Eaton Corporation’s truck segment posted sales of $620 million in the fourth quarter, up 13 percent compared to 2005.
Operating profits in the quarter were $76 million, down 30 percent compared to the fourth quarter of 2005. Adjusting for the $27 million of net Excel 07 costs incurred in the fourth quarter, operating profits declined by 5 percent. Also contributing to the margin decline in the quarter was an adjustment to Brazilian inventories. The Excel 07 net costs and Brazilian inventory adjustment comprised the entire decline in year-to-year Truck segment operating margins.
NAFTA heavy-duty production was up 16 percent compared to 2005, NAFTA medium-duty production was up 20 percent, European truck production was flat, and Brazilian vehicle production was up 1 percent.
“Production of NAFTA heavy-duty trucks in 2006 totaled 378,000 units,” said Cutler. “We are maintaining our forecast that production in 2007 will be between 205,000 and 210,000 units.
“Our hybrid truck program made further progress during the quarter, with the receipt of the 2006 Environmental Innovation Award from the Ohio Environmental Council,” said Cutler.