Eaton Reports Record Third Quarter 2024 Results, with Accelerating Orders and Continued Backlog Growth
Eaton (NYSE:ETN) reported strong Q3 2024 results with earnings per share of $2.53, up 14% year-over-year, and record adjusted earnings per share of $2.84, up 15%. Sales reached a Q3 record of $6.3 billion, up 8% from 2023. The company achieved record segment margins of 24.3% and record quarterly operating cash flow of $1.3 billion. Strong order growth was seen across segments, with Electrical Americas orders up 16% and backlog growth of 25% in Electrical and 14% in Aerospace. Based on strong performance, Eaton raised its full-year 2024 guidance, expecting adjusted earnings per share between $10.75 and $10.81, up 18% at midpoint over prior year.
Eaton (NYSE:ETN) ha riportato risultati solidi per il terzo trimestre del 2024, con utili per azione di $2.53, in aumento del 14% rispetto all'anno precedente, e un record di utili per azione rettificati di $2.84, in crescita del 15%. Le vendite hanno raggiunto un record per il terzo trimestre di $6.3 miliardi, con un incremento dell'8% rispetto al 2023. L'azienda ha ottenuto margini di segmento record del 24.3% e un flusso di cassa operativo trimestrale record di $1.3 miliardi. È stata registrata una forte crescita degli ordini in tutti i segmenti, con gli ordini dell'Electrical Americas in aumento del 16% e una crescita del backlog del 25% nell'Elettrico e del 14% nell'Aerospaziale. Sulla base di questa performace robusta, Eaton ha alzato le sue previsioni per l'intero anno 2024, prevedendo utili per azione rettificati tra $10.75 e $10.81, con un aumento del 18% rispetto al valore medio dell'anno precedente.
Eaton (NYSE:ETN) reportó resultados sólidos para el tercer trimestre de 2024, con ganancias por acción de $2.53, un incremento del 14% en comparación con el año anterior, y un récord de ganancias por acción ajustadas de $2.84, un aumento del 15%. Las ventas alcanzaron un récord para el tercer trimestre de $6.3 mil millones, un 8% más que en 2023. La compañía logró márgenes de segmento récord del 24.3% y un flujo de efectivo operativo trimestral récord de $1.3 mil millones. Se observó un fuerte crecimiento de pedidos en todos los segmentos, con los pedidos de Electrical Americas aumentando un 16% y un crecimiento en la cartera de pedidos del 25% en Electrical y del 14% en Aeronáutica. Basándose en un rendimiento sólido, Eaton aumentó su guía para todo el año 2024, esperando ganancias por acción ajustadas entre $10.75 y $10.81, un aumento del 18% en el punto medio con respecto al año anterior.
이튼 (NYSE:ETN)은 2024년 3분기 실적이 강력하게 나타났다고 보고하며 주당 순이익이 $2.53로 연간 14% 증가했으며, 조정 주당 순이익은 $2.84로 15% 증가하여 사상 최고치를 기록했습니다. 매출은 2023년 대비 8% 증가한 $63억 달러로 3분기 기준 최고치를 기록했습니다. 회사는 24.3%의 사상 최고 세그먼트 마진과 $13억 달러의 분기 운영 현금 흐름을 달성했습니다. 모든 세그먼트에서 강력한 주문 증가가 관찰되었으며, Electrical Americas의 주문이 16% 증가하고 Electrical 부문에서 25%, Aerospace 부문에서 14%의 백로그 성장을 보였습니다. 강력한 성과를 바탕으로 이튼은 2024년 전체 연간 가이드를 상향 조정하며, 조정 주당 순이익을 $10.75에서 $10.81로 예상하고 있습니다. 이는 전년 대비 중간값이 18% 증가한 수치입니다.
