Diversified industrial manufacturer Eaton Corp. has announced operating earnings per share of $.98 for the fourth quarter of 2002, 51% above results one year earlier of $.65 per share.

Sales in the quarter were $1.78 billion -- 5% above last year. Net income before unusual items was $69 million compared to $47 million in 2001.
After all unusual items in both periods, net income in the fourth quarter of 2002 was more than double that in 2001, with 2002 net income of $67 million and earnings per share of $.94, compared to $30 million and $.42 per share in 2001.
For the full year 2002, sales were $7.21 billion, 1% lower than in 2001. Net income of $315 million, before unusual items, increased 35% over last year, and operating earnings per share of $4.40 rose 33% above 2001. After all unusual items in both periods, net income in 2002 increased to $281 million, 66% more than in 2001, and earnings per share of $3.92 rose 64% compared to last year.
Alexander M. Cutler, Eaton chairman and chief executive officer, said, "We are pleased with our fourth quarter and full year results. For the past three quarters, we have experienced revenue growth and significantly higher operating margins compared to the same periods a year ago. The restructuring actions we took in 2001 and 2002 have generated the $130 million in savings we expected, allowing us to post significantly higher earnings despite our end markets showing yet another year of decline in 2002."
Cutler said the truck segment posted sales of $274 million in the fourth quarter, a 17% increase over the fourth quarter of 2001, and recorded profits of $27 million before restructuring charges, compared to a loss of $9 million a year ago. NAFTA heavy-duty truck production was up 12%, NAFTA medium-duty truck production was up 6%, European truck production was down 6%, and South American production increased by 5%.
"Heavy-duty truck production in NAFTA totaled 181,000 units in 2002. We expect that production during 2003 could approach 190,000 units, with volumes lower in the first quarter and strengthening during the balance of the year," said Cutler. "The positive impact of our extensive restructuring actions in this segment over the last two years can be seen in the $36 million of increased profit before restructuring costs in the fourth quarter of 2002 on increased sales of $39 million, compared to the same period in 2001."
Among developments in the truck segment was the official dedication in November of the new heavy-duty transmission plant located in San Luis Potosi, Mexico, which is now fully operational.
Eaton is a global $7.2 billion diversified industrial manufacturer that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and fuel economy; and intelligent truck systems for fuel economy and safety. Eaton has 48,000 employees and sells products in more than 50 countries.
For more information, visit www.eaton.com.