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Updated:
7/21/2010 9:00:00 AM
Eaton’s 2Q Profit Jumps
Truck Segment Shows Improvement
Vehicle parts manufacturer Eaton Corp. said Wednesday its second-quarter profit jumped as its truck segment sales improved 53%.
The company earned $226 million, or $1.33 per share, up from $29 million, or 17 cents, a year ago, higher than the $1.05 to $1.15 it had previously forecast.
Sales rose 16% to $3.38 billion, the company said in a statement.
Truck segment sales rose to $492 million, with truck production up 28% worldwide — 32% in the U.S. and 24% in other markets. The segment’s operating profit was $59 million.
Chairman and Chief Executive Officer Alexander Cutler said in a statement that the company expects truck production will increase in the second half of the year.
North American demand for Class 8 trucks “is beginning to improve, as freight growth and the aging truck fleet are finally starting to generate an increase in truck orders. For all of 2010, we now anticipate our truck markets will increase by 23%, stronger than our earlier expectations,” he said.
The automotive segment’s sales rose 44% to $389 million, led by U.S. markets that jumped 73%. The segment’s operating profit was $39 million.
Eaton said its third-quarter net income will be $1.25 to $1.35 a share, and raised its full-year guidance to $4.75 to $4.95 per share. 2010 operating earnings will be $4.95 to $5.10 a share, the company said.
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