Eaton (NYSE:ETN) a annoncé de bons résultats pour le troisième trimestre de 2024, avec un bénéfice par action de $2.53, en hausse de 14% par rapport à l'année précédente, et un bénéfice ajusté par action record de $2.84, en hausse de 15%. Les ventes ont atteint un record de $6.3 milliards pour le troisième trimestre, soit une augmentation de 8% par rapport à 2023. L'entreprise a réalisé des marges de segment record de 24.3% et un flux de trésorerie d'exploitation trimestriel record de $1.3 milliard. Une forte croissance des commandes a été observée dans tous les segments, avec des commandes d'Electrical Americas en hausse de 16% et une croissance du carnet de commandes de 25% dans le secteur électrique et de 14% dans l'aéronautique. Sur la base de cette solide performance, Eaton a relevé ses prévisions annuelles pour 2024, s'attendant à un bénéfice ajusté par action compris entre $10.75 et $10.81, soit une augmentation de 18% par rapport à la moyenne de l'année précédente.
Eaton (NYSE:ETN) berichtete starke Ergebnisse für das dritte Quartal 2024 mit Gewinnen pro Aktie von $2.53, was einem Anstieg von 14% im Vergleich zum Vorjahr entspricht, und einem Rekord von bereinigten Gewinnen pro Aktie von $2.84, was einer Steigerung von 15% entspricht. Der Umsatz erreichte einen Rekord von $6.3 Milliarden für das dritte Quartal, was einem Anstieg von 8% gegenüber 2023 entspricht. Das Unternehmen erzielte Rekordsegmentmargen von 24.3% und einen Rekord für den operativen Cashflow des Quartals von $1.3 Milliarden. In allen Segmenten wurde ein starkes Bestellwachstum verzeichnet, mit einem Anstieg der Bestellungen in Electrical Americas um 16% und einem Zuwachs des Auftragsbestands von 25% im Bereich Electrical und 14% im Bereich Aerospace. Aufgrund der starken Leistung hob Eaton die Prognose für das gesamte Jahr 2024 an und erwartet bereinigte Gewinne pro Aktie zwischen $10.75 und $10.81, was einem Anstieg von 18% im Mittelwert im Vergleich zum Vorjahr entspricht.
- Record Q3 sales of $6.3 billion, up 8% YoY
- EPS increased 14% to $2.53, adjusted EPS up 15% to $2.84
- Record segment margins of 24.3%, up 70 basis points
- Record operating cash flow of $1.3 billion, up 15%
- Electrical Americas segment sales up 14% with record 30.1% margins
- Strong backlog growth: Electrical +25%, Aerospace +14%
- Raised full-year 2024 guidance
- Vehicle segment sales declined 7%
- eMobility segment reported $7 million operating loss
- Hurricane Helene and aerospace labor strikes impacted sales by $50 million
Insights
Eaton delivered an impressive Q3 2024 performance with several key achievements: record quarterly adjusted EPS of
The robust backlog growth (Electrical
The order acceleration in Electrical Americas (up
Notable is the company's ability to maintain margin expansion despite headwinds from Hurricane Helene and aerospace industry labor strikes, which impacted sales by approximately
-
Third quarter earnings per share of
, up$2.53 14% over 2023, and record quarterly adjusted earnings per share of , up$2.84 15% over 2023 -
Record segment margins of
24.3% , 70 basis points above the third quarter of 2023 -
8% organic sales growth, including approximately 50 basis points of headwinds from Hurricane Helene and labor strikes in the aerospace industry -
Strong backlog growth of
25% in Electrical and14% in Aerospace -
Order acceleration including Electrical Americas to
16% with 1.2 book-to-bill ratio on a rolling twelve-month basis - Raised full year 2024 segment margin, earnings per share, and adjusted earnings per share guidance
Sales in the quarter were
Segment margins were
Operating cash flow was
Craig Arnold, Eaton chairman and chief executive officer, said, “Our business and teams performed well in the quarter. We executed effectively, resulting in order acceleration and further backlog growth in an environment of continuing strong demand. As a result, we’re confident in our ability to close the year strong with raised earnings guidance and expect this positive momentum to continue into 2025.”
