Eaton Corp. reported record second-quarter sales of $2.40 billion -- 19% above the same period in 2003 for the Cleveland-based manufacturer.

Net income was $161 million compared to $93 million in 2003, an increase of 73%.
Alexander M. Cutler, Eaton chairman and chief executive officer, said, "We are very pleased with our second quarter, which came in above the high end of our guidance. Sales growth in the quarter of 19% consisted of 3% from acquisitions, 2% from exchange rates, and 14% from organic growth.
"As we survey our end markets in 2004, we now anticipate growth of between 7% to 8%," said Cutler. "The mobile hydraulics and truck markets, in particular, are stronger than we had anticipated, as are the residential electrical markets."
The truck segment posted sales of $436 million in the second quarter, up 38% compared to 2003, and recorded operating profits of $78 million, nearly twice the profit earned in the second quarter of 2003. NAFTA heavy-duty production was up 41% compared to 2003, NAFTA medium-duty production was up 15%, European truck production was up 9% and Brazilian vehicle production was up 17%.
"Second quarter production of NAFTA heavy-duty trucks totaled 63,000 units, about 17% more than in the first quarter of 2004," said Cutler. "Monthly orders for new NAFTA heavy-duty trucks during the second quarter have averaged 33,000 units. As a result, we are now estimating that the NAFTA heavy-duty market in 2004 is likely to total at least 255,000 units.
"We made progress during the quarter on both our new truck joint ventures in China," said Cutler. "We expect the medium-duty joint venture with FAW to formally start in late July. We are still on target to start production in our Eaton Fast Gear heavy-duty joint venture in the fourth quarter of this year."
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