Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Eaton (ETN) is definitely not overvalued! -- Ignore unavailable to you. Want to Upgrade?

To: go4it who wrote (224)	10/19/1999 10:05:00 AM
From: Walter Morton	Respond to of 338

Summary of the numbers: CLEVELAND, Oct. 19 (Reuters) - EATON CORP Statements of Consolidated Income Three months ended September 30 (Millions except for per share data) 1999 1998 Net sales $2,227 $1,620 Costs & expenses Cost of products sold 1,612 1,192 Selling & administrative 349 247 Research & development 82 85 2,043 1,524 Income from operations 184 96 Other income (expense) Interest expense - net (47) (23) Gain on sales of businesses 133 Other - net 16 6 102 (17) Income before income taxes 286 79 Income taxes 102 21 Net income 184 58 Net income per Common Share Assuming dilution 2.46 .80 Basic 2.52 .82 Average number of Common Shares outstanding Assuming dilution 74.9 72.3 Basic 73.2 71.1 Cash dividends paid per Common Share .44 .44 See accompanying notes. Eaton Corporation Statements of Consolidated Income Nine months ended September 30 (Millions except for per share data) 1999 1998 Net sales $6,188 $5,019 Costs & expenses Cost of products sold 4,427 3,599 Selling & administrative 978 774 Research & development 230 249 5,635 4,622 Income from operations 553 397 Other income (expense) Interest expense - net (112) (67) Gain on sales of businesses 133 43 Other - net 21 22 42 (2) Income before income taxes 595 395 Income taxes 202 118 Net income 393 277 Net income per Common Share Assuming dilution 5.35 3.79 Basic 5.44 3.87 Average number of Common Shares outstanding Assuming dilution 73.4 73.0 Basic 72.2 71.5 Cash dividends paid per Common Share 1.32 1.32 See accompanying notes. Eaton Corporation Notes to the Third Quarter 1999 Earnings Release (All references to net income per Common Share assume dilution.) Acquisition of Aeroquip-Vickers, Inc. On April 9, 1999, the Company completed the acquisition of Aeroquip-Vickers, Inc. (A-V) for about $1.6 billion in cash. A-V, which had 1998 sales of $2.1 billion, was comprised of two principal subsidiaries: Aeroquip Corporation and Vickers, Inc. The acquisition has been accounted for by the purchase method of accounting, and accordingly, the statements of consolidated income include the effects of the acquisition of A-V beginning April 9, 1999. 1999 Q3 includes restructuring charges of $8 million ($5 million aftertax, or $.07 per Common Share). 1999 nine month period net income was reduced by restructuring charges of $11 million ($7 million aftertax, or $.10 per Common Share). These charges reduced operating profit of the Fluid Power and Other Components segment and are associated with the integration of A-V into the Company. 1998 Q3 was reduced by restructuring charges of $42 million ($27 million aftertax, or $.38 per Common Share) which reduced operating profit of the Semiconductor Equipment segment. 1998 Income in the first quarter of 1998 was reduced by unusual pretax charges of $43 million ($28 million aftertax, or $.38 per Common Share). The Company recorded $33 million of restructuring charges which reduced operating profit of the Automotive Components segment by $8 million, the Industrial and Commercial Controls segment by $15 million, and the Truck Components segment by $10 million. The Company also recorded a $10 million contribution to its charitable trust which is included in other expense. Restructuring charges recorded in 1999 and 1998 relate to workforce reductions, asset write-downs and other restructuring actions. Gain on Sales of Businesses On August 31, 1999, the Company completed the sale of the Engineered Fasteners Division for $173 million in cash. The sale of this business resulted in a pretax gain of $133 million ($81 million aftertax, or $1.08 per Common Share) which was recorded in the third quarter of 1999. On October 1, 1999, the Company completed the sale of the Fluid Power Division for $310 million in cash. The gain on the sale of this business will be reported in the fourth quarter of 1999. On January 2, 1998, the Company completed the sale of the Axle and Brake business. The sale of this business, and an adjustment related to a business sold in a prior period, resulted in a pretax gain of $43 million ($28 million aftertax, or $.38 per Common Share), which was recorded in the first quarter of 1998. On April 1, 1998, the Company completed the sale of its automotive leaf spring business. The operating results of these businesses are included in divested operations. Sale of Common Shares In July 1999, in order to partially refinance the cost of the acquisition of A-V, the Company sold 1.625 million Common Shares for net proceeds of $147 million. biz.yahoo.com