Guidance
For the full year 2024, the company is raising the following guidance:
-
Segment margins from 23.3
-23.7% to 23.5-23.9% -
Earnings per share to between
and$9.47 , up$9.53 18% at the midpoint over the prior year -
Adjusted earnings per share to between
and$10.75 , up$10.81 18% at the midpoint over the prior year
For the fourth quarter of 2024, the company anticipates:
-
Organic growth of 6
-7% -
Segment margins of 23.6
-24.0% -
Earnings per share between
and$2.42 $2.48 -
Adjusted earnings per share between
and$2.78 $2.84
Business Segment Results
Sales for the Electrical Americas segment were a record
The twelve-month rolling average of orders in the third quarter was up
Sales for the Electrical Global segment were a third quarter record
The twelve-month rolling average of orders in the third quarter was up
On a rolling twelve-month basis, the book-to-bill ratio for the Electrical businesses remained strong at 1.1.
Aerospace segment sales were a third quarter record
The twelve-month rolling average of orders in the third quarter was up
The Vehicle segment posted sales of
eMobility segment sales were
Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re accelerating the planet’s transition to renewable energy sources, helping to solve the world’s most urgent power management challenges, and building a more sustainable society for people today and generations to come.
Eaton was founded in 1911 and has been listed on the New York Stock Exchange for more than a century. We reported revenues of
Notice of conference call: Eaton’s conference call to discuss its third quarter results is available to all interested parties today as a live audio webcast at 11 a.m. United States Eastern time via a link on Eaton’s home page. This news release can be accessed under its headline on the home page. Also available on the website before the call will be a presentation on third quarter results, which will be covered during the call.
This news release contains forward-looking statements concerning fourth quarter and full year 2024 earnings per share, adjusted earnings per share and segment margins; fourth quarter 2024 organic growth; 2025 earnings momentum; as well as anticipated multi-year restructuring program charges and savings. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the company’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: a global pandemic such as COVID-19; geopolitical tensions or war, unanticipated changes in the markets for the company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; competitive pressures on sales and pricing; supply chain disruptions, unanticipated changes in the cost of material, labor, and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest at Eaton or at our customers or suppliers; natural disasters; the performance of recent acquisitions; unanticipated difficulties completing or integrating acquisitions; new laws and governmental regulations; interest rate changes; changes in tax laws or tax regulations; stock market and currency fluctuations; and unanticipated deterioration of economic and financial conditions in
Financial Results
The company’s comparative financial results for the three months ended September 30, 2024, are available on the company’s website, www.eaton.com.
EATON CORPORATION plc |
|
|
|
|
|
|
|
||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
||||||||||||||
(In millions except for per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
