CLEVELAND (AP) ? Diversified manufacturer Eaton Corp. said Wednesday its third-quarter net income fell 5 percent, as slower economic growth reduced demand for its products.
The company said growth this year will be slower than it had anticipated, blaming Europe, which has been struck by a financial crisis, weaker growth in China and moderating industrial activity in the U.S. due to uncertainty over moves the government might make on taxes and spending. Eaton sells parts and technology used in the aerospace, auto, power and other industries.
Still, shares rose $2.68, or 5.9 percent, to $47.80 in morning trading.
The Cleveland-based company earned $345 million, or $1.02 per share, in the three months through Sept. 30, down from $365 million, or $1.07 per share, in the same quarter last year. Excluding one-time charges related to acquisitions, the company said it posted an adjusted profit of $1.07 per share for the recent quarter.
Revenue fell 4 percent to $3.95 billion from $4.12 billion.
The results fell short of Wall Street predictions. Analysts, on average, expected a profit of $1.09 per share on $4.21 billion in revenue, according to a FactSet poll.
For the current quarter, Eaton said revenue will be about the same as in the third quarter, excluding any effects from its pending $11.5 billion acquisition of Cooper Industries. That would put the company's sales below average analysts' estimates of $4.21 billion.
Eaton expects the Cooper acquisition to close by the end of the year.
Source: http://news.yahoo.com/eaton-3q-profit-falls-5-pct-lower-demand-135203003--finance.html
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