While Eaton Corp. showed slight improvement over the second quarter of this year, the company's third quarter saw weak overall income and sales as well as decreased truck sales compared to the year-ago period
, as U.S. truck markets were down 43 percent in the third quarter.
Net income during the third quarter was $193 million, or $1.14 a share, down 39 percent from $315 million in the third quarter of 2008. Overall sales were down 26 percent from 2008 at $3 billion.
Despite the declines, the company had a positive view of the results, in light of the second quarter's performance.
"We are pleased with our third quarter results, which significantly exceeded our guidance," said Alexander Cutler, Eaton chairman and CEO. "Our revenues in the third quarter grew 4 percent over the second quarter, reflecting equally the very early stages of recovery in our end markets and benefit from the strengthening of currencies against the dollar."
The company's truck segment posted sales of $401 million, down 35 percent from $620 million during the third quarter of 2008. Meanwhile, truck markets were down 31 percent in the third quarter, the company says. Operating profits in the segment were $25 million, a 74 percent fall from 2008.
"Orders in the NAFTA Class 8 truck market are improving marginally," said Cutler. "Other truck markets are expected to be broadly flat over the balance of the year."
According to Cutler, the company doesn't expect the fourth quarter to see much improvement, with net income per share between $1 and $1.10.
"As we look at our end markets, we expect the economic recovery we are beginning to experience in our early cycle markets will continue," said Cutler. "For the full year, we still believe our end markets will decline by 21 to 22 percent."
, as U.S. truck markets were down 43 percent in the third quarter.
Net income during the third quarter was $193 million, or $1.14 a share, down 39 percent from $315 million in the third quarter of 2008. Overall sales were down 26 percent from 2008 at $3 billion.
Despite the declines, the company had a positive view of the results, in light of the second quarter's performance.
"We are pleased with our third quarter results, which significantly exceeded our guidance," said Alexander Cutler, Eaton chairman and CEO. "Our revenues in the third quarter grew 4 percent over the second quarter, reflecting equally the very early stages of recovery in our end markets and benefit from the strengthening of currencies against the dollar."
The company's truck segment posted sales of $401 million, down 35 percent from $620 million during the third quarter of 2008. Meanwhile, truck markets were down 31 percent in the third quarter, the company says. Operating profits in the segment were $25 million, a 74 percent fall from 2008.
"Orders in the NAFTA Class 8 truck market are improving marginally," said Cutler. "Other truck markets are expected to be broadly flat over the balance of the year."
According to Cutler, the company doesn't expect the fourth quarter to see much improvement, with net income per share between $1 and $1.10.
"As we look at our end markets, we expect the economic recovery we are beginning to experience in our early cycle markets will continue," said Cutler. "For the full year, we still believe our end markets will decline by 21 to 22 percent."
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