6,345 |
|
|
$ |
5,880 |
|
|
$ |
18,638 |
|
|
$ |
17,229 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of products sold |
|
3,899 |
|
|
|
3,684 |
|
|
|
11,564 |
|
|
|
11,030 |
|
Selling and administrative expense |
|
1,028 |
|
|
|
949 |
|
|
|
3,074 |
|
|
|
2,839 |
|
Research and development expense |
|
207 |
|
|
|
187 |
|
|
|
593 |
|
|
|
553 |
|
Interest expense - net |
|
29 |
|
|
|
33 |
|
|
|
88 |
|
|
|
124 |
|
Other income - net |
|
(22 |
) |
|
|
(52 |
) |
|
|
(80 |
) |
|
|
(56 |
) |
Income before income taxes |
|
1,204 |
|
|
|
1,079 |
|
|
|
3,399 |
|
|
|
2,739 |
|
Income tax expense |
|
193 |
|
|
|
187 |
|
|
|
573 |
|
|
|
463 |
|
Net income |
|
1,011 |
|
|
|
892 |
|
|
|
2,827 |
|
|
|
2,277 |
|
Less net income for noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
Net income attributable to Eaton ordinary shareholders |
$ |
1,009 |
|
|
$ |
891 |
|
|
$ |
2,823 |
|
|
$ |
2,273 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to Eaton ordinary shareholders |
|
|
|
|
|
|
|
||||||||
Diluted |
$ |
2.53 |
|
|
$ |
2.22 |
|
|
$ |
7.05 |
|
|
$ |
5.67 |
|
Basic |
|
2.54 |
|
|
|
2.23 |
|
|
|
7.08 |
|
|
|
5.70 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of ordinary shares outstanding |
|
|
|
|
|
|
|
||||||||
Diluted |
|
398.9 |
|
|
|
401.6 |
|
|
|
400.6 |
|
|
|
400.9 |
|
Basic |
|
397.1 |
|
|
|
399.4 |
|
|
|
398.7 |
|
|
|
399.0 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income attributable to Eaton ordinary shareholders to adjusted earnings |
|
|
|
|
|
|
|
||||||||
Net income attributable to Eaton ordinary shareholders |
$ |
1,009 |
|
|
$ |
891 |
|
|
$ |
2,823 |
|
|
$ |
2,273 |
|
Excluding acquisition and divestiture charges (income), after-tax |
|
(4 |
) |
|
|
14 |
|
|
|
17 |
|
|
|
54 |
|
Excluding restructuring program charges, after-tax |
|
43 |
|
|
|
5 |
|
|
|
104 |
|
|
|
37 |
|
Excluding intangible asset amortization expense, after-tax |
|
84 |
|
|
|
84 |
|
|
|
251 |
|
|
|
269 |
|
Adjusted earnings |
$ |
1,132 |
|
|
$ |
994 |
|
|
$ |
3,194 |
|
|
$ |
2,633 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to Eaton ordinary shareholders - diluted |
$ |
2.53 |
|
|
$ |
2.22 |
|
|
$ |
7.05 |
|
|
$ |
5.67 |
|
Excluding per share impact of acquisition and divestiture charges (income), after-tax |
|
(0.01 |
) |
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.14 |
|
Excluding per share impact of restructuring program charges, after-tax |
|
0.11 |
|
|
|
0.01 |
|
|
|
0.26 |
|
|
|
0.09 |
|
Excluding per share impact of intangible asset amortization expense, after-tax |
|
0.21 |
|
|
|
0.21 |
|
|
|
0.62 |
|
|
|
0.67 |
|
Adjusted earnings per ordinary share |
$ |
2.84 |
|
|
$ |
2.47 |
|
|
$ |
7.97 |
|
|
$ |
6.57 |
|
See accompanying notes. |
EATON CORPORATION plc |
|
|
|
|
|
|
|
||||||||
BUSINESS SEGMENT INFORMATION |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
||||||||||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
|
|
|
|
|
|
|
||||||||
Electrical |
$ |
2,963 |
|
|
$ |
2,594 |
|
|
$ |
8,530 |
|
|
$ |
7,426 |
|
Electrical Global |
|
1,573 |
|
|
|
1,503 |
|
|
|
4,678 |
|
|
|
4,572 |
|
Aerospace |
|
946 |
|
|
|
867 |
|
|
|
2,772 |
|
|
|
2,517 |
|
Vehicle |
|
696 |
|
|
|
753 |
|
|
|
2,143 |
|
|
|
2,242 |
|
eMobility |
|
167 |
|
|
|
163 |
|
|
|
514 |
|
|
|
471 |
|
Total net sales |
$ |
6,345 |
|
|
$ |
5,880 |
|
|
$ |
18,638 |
|
|
$ |
17,229 |
|
|
|
|
|
|
|
|
|
||||||||
Segment operating profit (loss) |
|
|
|
|
|
|
|
||||||||
