Eaton Corp. reported second quarter sales of $2.08 billion, up 8% from the same period last year. Net income was $93 million versus $88 million a year ago. Operating earnings were $99 million compared with $90 million.

Second quarter sales in Eaton's Truck segment were $317 million, up 1% compared to last year. Operating profits were $40 million, a 33% increase over 2002. NAFTA heavy duty truck production for the quarter was down 5% from a year ago.
In a teleconference with stock analysts, Eaton Chairman and CEO Alexander Cutler noted that in second quarter 2002 U.S. manufacturers had started to ramp up for increased demand driven by pull-ahead buying to avoid 2002 emissions compliant engines. Citing reports of stronger than expected order intake in May and June, Cutler said they continue to forecast 2003 NAFTA heavy truck production at about 190,000 units.
Eaton's truck business is tied to Dana Corp. through Roadranger, a joint marketing venture formed in 1998. Cutler said he could not comment on the possible takeover of Dana by ArvinMeritor, but did say that they don't perceive any material threat to their heavy truck business.
"We feel we're protected in the way the alliance is constructed," he added.
Eaton's Automotive segment posted record second quarter sales of $434 million, 3% above second quarter 2002. Sales for the period significantly outpaced end markets, Cutler noted, and the division also benefited from the strong euro.
Second quarter sales for the company's Industrial & Commercial Controls unit were $575 million, up 11% from last year.
For the first half of 2003, the company's sales totaled $3.95 billion, 10% higher than first half 2002. Net income was up 36%, to $165 million. Operating earnings, excluding restructuring charges, were $176 million, up 13% from a year ago.