Eaton Reports Solid Second-Quarter Sales

July 23, 2010
Eaton Corp., Cleveland, announced double-digit gains in sales in 2Q 2010. Sandy Cutler, Eaton chairman and CEO, said the 16-percent increase in global sales reflected the continued expansion in the company’s markets around the world

Eaton Corp., Cleveland, announced double-digit gains in sales in 2Q 2010. Sandy Cutler, Eaton chairman and CEO, said the 16-percent increase in global sales reflected the continued expansion in the company’s markets around the world. “As we survey our end markets, the year is shaping up to be better than we had forecast in April,” he said. “We now anticipate our overall end markets will grow by eight percent versus our earlier forecast of six percent.”

Second quarter sales for the company’s Electrical Americas segment were $894 million, up one percent compared to 2009. Operating profits for this division in the second quarter were $120 million. Excluding acquisition integration charges of $1 million during the quarter, operating profits were $121 million, down 17 percent from results in 2009.

“End markets for our Electrical Americas segment declined two percent during the second quarter,” said Cutler. “Our late-cycle non-residential markets declined about 17 percent in the quarter, while we saw continued growth in our early-cycle businesses and the start of recovery in our mid-cycle businesses.

“Our bookings in the Electrical Americas segment, adjusted for foreign exchange, increased 27 percent compared to the second quarter of 2009,” said Cutler. “We now anticipate markets in our Electrical Americas segment will decline just 1 percent for the full year, as the recovery in our early- and mid-cycle markets and the benefits from stimulus programs have offset the decline in the non-residential market.”

Eaton also announced that it had completed its acquisition of EMC Engineers, an energy engineering and services company based in Denver that delivers energy-efficiency solutions for a wide range of governmental and commercial customers, and that it won a contract to design and install a turnkey solar photovoltaic system at the New Mexico Veterans Affairs Health Care System. The scope of the $20 million contract includes designing and installing a 3.2MW photovoltaic system throughout the site.

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