Electrical |
$ |
892 |
|
|
$ |
719 |
|
|
$ |
2,537 |
|
|
$ |
1,913 |
|
Electrical Global |
|
294 |
|
|
|
328 |
|
|
|
872 |
|
|
|
892 |
|
Aerospace |
|
230 |
|
|
|
209 |
|
|
|
637 |
|
|
|
580 |
|
Vehicle |
|
135 |
|
|
|
131 |
|
|
|
381 |
|
|
|
353 |
|
eMobility |
|
(7 |
) |
|
|
— |
|
|
|
(9 |
) |
|
|
(5 |
) |
Total segment operating profit |
|
1,544 |
|
|
|
1,386 |
|
|
|
4,417 |
|
|
|
3,732 |
|
|
|
|
|
|
|
|
|
||||||||
Corporate |
|
|
|
|
|
|
|
||||||||
Intangible asset amortization expense |
|
(106 |
) |
|
|
(107 |
) |
|
|
(319 |
) |
|
|
(344 |
) |
Interest expense - net |
|
(29 |
) |
|
|
(33 |
) |
|
|
(88 |
) |
|
|
(124 |
) |
Pension and other postretirement benefits income |
|
9 |
|
|
|
11 |
|
|
|
29 |
|
|
|
33 |
|
Restructuring program charges |
|
(54 |
) |
|
|
(7 |
) |
|
|
(132 |
) |
|
|
(46 |
) |
Other expense - net |
|
(160 |
) |
|
|
(171 |
) |
|
|
(508 |
) |
|
|
(512 |
) |
Income before income taxes |
|
1,204 |
|
|
|
1,079 |
|
|
|
3,399 |
|
|
|
2,739 |
|
Income tax expense |
|
193 |
|
|
|
187 |
|
|
|
573 |
|
|
|
463 |
|
Net income |
|
1,011 |
|
|
|
892 |
|
|
|
2,827 |
|
|
|
2,277 |
|
Less net income for noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
Net income attributable to Eaton ordinary shareholders |
$ |
1,009 |
|
|
$ |
891 |
|
|
$ |
2,823 |
|
|
$ |
2,273 |
|
See accompanying notes. |
EATON CORPORATION plc |
|
|
|
||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
||
|
|
|
|
||
(In millions) |
September 30, 2024 |
December 31, 2023 |
|||
Assets |
|
|
|
||
Current assets |
|
|
|
||
Cash |
$ |
473 |
|
$ |
488 |
Short-term investments |
|
1,521 |
|
|
2,121 |
Accounts receivable - net |
|
4,886 |
|
|
4,475 |
Inventory |
|
4,178 |
|
|
3,739 |
Prepaid expenses and other current assets |
|
1,094 |
|
|
851 |
Total current assets |
|
12,152 |
|
|
11,675 |
|
|
|
|
||
Property, plant and equipment - net |
|
3,711 |
|
|
3,530 |
|
|
|
|
||
Other noncurrent assets |
|
|
|
||
Goodwill |
|
15,044 |
|
|
14,977 |
Other intangible assets |
|
4,809 |
|
|
5,091 |
Operating lease assets |
|
817 |
|
|
648 |
Deferred income taxes |
|
549 |
|
|
458 |
Other assets |
|
2,154 |
|
|
2,052 |
Total assets |
$ |
39,236 |
|
$ |
38,432 |
|
|
|
|
||
Liabilities and shareholders’ equity |
|
|
|
||
Current liabilities |
|
|
|
||
Short-term debt |
$ |
3 |
|
$ |
8 |
Current portion of long-term debt |
|
714 |
|
|
1,017 |
Accounts payable |
|
3,609 |
|
|
3,365 |
Accrued compensation |
|
687 |
|
|
676 |
Other current liabilities |
|
2,928 |
|
|
2,680 |
Total current liabilities |
|
7,941 |
|
|
7,747 |
|
|
|
|
||
Noncurrent liabilities |
|
|
|
||
Long-term debt |
|
8,678 |
|
|
8,244 |
Pension liabilities |
|
709 |
|
|
768 |
Other postretirement benefits liabilities |
|
174 |
|
|
180 |
Operating lease liabilities |
|
681 |
|
|
533 |
Deferred income taxes |
|
387 |
|
|
402 |
Other noncurrent liabilities |
|
1,503 |
|
|
1,489 |
Total noncurrent liabilities |
|
12,132 |
|
|
11,616 |
|
|
|
|
||
Shareholders’ equity |
|
|
|
||
Eaton shareholders’ equity |
|
19,117 |
|
|
19,036 |
Noncontrolling interests |
|
45 |
|
|
33 |
Total equity |
|
19,162 |
|
|
19,069 |
Total liabilities and equity |
$ |
39,236 |
|
$ |
38,432 |
See accompanying notes. |
EATON CORPORATION plc
NOTES TO THE THIRD QUARTER 2024 EARNINGS RELEASE
Amounts are in millions of dollars unless indicated otherwise (per share data assume dilution). Columns and rows may not add and the sum of components may not equal total amounts reported due to rounding.
