Diversified industrial manufacturer Eaton Corp. reported sales for 2006 were up 12% from 2005, and profit was up 18%. Sales were $12.4 billion.
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Fourth quarter sales were up 10% to $3.1 billion, with profit up 15%.
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Segment Results
Fourth quarter sales for Electrical were $1.1 billion, up 9% over 2005. End markets grew about 2.5% for electrical, reflecting a slowdown from the growth rate in early 2006. In 2007, Eaton expects 4% growth, with nonresidential markets offsetting a decline in residential markets.
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In Fluid Power, fourth quarter sales were $985 million, 17% above the same period in 2005. Organic growth was 7%. Fluid Power markets grew 6%, with global hydraulics shipments up 7%, commercial aerospace markets up 14%, defense aerospace markets up 2% and European automotive production flat.
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Growth in mobile and industrial hydraulics markets moderated from earlier in the year. In 2007, Eaton expects growth in the construction equipment markets will be lower than in 2006, while agricultural equipment markets are expected to grow. Industrial markets are likely to post lower growth than in 2006, Eaton reports. It expects strong growth in the commercial aerospace market, and modest growth and defense aerospace markets. Eaton expects growth of 4% in Fluid Power markets.
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The Truck segment posted sales of $620 million in the fourth quarter, up 13%. NAFTA heavy-duty production was up 16% compared to 2005, NAFTA medium-duty production was up 20%, European truck production was flat, and Brazilian vehicle production was up 1%. Eaton expects its production of heavy-duty trucks will be between 205,000 and 210,000 units – in 2006, it produced 378,000 units.
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The Automotive segment posted fourth quarter sales of $394 million, 6% lower than last year. Automotive production in NAFTA declined by 8% in the fourth quarter and European production was flat. Sales in the fourth quarter were hit by reductions in production in North America and importation of engines by Asian producers. In 2007, Eaton expects weaker production in NAFTA, with more flat production in Europe.
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