Eaton sees orders decline, announces restructuring
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Eaton Corp. sales were down in the second quarter Business name: Eaton Corp.
Business summary: Describing itself as a power management company, Eaton is a diversified global manufacturer. It makes controls and other management systems for hydraulic, electrical and mechanical systems and supplies parts to electrical manufacturers, commercial buildings, truck and automotive manufacturers and the aerospace industry.
Location: Beachwood, but officially headquartered in Dublin, Ireland.
Share price now: $61.85 NYSE, at 4 p.m
Previous close: $61.49
Revenue: 3 months to July 2015: $5.4 billion
Net income: $535 million
Per share: $1.14
Revenue same period year ago: $5.8 billion
Net income: $171 million
Per share: 36 cents
Change: Revenue decreased by 7 percent, net income up by more than 200 percent
What you need to know: Eaton's booming global business is slowing. The company is beginning a corporate-wide restructuring after seeing order declines during the second quarter. The belt-tightening "involves elimination of positions, closing of a limited number of facilities, consolidation of internal organizations, and frankly, elimination on a permanent basis of some activities within the company, CEO Sandy Cutler told analysts. "This is a program aimed at reducing structural costs across the company in anticipation of markets not showing substantially stronger growth in the second half, nor next year."
