UPDATE 1-Eaton gives downbeat outlook as profit misses forecasts
Aug 2 (Reuters) - Diversified manufacturer Eaton Corp on Friday reported a lower-than-expected quarterly profit and cut the top end of its full-year earnings outlook, citing lower market growth.
The maker of electrical and hydraulic systems said second-quarter net income rose to $494 million, or $1.04 per share, from $382 million, or $1.12 per share, a year earlier, when it had far fewer shares outstanding.
Excluding charges to integrate recent acquisitions, earnings of $1.09 per share fell 2 cents below the analysts' average estimate, according to Thomson Reuters I/B/E/S.
Revenue jumped 37.7 percent to $5.60 billion, driven by the company's 2012 acquisition of Cooper Industries. Analysts were looking for $5.77 billion.
Eaton forecast 2013 earnings, excluding special items, at $4.05 to $4.25 per share, reducing the high end from $4.45. The midpoint of the new outlook represents an increase of 5 percent over 2012.
"With global economic growth coming in lower than our earlier expectations, we now believe our markets will grow just 1 percent in 2013," Chief Executive Officer Sandy Cutler said in a statement. He said the company had begun 2013 expecting about 2 percent to 3 percent growth in its markets.