CLEVELAND (Oct. 15)—Eaton Corp. reported net income of $40 million on sales of $1.75 billion for the quarter ended Sept. 30, compared to net income of $93 million on sales of just over $2 billion during the same quarter of 2000. Eaton's largest unit, Fluid Power, posted an operating profit of $30 million on sales of $600 million vs. earnings of $44 million on sales of $630 million during the same three-month period of last year. Excluding the impact of acquisitions and divestitures made in the segment during the past year, comparable sales were off about 10 percent year over year, Eaton said, still less than the 11-percent average decline in Fluid Power's markets. In a conference call with analysts and investors, Chairman and CEO Alexander Cutler said he does not expect any of the diversified company's segments to pick up before the middle of 2002. "We're dealing with very uncertain conditions (but) we remain confident we're maintaining our market positions," he said. When the upswing does come, Eaton's heavy truck and automotive units will lead it. "The news is good, we think, on the automotive side," Cutler said. Eaton is budgeting its operations around a vehicle production volume of 16 million for 2002.
Eaton third-quarter earnings down 39 percent
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