(Updates with closing share price in second paragraph.)
Jan. 26 (Bloomberg) -- Eaton Corp., a maker of hydraulic products and circuit breakers, declined after reporting fourth- quarter earnings that trailed analysts’ estimates, hurt by weakened demand in its electrical unit.
Eaton fell 1.2 percent to $48.93 at 4 p.m. in New York. The shares have dropped 6.5 percent over the last 12 months.
Revenue in December was lower than expected by about $200 million, Chief Executive Officer Alexander Cutler said today in a statement. About 75 percent of the revenue decline came from the electrical business, where demand in Europe slowed because of the sovereign debt crisis, and access to credit caused a slowdown in China.
Fourth quarter operating earnings advanced 26 percent to $366 million, or $1.08 a share, from $291 million, or 85 cents, a year ago, the Cleveland, Ohio-based company said. Analysts projected $1.11 a share, the average of estimates compiled by Bloomberg.
Sales rose 10 percent to $4.03 billion. Net income rose 29 percent to $362 million, or $1.07 per share.
“Many of the factors behind the shortfall in fourth quarter revenues are temporary and, as a result, should not have a significant impact on 2012 revenues,” Cutler said in the statement.
The company forecast full-year operating earnings of $4.15 to $4.55, excluding 5 cents to integrate acquisitions, according to the statement. Analysts projected $4.45, the average of estimates.
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