Eaton posts 1Q loss, cuts profit forecast
Eaton Corp., the Cleveland-based maker of circuit breakers and fuel pumps, posted a first-quarter loss of $52 million and cut its 2009 profit forecast as sales sagged worldwide.
The company has operations in Carol Stream, Chicago, Downers Grove, Des Plaines, Glendale Heights and Wood Dale.
Eaton's net loss of 30 cents a share compares with profit of $247 million, or $1.64, a year earlier, the company said in a statement today. Sales fell 20 percent to $2.81 billion.
Chief Executive Officer Sandy Cutler has reorganized business units, closed plants, furloughed employees and cut 10 percent of the workforce. Last month, Moody's Investors Service lowered Eaton's debt ratings amid slackening sales to truck, automotive and construction customers.
In February, Eaton had projected a 25-cent to 35-cent loss per share, down from a previous forecast of break-even results. The average estimate of 19 analysts surveyed by Bloomberg was profit of 27 cents a share, excluding some items. The company's sales trailed the $3.06 billion average estimate of 14 analysts surveyed by Bloomberg.
Eaton lowered its 2009 profit forecast a third time, saying it would earn $2.50 to $3 a share. The company earlier had projected profit of $3.60 to $4.20 a share.
Eaton rose $1.29, or 3 percent, to $44.75 on April 17 in New York Stock Exchange composite trading. The shares have dropped 47 percent in the past 12 months.
Eaton customers include Boeing Co., Rolls-Royce Group Plc, Ford Motor Co. and General Motors Corp.