint of our guidance range and up 16% over the second quarter."
The company said its outlook for the fourth quarter remains uncertain because of the potential impact the pandemic will have on activity levels in North America and Europe.
Eaton said that its share repurchases totaled $1.5 billion year to date, and that it continues to target share repurchases of between $1.7 billion and $1.9 billion for the full year 2020.
Write to Maitane Sardon at email@example.com
(END) Dow Jones Newswires