Eaton Boosts 2Q Profits

Eaton Corp said yesterday it earned $161 million in profit for the second quarter and recorded sales of $2.4 billion. Profits jumped 20% over the $134 million in net income earned in the previous quarter, and leapfrogged 2Q 2003 profits by 73%. Alexander Cutler, Eaton chairman & CEO stated, “Sales growth in the quarter of 19% consisted of 3% from acquisitions, 2% from exchange rates, and 14% from

Eaton Corp said yesterday it earned $161 million in profit for the second quarter and recorded sales of $2.4 billion. Profits jumped 20% over the $134 million in net income earned in the previous quarter, and leapfrogged 2Q 2003 profits by 73%.

Alexander Cutler, Eaton chairman & CEO stated, “Sales growth in the quarter of 19% consisted of 3% from acquisitions, 2% from exchange rates, and 14% from organic growth. Our organic growth was made up of 9% growth in our end markets and 5% growth from outgrowing our end markets.

“In the second quarter, our segment operating margin before restructuring charges was 12.4%, a significant step up from the 11.7% margin in the first quarter," said Cutler. "Our operating cash flow for the quarter, at $330 million, was a record performance for the second quarter.”

Cutler noted strength in the company’s mobile hydraulics and truck market. However, he said nonresidential construction and European markets had “little upturn.”

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