Eaton, which acquired Copper Industries for €9.3 billion in Ireland's biggest deal of 2012, has reported a 21 per cent rise in quarterly profit, helped by lower costs.
The maker of electrical and hydraulics systems said selling and administrative costs fell 10 per cent in the fourth quarter ended December 31st, while research and development expenses fell 7 per cent.
Lower costs have held up Eaton’s profitability in the past two quarters as sales were hit by weak demand in markets outside North America as well as a stronger dollar, which has risen about 19 per cent since July against a basket of major currencies.
Eaton's 2015 organic revenue is expected to rise 3-4 per cent in 2015, chief executive Alexander Cutler said in a statement on Tuesday. The dollar's strength, however, would reduce revenue by about 4 per cent, he said.
Analysts on average were expecting net revenue to rise about 1.7 per cent to $22.94 billion.
Eaton’s revenue inched up 0.7 per cent to $5.57 billion in the fourth quarter. Excluding the impact of foreign exchange, revenue rose 5 per cent, the strongest quarter in three years, the company said.
Net profit attributable to shareholders rose to $581 million, or $1.23 per share, from $479 million, or $1.00 per share, a year earlier.
Eaton’s shares had fallen 8 per cent to Monday’s close of $64.40 in the past 52 weeks, compared with a 16 per cent rise in the S&P 500 index.
Eaton agreed to buy Cooper Industries, an Irish-based maker of electrical equipment, in May 2012 in a deal which was completed in November of that same year.
Additional reporting: Reuters
