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Sales growth in the fourth quarter consisted of 5% organic growth and 4% from acquisitions, offset by a 1% decline from lower exchange rates. The 5% organic growth was made up of 3% growth in end markets and 2% growth from outgrowing end markets.
The company expects sales growth of about 10% in 2006.
Fourth quarter sales of the Electrical segment, Eaton's largest business group, were $1.01 billion, up 13% over 2004. Eaton expects growth of between 4% and 5% in 2006; it reported that nonresidential electric markets will be a strong source of that growth.
In the Fluid Power segment, fourth quarter sales were $839 million, 8% above the fourth quarter of 2004. Fluid Power markets grew 4% compared to the same period in 2004, with global hydraulics shipments up 5%, commercial aerospace markets up 11%, defense aerospace markets up 4%, and European automotive production down 1%.
Eaton expects growth in agricultural and construction equipment markets will be lower in 2006, and that industrial markets should have growth similar to 2005. The commercial aerospace market is expected to post significantly higher growth in 2006, and defense aerospace markets are expected to be flat.
The Truck segment posted sales of $549 million in the fourth quarter, up 10% compared to 2004.
NAFTA heavy-duty production was up 5% compared to 2004, NAFTA medium-duty production was down 1%, European truck production was up 5%, and Brazilian vehicle production was up 1%.
The Automotive segment posted fourth quarter sales of $442 million, 4% lower than the comparable quarter of 2004. Automotive production in NAFTA increased 3% compared to the fourth quarter of 2004, while European production declined 1%. For 2006, Eaton anticipates slightly weaker production in NAFTA and a slight increase in production in Europe.Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 billion. Markets include electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 59,000 employees and sells products to customers in more than 125 countries.