Eaton (ETN) Reports Q1 Loss; Guides Lower

April 20, 2009 7:22 AM EDT

Eaton Corporation (NYSE: ETN) reports Q1 loss of $0.22, ex-items, versus the consensus of a $0.25 loss. Revenues came in at $2.8 billion, versus the consensus of $3.06 billion.

Eaton now anticipates end markets for all of 2009 will decline between 15 and 16 percent as the recovery in the U.S. and Western European economies will be pushed out one quarter, with the recovery now more likely to begin in the first quarter of 2010.

On its outlook the company said, "Given the uncertain end market demand, it is very difficult to provide guidance for the second quarter. Assuming our sales in the second quarter total between $3.0 billion and $3.1 billion, coupled with the additional charges we expect in the quarter, we anticipate net income per share for the second quarter of 2009 to be approximately $0.15 and operating earnings per share, which exclude charges to integrate our recent acquisitions, to be approximately $0.25. As a result of our lower market forecast for 2009, we are lowering our full-year guidance to net income per share of between $2.10 and $2.60 and operating earnings per share of between $2.50 and $3.00. Our second half 2009 and full year 2010 results will be strengthened by the savings from the resource adjustment actions taken during the first half of 2009." The Q2 Wall Street consensus is $1.06 per share for earnings and sales of $3.5 billion. The full year EPS consensus is $3.44 and sales of $13.42 billion.

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