Cooper Industries Reports Third Quarter Revenues Up 15 Percent; Earnings from Continuing Operations of $1.08 Per Share, Including $.11 Per Share Gain From Discrete Tax Items

Business Wire, Oct 23, 2008

Outlook

"I am proud that our Cooper Team continues to deliver in these uncertain times. We have a diversified portfolio and have demonstrated the ability to execute upon our strategic initiatives," said Hachigian.

"The freezing of credit markets on top of the already slowing U.S. and European economies will impact demand for our products and services over the next six months and possibly longer. We have a strong management team in place, a strong balance sheet and outstanding cash flow that will enable us to weather the anticipated difficult economy ahead. In the fourth quarter we anticipate our customers reducing inventory levels and our manufacturing facilities to likewise operate at a lower level of production. While currently it is difficult to forecast the length and depth of a downturn, we are proactively implementing contingency plans that will reduce our cost structure, and expect to take a charge of $20 million to $22 million in severance expenses in the fourth quarter to reduce our workforce by over 1,000 employees and will also be taking charges for product line moves and other restructuring," commented Hachigian.

"For 2008, we are now forecasting earnings per share from continuing operations to increase 14 to 17 percent to $3.58 to $3.67, exclusive of a fourth quarter charge and the $.11 tax benefits in 2008 and $.59 for unusual items in the prior year, with revenue growth in the range of 12 to 14 percent. For the fourth quarter of 2008, exclusive of a fourth quarter charge, we expect earnings per share from continuing operations of $.83 to $.92 with revenue growth in the range of 7 to 9 percent," said Hachigian.

About Cooper Industries

Cooper Industries, Ltd. (NYSE:CBE) is a global manufacturer with 2007 revenues of $5.9 billion, approximately 87% of which are from electrical products. Founded in 1833, Cooper's sustained level of success is attributable to a constant focus on innovation, evolving business practices while maintaining the highest ethical standards, and meeting customer needs. The Company has eight operating divisions with leading market share positions and world-class products and brands including: Bussmann electrical and electronic fuses; Crouse-Hinds and CEAG explosion-proof electrical equipment; Halo and Metalux lighting fixtures; and Kyle and McGraw-Edison power systems products. With this broad range of products, Cooper is uniquely positioned for several long-term growth trends including the global infrastructure build-out, the need to improve the reliability and productivity of the electric grid, the demand for higher energy-efficient products and the need for improved electrical safety. In 2007, sixty percent of total sales were to customers in the industrial and utility end-markets and 34% of total sales were to customers outside the United States. Cooper, which has more than 31,500 employees and manufacturing facilities in 23 countries as of 2007, is incorporated in Bermuda with administrative headquarters in Houston, TX. For more information, visit the website at www.cooperindustries.com.