Eaton Corp. plc (NYSE: ETN) saw a drop in net income in the fourth quarter of 2012 as it closed on the parent company of Salina’s Cooper Crouse-Hinds.
Net income in the quarter totaled $179 million, or 46 cents per share, for Dublin–based Eaton. That was down 51 percent from the same period in 2011. The company took on more than $150 million in transaction costs as a result of acquiring Cooper Industries plc.
Cooper Industries operates the Cooper Crouse-Hinds division, which is headquartered in Salina at the corner of Wolf Street and 7th North Street. The division produces electrical equipment for harsh and hazardous environments.
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It was part of an $11.8 billion deal Eaton announced in May to acquire Cooper Industries. Eaton closed on that deal Nov. 30.
“We closed the acquisition of Cooper at the end of November and are off to a great start on the integration of Cooper into Eaton,” Eaton Chairman and CEO Alexander Cutler said in a news release. “As we had previously communicated, the closing of the Cooper transaction resulted in several unusual financial impacts to our fourth quarter results. Among these were $152 million of transaction costs reflected in our fourth-quarter results. We also incurred $24 million of acquisition integration charges in the quarter.”
Operating earnings at Eaton — which do not include acquisition integration charges or transaction costs — declined 14 percent from the fourth quarter of 2011 to $316 million. Sales rose 7 percent to $4.3 billion. They were buoyed by a sales increase of 14 percent from acquisitions.
“Of the 14 percent sales growth from acquisitions, Cooper represented 12 percent,” Cutler said.
For the full year of 2012, Eaton’s sales grew 2 percent to $16.3 billion. Net income notched $1.22 billion, $3.46 per share.
The company’s new Cooper segment posted fourth-quarter sales of $470 million with operating profits of $66 million.
Eaton’s products, systems, and services center on power management for electrical, hydraulic, and mechanical power. It employs about 103,000 people and sells to customers in 175 countries.
Contact Seltzer at rseltzer@cnybj.com
