DOW JONES NEWSWIRES
Cooper Industries Ltd.'s (CBE) fourth-quarter net income dropped
38% on restructuring charges as the electrical products and tool
manufacturer expanded planned job cuts and projected 2009 results
below analysts expectations.
For 2009, the company sees earnings from continuing operations
of $2.45 to $2.80 a share on a 10% to 15% decline in revenue.
Analysts surveyed by Thomson Reuters projected earnings of $2.87 a
share on a 7% revenue drop to $6.1 billion. Cooper also projected
first-quarter earnings of 45 cents to 65 cents on a revenue decline
of 10% to 15%; analysts expected 68 cents and a 6% sales drop to
$1.45 billion.
The company now expects to shed 2,200 jobs, not the 1,000
announced during the fourth quarter. Cooper has some 31,000
employees.
Meanwhile, Cooper reported net income of $111.1 million, or 65
cents a share, down from $179.3 million, or 98 cents, a year
earlier.
Excluding restructuring charges and write-downs in the latest
quarter and gains in the prior-year period, earnings rose to 84
cents from 83 cents. Cooper last month cut its earnings guidance
to70 cents to 80 cents a share.
Revenue fell 1% to $1.52 billion, in line with analysts'
estimate.
Revenue in the company's electrical products segment, its
largest business, climbed 3%, helped by acquisitions, as profits
slid 9% amid the restructuring.
But Cooper should benefit from long-term trends, such as the
need for utilities to provide better reliability and productivity
through energy-demand management, the increasing need for
electrical products to become more energy efficient and an expected
increase in infrastructure projects.
Cooper's shares, which are down about 45% in the past five
months, closed Monday at $27.14. Shares were not active
premarket.
-By Katherine Wegert and Kathy Shwiff, Dow Jones Newswires;
201-938-5975; Kathy.Shwiff@dowjones.com
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