Eaton(ETN) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter earnings per share were $2.53, up 14$2.84, up 15%[1] - Sales for the quarter reached $6.3 billion, an 8$1.3 billion and free cash flow was $1.1 billion, both quarterly records, up 15$9.47 and $9.53, representing an 18$6,345 million, a 7.9% increase from $5,880 million in the same period last year[20] - Net income attributable to Eaton ordinary shareholders for the three months ended September 30, 2024, was$1,009 million, up 13.3% from $891 million in the prior year[20] - Free cash flow for the three months ended September 30, 2024, was$1,126 million, compared to $913 million in the same period last year[28] - Adjusted earnings per ordinary share for the year ending December 31, 2024, are projected to be between$10.75 and $10.81[26] Segment Performance - Electrical Americas segment sales were a record$3.0 billion, up 14% from Q3 2023, with operating profits of $892 million, up 24$946 million, up 9% from Q3 2023, with operating profits of $230 million, up 10$2,963 million, a 14.2% increase compared to $2,594 million in the same quarter last year[20] - The Aerospace segment achieved an operating profit of$230 million, reflecting a 10.1% increase from $209 million in the same period last year[20] - The Electrical Global segment reported net sales of$1,573 million, a 4.6% increase from $1,503 million in the same quarter last year[20] - The Vehicle segment reported sales of$696 million, down 7% from Q3 2023, but operating margins improved to a record 19.4%, up 200 basis points[10] - The eMobility segment recorded sales of $167 million, up 2$7 million due to launch costs[11] Orders and Backlog - The twelve-month rolling average of orders in the third quarter was up 16% organically, with backlog growth of 26% over September 2023[6] - For Q4 2024, the company anticipates organic growth of 6-7% and adjusted earnings per share between $2.78 and$2.84[5] Restructuring and Charges - Eaton incurred total restructuring charges of $382 million since the inception of its multi-year restructuring program, with expected mature year benefits of$265 million by the end of 2024[33] - In Q3 2024, Eaton reported restructuring charges of $54 million, with total charges for the first nine months of 2024 amounting to$132 million[34] - The new multi-year restructuring program is expected to incur additional expenses of $243 million, resulting in total estimated charges of$375 million for the entire program, with anticipated mature year benefits of $325 million[33] - The company recognized a total of$199 million in expenses for workforce reductions and $184 million for plant closing and other costs since the start of the restructuring program[33] - The restructuring program is expected to be completed by 2026, aligning the company's functions to support anticipated growth[33] - Total charges related to workforce reductions in Q3 2024 were$10 million, with total charges for the first nine months of 2024 amounting to $78 million[34] - The company reported a diluted per ordinary share charge of$0.11 for restructuring in Q3 2024, compared to $0.01 in Q3 2023[34] Assets and Liabilities - Eaton's total assets increased to$39,236 million as of September 30, 2024, up from $38,432 million at the end of December 2023[22] - The company’s long-term debt increased to$8,678 million as of September 30, 2024, compared to $8,244 million at the end of December 2023[22] Acquisitions - The company acquired a 49$14 million in Q3 2024, compared to $54 million in Q3 2023[32]