Eaton Corporation plc reported strong financial performance for the third quarter and the first nine months of 2024, with net sales reaching $6,345 million for the three months ended September 30, 2024, an 8% increase from $5,880 million in the same period of 2023. For the nine months, net sales totaled $18,638 million, up from $17,229 million, also reflecting an 8% increase. The growth was driven by robust performance across various segments, particularly Electrical Americas, which saw a 14% increase in sales for Q3 2024, totaling $2,963 million.
Profitability metrics also improved significantly. Income before income taxes for Q3 2024 was $1,204 million, a 12% increase from $1,079 million in Q3 2023. Net income for the same quarter rose to $1,011 million, compared to $892 million in the prior year, marking a 13% increase. For the nine-month period, net income reached $2,827 million, up 24% from $2,277 million in 2023. Diluted earnings per share for Q3 2024 increased to $2.53 from $2.22, while for the nine months, it rose to $7.05 from $5.67.
Eaton's gross profit margin improved to 38.6% in Q3 2024, up from 37.3% in Q3 2023, attributed to higher sales and operational efficiencies despite inflationary pressures. The effective income tax rate for Q3 2024 decreased to 16.1% from 17.3% in the previous year.
Strategically, Eaton has been active in acquisitions, including a 49% stake in Jiangsu Ryan Electrical Co. Ltd. in April 2023, Exertherm in May 2024, and NordicEPOD AS in May 2024. These acquisitions are aimed at enhancing Eaton's capabilities in power distribution and thermal monitoring solutions.
The company also initiated a new multi-year restructuring program in Q1 2024, expected to incur total charges of $375 million, with $132 million in restructuring charges recorded in the first nine months of 2024, compared to $46 million in the same period of 2023. This program aims to improve operational efficiencies and streamline operations.
Eaton's total current assets increased to $12,152 million as of September 30, 2024, from $11,675 million at the end of 2023. The company reported total assets of $39,236 million, up from $38,432 million. Cash and short-term investments decreased slightly, with cash at $473 million and short-term investments at $1,521 million.
Overall, Eaton's financial results reflect a solid performance driven by strategic growth initiatives and operational improvements, positioning the company favorably in its market segments.
About Eaton Corp plc
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