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Eaton Reports Fourth Quarter Net Income Of $0.46 Per Share

Business Segment Results

Fourth quarter sales for the Electrical Americas segment were $1.2 billion, up 3 percent from the fourth quarter of 2011. Operating profits in the fourth quarter were $190 million. Excluding acquisition integration charges of $3 million during the quarter, operating profits totaled $193 million, up 11 percent from the fourth quarter of 2011.

“End markets for our Electrical Americas segment grew 1 percent during the fourth quarter, and our orders grew 11 percent,” said Cutler. “Our operating margin was 16.7 percent.

“Our U.S. nonresidential electrical and residential electrical markets showed good growth during the quarter, while the power quality market remained soft,” said Cutler.

Fourth quarter sales for the Electrical Rest of World segment were $711 million, up 2 percent over the fourth quarter of 2011. This is the first quarter of revenue growth in over a year. Operating profits were $68 million. Excluding acquisition integration charges of $3 million during the quarter, operating profits totaled $71 million, up 1 percent over the fourth quarter of 2011.

“During the fourth quarter, our Rest of World electrical markets declined 5 percent, as both Europe and APAC remained soft,” said Cutler. “Despite the market decline, we were able to grow our revenues and post an operating margin of 10.0 percent in the quarter. The restructuring actions we took in the quarter reduced the margin by 0.4 percent. Orders in the fourth quarter increased 2 percent.”

Fourth quarter sales for the Cooper segment were $470 million, reflecting Eaton’s ownership of Cooper for the month of December. Operating profits were $66 million. Excluding acquisition integration charges of $2 million during the quarter, operating profits were $68 million.

“In 2013, we are going to be resegmenting our electrical business,” said Cutler. “We will be reporting two segments, the first named Electrical Products and the second named Electrical Systems and Services. For 2013, we expect our overall electrical markets to grow 3 to 4 percent.”

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