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Eaton Corp. reported higher net income in the third quarter amid lower revenue as its electrical segments led the gains.
Net income for the period ended Sept. 30 jumped to $602 million, or $1.44 per diluted share, compared with $416 million, or 95 cents, in the 2018 period.
Revenue slipped to $5.31 billion compared with $5.41 billion a year earlier.
“We had all-time record margins in three of our segments — electrical products, electrical systems and services, and aerospace. Together, these three segments represent nearly 80% of our segment operating profits,” Eaton Chairman Craig Arnold said in an Oct. 29 release. “We continue to generate very strong operating cash flows of $1.1 billion, up 8% over Q3 2018 and another quarterly record.”
The vehicle segment posted sales of $761 million, down 13% from the third quarter of 2018. Operating profits were $139 million, down 16% compared with a year earlier, according to the Dublin, Ireland-based company.
“Our revenue in vehicle declined due to global weakness in light vehicle markets, as well as revenues that transferred over to the Eaton Cummins joint venture [for an automated transmission],” Arnold said.
Eaton reported the NAFTA Class 8 market remains solid, and forecast production to be roughly 340,000 units this year, up 5% compared with 2018.
For the U.S. commercial vehicle market, Eaton supplies clutches, transmissions, hoses, fittings, diagnostics tools and lubricants. — Transport Topics
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