Eaton CEO sees strong heavy-truck market
Nov 1, 2005 12:00 PM
On the heels of healthy sales and profits, Cleveland OH-based manufacturer Eaton Corp is projecting that robust sales of heavy trucks should continue through the rest of 2005.
“Our truck segment posted sales of $601 million in the third quarter, up 24% compared with the same period in 2004, and it recorded operating profits of $119 million — an increase of 29%,” said Alexander Cutler, Eaton's chairman and chief executive officer. He added, however, that restructuring charges of $120 million wiped out that profit and then some for the quarter.
Cutler said NAFTA heavy-duty truck-related production jumped 14% versus the same period in 2004, while medium-duty production slipped 11%, European truck production climbed 4%, and Brazilian vehicle production rose 6%.
“Third quarter production of NAFTA heavy-duty trucks totaled 86,000 units, about the same as in the second quarter,” said Cutler. “We expect that for the full-year NAFTA heavy-duty production is likely to be about 325,000 units.”
Overall, Eaton posted healthy results for the third quarter despite restructuring charges. Net income rose 17% for the company as a whole to $199 million on 10% higher sales of $2.79 billion compared with the same period in 2004.
“We expect our end markets to grow about 4% in the fourth quarter, with the truck markets in particular remaining very strong,” Cutler said.
