Eaton tops estimates, predicts profit rebound

(chinatrucks.com, Jan.26, 2010)Diversified manufacturer Eaton Corp (ETN.N: Quote, Profile, Research) reported higher-than-expected quarterly profit on Monday, citing modestly stronger markets but much better operating performance, and said it expects earnings to rebound this year as industrial, auto and truck markets recover.

Eaton, a maker of hydraulics, electrical control systems and truck transmissions, said net profit rose 29 percent to $211 million, or $1.25 per share, from $163 million, or 98 cents per share a year earlier.

Earnings excluding acquisition-related charges were $1.35 per share. Analysts, on average, expected profit of $1.23 per share, according to Thomson Reuters I/B/E/S.

Revenue fell 10 percent to $3.13 billion, compared with Wall Street forecasts for sales of $3.07 billion.

Eaton said global market conditions have begun to improve, and said it has better "visibility" into 2010, which it called a transitional year before much better conditions arrive in next year.

Cleveland-based Eaton forecast its markets will rise by 5 percent this year, estimating weaker aerospace markets, but double-digit expansions in the hydraulics, U.S. auto and world truck markets.

It estimated 2010 earnings per share in a range of $3.70 to $4, excluding acquisition costs, which is above the average Wall Street estimate of $3.65 a share.

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