Eaton’s 4Q Profit Improves
Vehicle parts manufacturer Eaton Corp. said Monday its fourth-quarter profit rose 29% from a year ago and that it expects its markets to grow 5% this year.
Net earnings rose to $211 million, or $1.25 per share, from $163 million, or 98 cents, a year ago, the Cleveland-based company said in a statement.
Sales fell 10%, consisting of a 15% decline in core sales offset by 5% growth due to foreign exchange.
Truck segment sales rose 1% to $443 million. Truck markets in the fourth quarter declined 8%, with U.S. markets down 22% and non-U.S. markets up 10%. Truck operating profits were $51 million, up 24%.
“We were pleased with the 11.5% Truck segment operating margin in the fourth quarter,” said Chairman and Chief Executive Officer Alexander Cutler.
“Our business is operating at good margins despite low activity levels,” he said in a statement. “As evidence of just how low activity levels have been, the truck market during 2009 declined by 27%, with the [North American] Class 8 market at levels not seen since 1991.
Eaton’s full-year profit fell to $383 million, or $2.27 per share, from $1.06 billion, or $6.52 per share. Sales fell 23% to $11.9 billion.
Eaton estimates its markets to grow 5% this year and “and we expect to outgrow our end markets in 2010 by approximately $300 million,” Cutler said.
