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Mar 31, 2020

Eaton Q1 2020 Earnings Report

Eaton's first quarter earnings were impacted by the COVID-19 pandemic, resulting in a decrease in sales and adjusted earnings per share.

Key Takeaways

Eaton Corporation reported earnings per share of $1.07 for the first quarter of 2020, with adjusted earnings per share at $1.09, which included a $0.14 reduction due to the impact of COVID-19. Sales were $4.8 billion, a 10% decrease from the previous year, with organic sales down 7%. The company completed the sale of its Lighting business for $1.4 billion and expects to finalize the Hydraulics business sale for $3.3 billion by the end of 2020. Full-year free cash flow is projected to be between $2.3 billion and $2.7 billion.

Earnings per share were $1.07, and adjusted earnings per share were $1.09, which was reduced by $0.14 due to COVID-19 impact.

Sales reached $4.8 billion, a 10% decrease year-over-year, with organic sales down 7% due to COVID-19.

The Lighting business was sold for $1.4 billion, and the Hydraulics business sale is expected to close by the end of 2020 for $3.3 billion.

Full-year free cash flow is expected to range between $2.3 billion and $2.7 billion.

Total Revenue
$4.79B
Previous year: $5.31B
-9.7%
EPS
$1.09
Previous year: $1.26
-13.5%
Gross Profit
$1.49B
Previous year: $1.73B
-14.1%
Cash and Equivalents
$239M
Previous year: $303M
-21.1%
Free Cash Flow
$2.5B
Previous year: $402M
+521.9%
Total Assets
$30.8B
Previous year: $31.6B
-2.5%

Eaton

Eaton

Eaton Revenue by Segment

Forward Guidance

Eaton withdrew its full year 2020 adjusted earnings per share guidance due to the reduction in global growth and economic uncertainty. They expect full year free cash flow for 2020 to be between $2.3 billion and $2.7 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income