Note 1. NON-GAAP FINANCIAL INFORMATION
This earnings release includes certain non-GAAP financial measures. These financial measures include adjusted earnings, adjusted earnings per ordinary share, and free cash flow, each of which differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of each of these financial measures to the most directly comparable GAAP measure is included in this earnings release. Management believes that these financial measures are useful to investors because they provide additional meaningful financial information that should be considered when assessing our business performance and trends, and they allow investors to more easily compare Eaton Corporation plc's (Eaton or the Company) financial performance period to period. Management uses this information in monitoring and evaluating the on-going performance of Eaton and each business segment.
The Company's fourth quarter and full year net income per ordinary share and adjusted earnings per ordinary share guidance for 2024 is as follows:
|
Three months ended December 31, 2024 |
|
Year ended December 31, 2024 |
||
Net income per share attributable to Eaton ordinary shareholders - diluted |
|
|
|
||
Excluding per share impact of acquisition and divestiture charges, after tax |
0.03 |
|
0.07 |
||
Excluding per share impact of restructuring program charges, after tax |
0.11 |
|
0.37 |
||
Excluding per share impact of intangible asset amortization expense, after tax |
0.22 |
|
0.84 |
||
Adjusted earnings per ordinary share |
|
|
|
A reconciliation of net income attributable to Eaton ordinary shareholders per share to adjusted earnings per ordinary share is as follows:
|
Year ended December 31, 2023 |
||
Net income per share attributable to Eaton ordinary shareholders - diluted |
$ |
8.02 |
|
Excluding per share impact of acquisition and divestiture charges, after tax |
|
0.10 |
|
Excluding per share impact of restructuring program charges, after tax |
|
0.11 |
|
Excluding per share impact of intangible asset amortization expense, after tax |
|
0.89 |
|
Adjusted earnings per ordinary share |
$ |
9.12 |
A reconciliation of operating cash flow to free cash flow is as follows:
|
Three months ended
|
||||||
(In millions) |
|
2024 |
|
|
|
2023 |
|
Operating cash flow |
$ |
1,308 |
|
|
$ |
1,140 |
|
Capital expenditures for property, plant and equipment |
|
(183 |
) |
|
|
(227 |
) |
Free cash flow |
$ |
1,126 |
|
|
$ |
913 |
|
Note 2. ACQUISITIONS OF BUSINESSES
Acquisition of a
On May 31, 2024, Eaton acquired a 49 percent stake in NordicEPOD AS, which designs and assembles standardized power modules for data centers in the Nordic region. Eaton accounts for this investment on the equity method of accounting and it is reported within the Electrical Global business segment.
