Eaton’s 2Q Profit Declines

Vehicle parts manufacturer Eaton Corp. said Monday its second-quarter profit fell 91% and that its full-year earnings would be less than previously forecast due to slowing demand in Europe.

Net income fell to $29 million, or 17 cents a share, from $333 million, or $2.03, a year earlier, Eaton said in a statement. Sales fell 32% to $2.9 billion.

Eaton said its 2009 profit excluding some outstanding items will be $2 to $2.20 a share, down from its April forecast of $2.50 to $3 per share.

Chief Executive Officer Sandy Cutler cut executive salaries and eight weeks of his own base pay and furloughed employees to adjust for falling demand, Bloomberg reported. The company also has shut plants and trimmed its workforce by 15% to lower costs, Bloomberg said.