Eaton Reports Growth of 18% in Third Quarter

Diversified industrial manufacturer Eaton Corp., Cleveland, OH, (NYSE:ETN) reported sales for the third quarter of 2010 were up 18 percent from the prior-year period. Profit was $268 million, an increase of 39 percent.

The 18 percent sales increase was due to an increase in core sales, with just 1 percent attributed to acquisitions, which was offset by a 1 percent decline from exchange rates.

Eaton reported its end markets increased 14 percent in the quarter.

Third quarter sales for the Electrical Americas segment were $967 million, up 15 percent compared to 2009. Operating profits in the third quarter were $141 million, down 1 percent from results in 2009. The manufacturer saw growth in power quality and industrial markets. Growth was offset by weakness in nonresidential markets.

Bookings for the segment increased 8 percent in the third quarter. The manufacturer expects markets will decline by 1 percent for this segment in 2010.

Sales for the Electrical Rest of World segment were $707 million, an increase of 9 percent compared to the third quarter of 2009. The sales increase was comprised of a 12 percent increase in core sales and a 1 percent increase from acquisitions offset by a 4 percent decline due to foreign currency.

In the Hydraulics segment, third quarter sales were $583 million, up 40 percent from the third quarter of 2009. Hydraulics markets in the third quarter grew 44 percent compared to the same period in 2009, with U.S. markets up 58 percent and non-U.S. markets up 34 percent. Operating profits in the third quarter were $76 million. In the third quarter of 2009, operating profits were $20 million, excluding acquisition integration charges of $2 million.

Eaton reported that global hydraulics markets continued to rebound in the third quarter. Bookings increased 43 percent in the third quarter.

The Aerospace segment posted third quarter sales of $390 million, a decrease of 1 percent from the third quarter of 2009. Aerospace markets in the third quarter increased 3 percent, with U.S. markets increasing 4 percent and non-U.S. markets increasing 1 percent. Operating profits in the third quarter were $60 million. Excluding acquisition integration charges of $1 million, operating profits were $61 million, the same as in the third quarter of 2009.

Bookings in the Aerospace segment were up 12 percent in the third quarter. Eaton reported the commercial aerospace aftermarket has started to rebound, with both U.S. and non-U.S. market showing modest growth.

The Truck segment posted sales of $534 million in the third quarter, up 33 percent compared to 2009. Truck markets in the third quarter were up 28 percent, with U.S. markets up 24 percent and non-U.S. markets up 31 percent. Operating profits were $74 million compared to $25 million in the third quarter of 2009.

The Automotive segment posted third quarter sales of $390 million, up 20 percent from the third quarter of 2009. Automotive unit production in the third quarter grew 14 percent, with U.S. auto production up 27 percent and production outside the U.S. up 8 percent compared to the third quarter of 2009. Operating profits in the third quarter were $39 million, an increase of 70 percent compared to the third quarter of 2009.

Eaton sells products to customers in more than 150 countries