Eaton reports 3Q profits
Oct 16, 2002 12:00 PM
Eaton Corporation's profits more than doubled in the third quarter this year compared to the same period last year, primarily due to positive cash flow generated by its truck component manufacturing business. Eaton said its total sales in the third quarter topped $1.8 billion, 5% higher than in the same period last year, while generating net income of $90 million, compared to $47 million in the same quarter of 2001. Eaton's truck component segment posted sales of $322 million in the third quarter, a 27% increase over the same period last year, and recorded profits of $45 million, compared to just breaking even in 2001. Chairman & CEO Alexander Cutler said North American heavy-duty truck production was up 67% and medium-duty truck production rose 11%, while European truck production declined 7% and South American production decreased 4%. "For the full year, we now expect production of heavy-duty trucks in NAFTA to total 174,000 units," said Cutler. "However, the modest recovery we had anticipated in our end markets beginning in the fourth quarter appears to be delayed somewhat due to the slow and uneven pace of the economic recovery."
