Eaton Corporation (
ETN)
Q1 2010 Earnings Call Transcript
April 20, 2010 10:00 a.m. ET
Executives
William Hartman - Investor Relations
Sandy Cutler – Executive Chairman, President and Chief Executive Officer
Richard H. Fearon - Vice Chairman and Chief Financial and Planning Officer
Analysts
Steve Roakman - Analyst
David Raso - ISI Group
Eli Lustgarten - Longbow Research
Ann Duignan - J.P. Morgan
Timothy Thein - Citigroup
Jamie Cook - Credit Suisse
Robert McCarthy - Robert W. Baird & Co., Inc.
Jeffrey Hammond - KeyBanc Capital Markets
Andrew Casey - Wells Fargo Securities, Llc
Mark Koznarek - Cleevland Research Company
Robert McCarthy - Robert W. Baird & Co., Inc.
Presentation
Operator
Ladies and gentlemen, thank you for standing by. And welcome to the Eaton Corporation first quarter earnings conference call. At this time, all participant lines are in a listen-only mode and later there will be an opportunity for your questions. If you would like to ask a question you may be press star then one on your touchtone phone. To withdraw your quest from this queue you may be press the pound key.
And as a reminder, today’s conference call is being recorded. I would now like to turn the conference over to Mr. Bill Hartman. Please go ahead, sir.
William Hartman
Thank you, very much. Good morning, everyone. And welcome to Eaton’s First Quarter earnings conference call for the year 2010.
Joining me this morning are Sandy Cutler, Chairman and CEO; and Richard H. Fearon, Vice Chairman and CFO. As been our practice in the past, we will start today’s call with some comments from Sandy, followed by a question and answer session.
As a reminder, the information that we’re providing in our conference call today will include some forward-looking statements concerning the second quarter of 2010, the full year of 2010 on net income and operating earnings per share and second quarter and full year 2010 revenues. Comments on our worldwide markets, our growth in relation to these end markets and our growth from acquisitions.
These comments all need to be views with caution and are subject to the various risks and uncertainties, many of which are outside the Company’s control. Factors that could cause actual results to differ materially from those in these forward-looking statements are set forward in today’s press release and related Form 8-K filing.
As a reminder, we’ve included a presentation on first quarter results which can be accessed on the Investor Relations page. Additional financial information is available in today’s press release, which is located on an Eaton’s home page at www.eaton.com.
And with those preliminary comments, it’s my pleasure to turn the meeting over to Sandy Cutler. Sandy?
Sandy Cutler
Thanks, Bill. Good morning and thanks everyone for joining us. I’m going to work off of the presentation that I hope you all have been able to access at this point and Bill, covered the forward-looking statement. So I’m going to move right to page three in your packet, highlights of the first quarter. We had a very strong first quarter. We’re very pleased with it and certainly a very different quarter than we experienced a year ago at this time.
Operating income per share of $0.95, excluding the non-cash Medicare Part D charge of $0.14 it would have been $1.09. Net income per share of $0.91 and again excluding that non-cash charge it would have been $1.05.
Sales were $3.1 billion, up 10%, roughly flat with the fourth quarter, which you’ll remember was $3.131 billion. Our end markets were up 4% for the quarter, some 24% of our sales coming from the developing countries, where we continue to see the recovery outpacing what’s going on in the developed nations.
