CLEVELAND, Ohio -- Global power management company Eaton Corp. made $602 million in the three months ending in September -- an 18 percent increase over the $510 million in net profits reported during the third quarter of 2013.
Net earnings per share were $1.26 versus $1.07 a year ago.
Sales during the period were $5.73 billion, up a little more than 2 percent and lower than expected from $5.61 billion for the same period a year ago.
Those solid gains, partly due to Eaton's nearly continuous acquisition of smaller companies and its commitment to efficient management, are the basis of Eaton's claim Wednesday that it had set earnings records during the quarter.
But the company is not emphasizing net earnings. Instead it announced "operating earnings," which are profits before expenses and taxes.
"Operating earnings for the third quarter of 2014, excluding pre-tax charges of $19 million to integrate recent acquisitions, were $616 million, an increase of 15 percent over 2013," Eaton announced in a written statement.
"Operating earnings per share," the company said, "which exclude charges of $0.03 per share to integrate recent acquisitions, were a record $1.29 for the third quarter of 2014, up 15 percent over the third quarter of 2013."
Alexander M. Cutler, Eaton chairman and chief executive officer, characterized the quarter as "very strong" and earnings "near the high end of our guidance."
"We had a very strong quarter, setting numerous performance records at both the segment and corporate level," he said in a written statement announcing the results. "Third quarter results came in near the high end of our guidance for the quarter. Our segment operating margins, which exclude acquisition integration charges, were a record 16 percent as productivity gains and effective cost control more than offset the impact of modestly lower-than-expected revenues.
For the first nine months of the year, Eaton reported net profits, or income, of $1.21 billion, or $2.53 per share, on sales of $16.9 billion.
That compares to net income of $1.38 billion, or $2.90 per share, on net sales of $16.5 billion during the first nine months of 2013.
Eaton expects strong growth and solid earnings for the year, even after what it is characterizing as one-time expenses associated with its acquisitions of smaller companies.
Eaton's shares, traded on the New York Stock Exchange, rose by more than 3 percent, or $2.17, to $66.95 within minutes after trading began Wednesday.
The company had a 10 a.m. conference call with financial analysts. The public can listen to a recording on Eaton's website