Diversified industrial manufacturer Eaton Corp. reported net income per share of $1.87 for the third quarter of 2008, an increase of 9% over net income per share of $1.71 in the third quarter of 2007. Sales in the quarter were $4.1 billion, 25% above the same period in 2007. Net income was $315 million compared to $258 million in 2007, an increase of 22%.
Eatons diversification strategy is working. Our improved geographic and business balance allowed us to post strong earnings despite the turmoil in world financial markets, said Alexander M. Cutler, CEO. Our margin performance in the third quarter was also strong, with our largest segment -- Electrical -- realizing a record operating margin before acquisition integration charges of 14.1%.
The severe issues in world financial markets have started to impact markets for our products. While it is not possible to forecast with precision the prospective impact upon our end markets, prudence suggests anticipating a significant slowdown, he added. While our year-over-year end market growth in the third quarter was 2%, we anticipate fourth quarter growth in our end markets to be flat with the prior year."
Copyright Agence France-Presse, 2008