Automotive Trucks information on net.

CLEVELAND -- Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced net income per share of $1.09 for the third quarter of 2004, an increase of 58 percent over net income per share of $.69 in the third quarter of 2003. Sales in the quarter were a record $2.54 billion, 26 percent above the same period in 2003. Net income was $170 million compared to $107 million in 2003, an increase of 59 percent.

Net income in both periods included charges for restructuring activities related to the integration of acquisitions. Before these restructuring charges, operating earnings per share in the third quarter of 2004 were $1.13 versus $.72 per share in 2003, an increase of 57 percent, and operating earnings for the third quarter of 2004 were $177 million compared to $112 million in 2003, an increase of 58 percent.

Alexander M. Cutler, Eaton chairman and chief executive officer, said, "We are very pleased with our third quarter. Sales growth of 26 percent in the quarter consisted of 13 percent from organic growth, 11 percent from acquisitions, and 2 percent from exchange rates. Our organic growth was comprised of 9 percent in our end markets and 4 percent from outgrowing our end markets.We continue to expect our markets to grow between 7 and 8 percent for full year 2004," said Cutler. "Mobile hydraulics and truck markets have continued their strong performance, while electrical markets have posted modest growth and automotive markets are likely to post a small decline for the year.

"We are pleased with our third quarter margins, which were strong despite the normal seasonal weakness in our automotive business, higher metals costs, and the addition of the Powerware business, whose margins are currently lower than the rest of our electrical business," said Cutler.

"We anticipate that net income per share for 2004 will be between $3.95 and $4.05, and accordingly we anticipate that net income per share for the fourth quarter of 2004 will be between $.98 and $1.08. Operating earnings per share, which exclude restructuring charges to integrate our recent acquisitions, are anticipated for 2004 to be between $4.10 and $4.20, with operating earnings per share for the fourth quarter of between $1.03 and $1.13."

Business Segment Results

Third quarter sales of the Fluid Power segment were $759 million, 11 percent above the third quarter of 2003. Fluid Power markets grew 9 percent compared to the same period in 2003, with global hydraulics shipments up an estimated 16 percent, commercial aerospace markets up 7 percent, defense aerospace markets up 2 percent, and European automotive production up 1 percent. Operating profits in the third quarter were $81 million. Operating profits before restructuring charges were $84 million, up 25 percent compared to a year earlier.

"The strong growth in the mobile and industrial hydraulics markets seen in the first half continued into the third quarter," said Cutler. "We anticipate that the growth in mobile and industrial hydraulics is likely to continue well into 2005, although the rate of growth is likely to moderate from the levels seen in 2004. The commercial aerospace market showed the strongest quarterly growth since 2001, driven by strong growth in passenger air miles flown plus higher new plane deliveries. We now anticipate stronger commercial aerospace growth in 2005 than we had foreseen earlier this year.

"We closed the acquisition of the Walterscheid European connector business of GKN plc in early September," said Cutler. "This acquisition expands our product range and sales channels in Europe while also strengthening our position as a systems provider."

# posted by Medical Information : 11:40 PM