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Diversified industrial manufacturer Eaton Corp., Cleveland, OH, reported sales in the fourth quarter of 2009 were $3.5 billion, up 3% from the same period in 2007. Profit was $163 million, a decrease of 36%.
Sales growth in the fourth quarter consisted of 13% percent growth from acquisitions, offset by a 6% decline from lower exchange rates and a 4% decline in organic growth. End markets in the fourth quarter declined by 6%.
For the full year 2008, the company reported sales of $15.4 billion, 18% above 2007. Profit increased 6% to $1.06 billion.
So far in 2009, our markets have continued to decline. We anticipate that our markets will decline through at least the second, and possibly the third, quarter, CEO Alexander M. Cutler said. "We took significant employee reduction actions in 2008 in anticipation of the severe downturn, and in January we have taken further actions. The continued decline in our end markets in early 2009 unfortunately necessitated that we reduce our workforce even further than we originally anticipated."
Employee reductions in 2008 and 2009 total about 10% of the company's full-time workforce.
Business Segment Results
Fourth quarter sales for the Electrical segment were $1.7 billion, up 34% over 2007. Operating profits in the fourth quarter were $194 million.
In the Hydraulics segment, fourth quarter sales were $533 million, 11% lower than the fourth quarter of 2007. Operating profits in the fourth quarter were $44 million.
The Aerospace segment posted fourth quarter sales of $446 million, an increase of 6% over the fourth quarter of 2007. Fourth quarter operating profits were $76 million.
The Truck segment posted sales of $439 million in the fourth quarter, down 17%. Operating profits were $41 million.
The Automotive segment posted fourth quarter sales of $333 million, down 37% from the comparable quarter of 2007. The segment recorded an operating loss of $56 million.