Eaton to Cut 600 Jobs

Eaton Corp. (ETN), the largest U.S. maker of truck transmissions, said it is cutting 600 jobs at its hydraulics operations over the next three months to cut costs.

The Cleveland-based company also said that first-quarter earnings that were 30% lower than the same period last year.

For the quarter ended March 31, the company earned $1.05 per share, which was at the higher end of analysts’ estimates.

Chairman Alexander Cutler said that although he doesn’t expect market conditions to improve much in the coming months, he expects that Eaton will still meet its earnings estimates for the year.

He also said hydraulics orders were down about 18% during the quarter, forcing the company to make the job cuts.

Eaton took a $38 million charge during the quarter related to the previously announced restructuring of its truck components business.

It makes a variety of heavy truck-related products such as fluid connectors, electrical power distribution and control equipment and engine components. It employs about 55,000 people in 29 countries.

(Click here for the full press release.)

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