Truck segment posts 28% earnings gain for Eaton

Oct. 22, 2010
Eaton’s truck segment posted sales of $534 million in the third quarter, up sharply when compared with 2009

Eaton’s truck segment posted sales of $534 million in the third quarter, up sharply when compared with 2009.

Truck markets in the third quarter were up 28%, with U S markets up 24% and non-U.S. markets up 31%.

Operating profits were $74 million compared to $25 million in the third quarter of 2009.

“We are pleased with our 13.9% margin in the truck segment during the third quarter.” Said Sandy Cutler, chairman. “This margin performance is particularly noteworthy given the currently depressed production levels in the NAFTA Class 8 truck market. We believe truck markets in the fourth quarter will continue to improve, although at a slower rate than in the third quarter.”

Cutler estimates the company’s truck markets in 2010 will grow 26% versus our expectation of 23% at the end of the second quarter.”

For the overall company, stronger markets and improved operating performance resulted in higher than expected third-quarter earnings for Eaton Corporation. Sales for were $3,571 billion, up 18%. The company received 25% of its earnings from developing countries.