Eaton posts strong 2Q profits

Jul 18, 2002 12:00 PM

Truck component supplier Eaton posted strong second-quarter profits of $88 million on sales of $1.88 billion, compared to profits of $49 million in the same period last year. Revenues in the second quarter were up 1% compared to the same period in 2001, CEO Alexander Cutler said.

Eaton's truck business posted sales of $315 million in the second quarter, a 21% increase over the same period last year, and recorded profits of $30 million compared to only breaking even in 2001.

Heavy-duty truck production among NAFTA partners Canada, Mexico and the U.S. was up 24% and NAFTA medium-duty truck production was flat. European truck production was down 6% and South American production decreased by 15% in the second quarter, he said.

"It is clear that our truck business is in a solid period of recovery," said Cutler. "We expect third quarter NAFTA heavy-duty truck production could increase as much as 15 to 20% from second quarter levels, and for the full year, we now expect production of heavy-duty trucks in NAFTA to total 170,000 units."

However, Cutler said he expects NAFTA heavy-duty truck production will peak in the third quarter and decline in the fourth quarter.