Eaton Corp. (Cleveland, OH) announced operating earnings per share of $0.98 for the fourth quarter of 2002, 51 percent above results one year earlier of $0.65 per share. Sales in the quarter were $1.78 billion, five percent above last year. Net income before unusual items was $69 million compared to $47 million in 2001.
After all unusual items in both periods, net income in the fourth quarter of 2002 was more than double that in 2001, with 2002 net income of $67 million and earnings per share of $0.94, compared to $30 million and $0.42 per share in 2001. For the full year 2002, sales were $7.21 billion, one percent lower than in 2001. Net income of $315 million, before unusual items, increased 35 percent over last year, and operating earnings per share of $4.40 rose 33 percent above 2001. After all unusual items in both periods, net income in 2002 increased to $281 million, 66 percent more than in 2001, and earnings per share of $3.92 rose 64 percent compared to last year.
In comparison to 2001, fourth-quarter and full-year 2002 results were favorably impacted by $0.22 and $0.88 per share, respectively, due to the adoption of Statement of Financial Accounting Standards No. 142, which discontinued the amortization of goodwill and certain intangible assets, and were unfavorably impacted by $0.10 and $0.52 per share, respectively, due to additional pension expense. Restructuring expenses for the fourth quarter was $4 million, and for the full year totaled $62 million.