Acquisition of Exertherm
On May 20, 2024, Eaton acquired Exertherm, a
Acquisition of a
On April 23, 2023, Eaton acquired a 49 percent stake in Jiangsu Ryan Electrical Co. Ltd., a manufacturer of power distribution and sub-transmission transformers in
Acquisition of Green Motion SA
On March 22, 2021, Eaton acquired Green Motion SA, a leading designer and manufacturer of electric vehicle charging hardware and related software based in
Note 3. ACQUISITION AND DIVESTITURE CHARGES
Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these Corporate items is as follows:
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(In millions except for per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Acquisition integration, divestiture charges and transaction costs (income) |
$ |
(4 |
) |
|
$ |
18 |
|
$ |
23 |
|
$ |
69 |
|||
Income tax benefit |
|
— |
|
|
|
4 |
|
|
7 |
|
|
14 |
|||
Total charges (income) after income taxes |
$ |
(4 |
) |
|
$ |
14 |
|
$ |
17 |
|
$ |
54 |
|||
Per ordinary share - diluted |
$ |
(0.01 |
) |
|
$ |
0.03 |
|
$ |
0.04 |
|
$ |
0.14 |
Acquisition integration, divestiture charges and transaction costs (income) in 2024 and 2023 are primarily related to acquisitions completed prior to 2023, including other charges and income to acquire and exit businesses. 2024 also included the reduction in fair value of contingent future consideration from the Green Motion SA acquisition. These charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other income - net. In Business Segment Information, the charges were included in Other expense - net.
Note 4. RESTRUCTURING CHARGES
In the second quarter of 2020, Eaton initiated a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to initially respond to declining market conditions brought on by the COVID-19 pandemic. Since the inception of the program, the Company incurred expenses of
During the first quarter of 2024, Eaton implemented a new multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. Restructuring charges incurred under this program were
A summary of restructuring program charges is as follows:
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(In millions except for per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Workforce reductions |
$ |
10 |
|
$ |
— |
|
$ |
78 |
|
$ |
17 |
||||
Plant closing and other |
|
44 |
|
|
7 |
|
|
55 |
|
|
29 |
||||
Total before income taxes |
|
54 |
|
|
7 |
|
|
132 |
|
|
46 |
||||
Income tax benefit |
|
11 |
|
|
1 |
|
|
28 |
|
|
8 |
||||
Total after income taxes |
$ |
43 |
|
$ |
5 |
|
$ |
104 |
|
$ |
37 |
||||
Per ordinary share - diluted |
$ |
0.11 |
|
$ |
0.01 |
|
$ |
0.26 |
|
$ |
0.09 |
Restructuring program charges (income) related to the following segments:
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Electrical |
$ |
— |
|
|
$ |
— |
|
$ |
9 |
|
$ |
4 |
|||
Electrical Global |
|
42 |
|
|
|
5 |
|
|
70 |
|
|
22 |
|||
Aerospace |
|
(1 |
) |
|
|
1 |
|
|
7 |
|
|
4 |
|||
Vehicle |
|
4 |
|
|
|
1 |
|
|
32 |
|
|
4 |
|||
eMobility |
|
2 |
|
|
|
— |
|
|
2 |
|
|
6 |
|||
Corporate |
|
6 |
|
|
|
— |
|
|
13 |
|
|
6 |
|||
Total charges |
$ |
54 |
|
|
$ |
7 |
|
$ |
132 |
|
$ |
46 |
These restructuring program charges were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other income – net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items.
Note 5. INTANGIBLE ASSET AMORTIZATION EXPENSE
Intangible asset amortization expense is as follows:
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(In millions except for per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Intangible asset amortization expense |
$ |
106 |
|
$ |
107 |
|
$ |
319 |
|
$ |
344 |
||||
Income tax benefit |
|
23 |
|
|
23 |
|
|
68 |
|
|
74 |
||||
Total after income taxes |
$ |
84 |
|
$ |
84 |
|
$ |
251 |
|
$ |
269 |
||||
Per ordinary share - diluted |
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.62 |
|
$ |
0.67 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030417725/en/
Eaton Corporation plc
Jennifer Tolhurst
Media Relations
+1 (440) 523-4006
jennifertolhurst@eaton.com
Yan Jin
Investor Relations
+1 (440) 523-7558
Source: Eaton Corporation plc
FAQ
What was Eaton's (ETN) earnings per share in Q3 2024?
How much did Eaton's (ETN) sales grow in Q3 2024?
What is Eaton's (ETN) full-year 2024 earnings guidance?