Cooper Industries 2Q Profit Down 45% On Sales Slump

Cooper Industries Ltd.'s (CBE) second-quarter profit plunged 45% amid still-sliding sales at the electrical products and tool manufacturer.

The company reported earnings of $89.3 million, or 53 cents a share, down from $161.9 million, or 92 cents, a year earlier. Both periods included 5 cents in charges. Revenue fell 26% to $1.27 billion.

Cooper's April forecast was earnings of 50 cents to 60 cents a share on a revenue drop of 21% to 26%, below Wall Street's expectations at the time.

Gross margin fell to 30.3% from 33%.

Revenue in the company's key electrical products segment, which includes circuit-protection equipment, lighting fixtures and wiring devices, fell 25% as profit skidded 41%.

Chairman and Chief Executive Kirk S. Hachigian said, "We did not experience the normal seasonal increase in revenues," but "intense cost management" helped offset that.

Cooper has responded to the demand woes by cutting nearly 3,000 jobs, or about 10% of its work force, since late last year.

Looking ahead, the company lowered the top end of its 2009 earnings target and projected third-quarter non-GAAP earnings of 60 cents to 70 cents a share. Analysts surveyed by Thomson Reuters were expecting 66 cents.

Cooper shares closed Wednesday at $32.94 and were inactive premarket.

-By Mike Barris, Dow Jones Newswires; 212-416-2330; [e-mail];