Eaton cuts full-year forecast for 3rd time

CLEVELAND - Eaton Corp., which makes parts for airplanes, vehicles and electrical equipment, on Monday cut its full-year forecast for the third time on expectations of more global economic weakness.

Eaton said it now expects per-share net income of $1.65 and $1.85, down from a February projection of $3.60 to $4.20 per share. Before that, the company forecast 2009 income of $3.80 to $4.80 per share.

Analysts polled by Thomson Reuters expect income of $1.90 per share.

"As we survey our end markets, the year is shaping up to be considerably weaker than we had forecast in April," said CEO Alexander M. Cutler in a statement.

"We now anticipate our overall end markets will decline by between 21 and 22 percent versus our earlier forecast of a decline between 15 and 16 percent. We see our U.S. markets declining by 25 percent, while our non-U.S. markets are expected to decline by 19 percent," Cutler added.

Eaton also forecast a third-quarter profit per share of 80 cents to 90 cents. Analysts expect profit of 89 cents per share.

The company also said its second-quarter profit tumbled 92 percent as plunging sales and a stronger dollar offset cost-cutting efforts, but results topped analyst estimates.

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