Eaton Corp. met its own performance expectations and exceeded consensus analyst estimates for first quarter 2001, despite tough operating conditions in several of its businesses.

"While specific segment results were mixed, we once again realized the benefits of Eaton's diversification and stronger business mix," said Chairman and CEO Alexander Cutler.
Overall, the company reported operating earnings from continuing operations of $73 million versus $111 million for first quarter 2000. Sales were $1.98 billion, up 9% from last year. Net income, including gains from the sale of businesses and restructuring charges, was $50 million compared to $113 million a year ago.
Truck segment sales totaled $281 million in first quarter, a 37% drop from the previous year. The company noted that NAFTA Class 8 truck production during the period was down 54% and medium duty truck sales were off 30%. European truck output was up 3% and South American commercial vehicle production rose 22%.
Before restructuring charges, the segment operated at breakeven for the quarter. In first quarter 2000 it showed a $60 operating profit.
"Activity in North American markets remains extraordinarily depressed, with heavy truck production currently at the lowest levels since 1992," Cutler said. "In that context, we are pleased that our business reached breakeven this quarter compared to a $12 million loss in the fourth quarter of last year."
Eaton's Truck segment is currently undergoing a $55 million restructuring, which Cutler said will make it more flexible, less capital intensive, and less affected by market ups and downs.
The Automotive segment reported sales of $470 million for the quarter, 5% below last year; but the company noted that industry production in NAFTA countries was down 17% and European auto production was flat.
Eaton's largest business segment, Fluid Power, posted sales of $637 million, up 1% from a year ago.
Industrial & Commercial Controls sales were $559 million, down 3% from last year.