Eaton Sales Up 15% in Third Quarter

Diversified industrial manufacturer Eaton Corp. (NYSE: ETN), Cleveland, OH, reported sales for the third quarter of $4.12 billion, up 15 percent over the same quarter a year ago. Core sales improved 11 percent. Profit increased 36 percent to $365 million.

For the first nine months, sales were $12 billion, up 19 percent over the same period a year ago. Profit increased 52 percent to $988 million.

Third quarter sales for the Electrical Americas segment were $1.1 billion, up 11 percent compared to 2010. Operating profits in the third quarter were $156 million. Excluding acquisition integration charges of $3 million during the quarter, operating profits were $159 million, up 13 percent over results in 2010.

"End markets for our Electrical Americas segment grew 11 percent during the third quarter," CEO Alexander M. Cutler said. "As we had anticipated, the nonresidential construction markets in the U.S. have bottomed and are starting to show modest growth."

Sales for the Electrical Rest of World segment were $755 million, an increase of 7 percent compared to the third quarter of 2010. The sales increase was comprised of a 7 percent increase from foreign currency and a 2 percent increase from acquisitions, offset by a 2 percent decline in core sales. The segment reported operating profits of $62 million.

Hydraulics segment sales were $717 million, up 23 percent compared to the third quarter of 2010. Global hydraulics markets were up 14 percent in the quarter, with U.S. markets up 18 percent and non-U.S. markets up 11 percent. Operating profits in the third quarter were $109 million. Excluding acquisition integration costs of $1 million during the quarter, operating profits were $110 million, up 45 percent over the third quarter of 2010.

Aerospace segment sales were $420 million, up 8 percent compared to the third quarter of 2010. Aerospace markets were up 7 percent compared to the third quarter of 2010. Operating profits in the third quarter were $71 million, up 16 percent over the third quarter of 2010.

The Truck segment posted sales of $715 million in the third quarter, up 34 percent compared to 2010 and a record quarterly sales level for this segment. Truck production in the third quarter was up 25 percent, with U.S. markets up 51 percent and non-U.S. markets up 7 percent. The segment reported operating profits of $139 million.

The Automotive segment posted third quarter sales of $442 million, up 13 percent over the third quarter of 2010. Global automotive markets were up 8 percent, with U.S. markets up 13 percent and non-U.S. markets up 6 percent. The segment reported operating profits of $62 million.