Eaton Sales Grow 13% in 3Q - Modern Distribution Management

Eaton Sales Grow 13% in 3Q

Diversified industrial manufacturer Eaton Corporation, Cleveland, OH, sales for the third quarter 2006 were up 13% from the same period a year ago. Sales were $3.12 billion. Net income rose 25% to $248 million.


‘We expect the growth rate in our overall end markets to weaken slightly in the fourth quarter, id=bwanpa11>’ said Chairman and CEO Alexander M. Cutler. id=bwanpa12>’While the non-residential electrical and hydraulics markets remain strong, and the heavy-duty truck market should post a strong finish to the year, markets likely to weaken during the quarter are the residential construction market for our electrical products, North American and Brazilian automotive production, and Brazilian agricultural equipment production.”


id=bwanpa13>Business Segment Results
Third quarter sales for the Electrical segment were $1.08 billion, up 10% over 2005. ‘End markets for our electrical business grew about 6% during the third quarter, id=bwanpa32>’ said Cutler. id=bwanpa33>’While we expect the non-residential construction markets to remain very strong, the decline in the residential construction market is continuing. As a result, we expect end market growth in the Electrical segment over the balance of the year to be slightly lower, at about 5%.


id=bwanpa34>’Our margins were impacted during the quarter by the high level of copper prices. The higher prices reduced third quarter operating profit in the Electrical segment by $9 million compared to our plan at the start of the year.”


id=bwanpa37>In the Fluid Power segment, third quarter sales were $998 million, 29% above the third quarter of 2005. Excluding the impact of acquisitions, the Fluid Power segment grew 9% during the quarter. Fluid Power markets in the third quarter grew 5% compared to the same period in 2005, with global hydraulics shipments up an estimated 7%, commercial aerospace markets up 13%, defense aerospace markets flat, and European automotive production down 4%.


 ‘The global hydraulics markets posted another quarter of strong growth, driven by continued investment in industrial and construction equipment worldwide, id=bwanpa42>’ said Cutler. id=bwanpa43>’We anticipate that the global hydraulics markets are likely to continue to grow over the balance of 2006 at the pace seen in the third quarter. The commercial aerospace market showed very strong growth in the quarter, while defense aerospace remained flat.”


id=bwanpa44>The Truck segment posted sales of $647 million in the third quarter, up 8% compared to 2005. In the third quarter, NAFTA heavy-duty truck production was up 11% compared to 2005, NAFTA medium-duty production was up 13%, European truck production was up 11%, Brazilian vehicle production was up 1%, and Brazilian agricultural equipment production was down 18%.


id=bwanpa48>The Automotive segment posted third quarter sales of $394 million, 5% less than the comparable quarter of 2005. Automotive production in NAFTA was down 9% while European production was down 4% compared to the third quarter of 2005.


Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 billion in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls. Eaton has sells products in more than 125 countries.


Related Links:
Eaton Corp. to Acquire Dover’s Fine Filtration Business
Eaton Corp. Sees Sales Rise 13% in 2005

More Breaking News

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.