Q3 2024 Eaton Corporation PLC Earnings Call Transcript
Key Points
- Eaton Corp PLC (ETN) achieved an all-time record adjusted EPS of $2.84, up 15% from the previous year.
- The company delivered record segment margins of 24.3%, an increase of 70 basis points from last year.
- Electrical orders were up 12% on a rolling 12-month basis, with electrical Americas orders up 16% and aerospace orders increased by 6%.
- Eaton Corp PLC (ETN) has a strong backlog, up 26% for electrical Americas and 14% for aerospace, with strong book-to-bill ratios.
- The company is making significant investments in manufacturing capacity, with incremental capacity investments now at $1.5 billion, up $500 million from previous estimates.
- Revenue was negatively impacted by about $50 million due to Hurricane Helene and labor strikes in the aerospace industry.
- The company expects its revenue growth to be on the low end of its 8% to 9% guidance range due to ongoing aerospace industry labor strikes and a slowdown in vehicle markets.
- Eaton Corp PLC (ETN) lowered its growth guidance for the aerospace business by 150 basis points due to the labor strike.
- The vehicle segment experienced a 7% decline in total revenue, including a 6% organic decline, primarily driven by weakness in the light vehicle market.
- The e-mobility business reported an operating loss of $7 million, as the company continues to incur launch costs related to new programs.
Ladies and gentlemen, thank you for standing by, and welcome to the Eaton third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.
I would now like to turn the conference over to your host, Yan Jin. Please go ahead.
Good morning. Thank you all for joining us for Eaton's third-quarter 2024 earnings call. With me today are Craig Arnold, our Chairman and CEO; and Olivier Leonetti, Executive Vice President and Chief Financial Officer. Our agenda today includes the opening remarks by Craig, then he will turn it over to Olivier, who will highlight the company's performance in the third quarter. As we have done in our past calls, we'll be taking questions (inaudible) Craig's closing commentary.
The press release and the presentation we'll go through today have been posted on our website. This presentation, including adjusted earnings per share, adjusted free cash flow and other non-GAAP measures. The recount sale in the appendix. A webcast
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