Eaton Says 4th-Quarter Profit Falls a Less-Than-Expected 29%
Cleveland, Jan. 20 (Bloomberg) -- Eaton Corp., a maker of
products ranging from engine parts to aircraft switches to golf-
club grips, said fourth-quarter profit fell 29 percent as a
slumping semiconductor-equipment industry hurt results.
Profit before a charge fell to $91 million, or $1.27 a
share, from $129 million, or $1.66, in the fourth quarter of
1997. The results beat expectations of $1.14 a share, the average
estimate of analysts surveyed by First Call Corp.
Revenue fell 17 percent to $1.61 billion from $1.93 billion.
''Results were deeply affected all year by the worldwide
collapse in the semiconductor equipment industry,'' Stephen
Hardis, chairman and chief executive, said in a statement.
Eaton's customers have pared spending for automated
controls, used to control factory machinery, because of shrinking
economies in many countries. Sales and prices of semiconductor-
manufacturing equipment were also hurt by slowing world
economies. Eaton is combating slumping sales with cost-cutting
measures and job cuts.
In the 1998 fourth quarter, Cleveland-based Eaton took a
restructuring charge of $29 million, or 26 cents a share.
Including the charge, net income was $72 million, or $1.01.
Eaton shares fell 1/2 to 71 1/16 yesterday.
--Aimee Sullivan in the Princeton newsroom (609) 279-4042 with |
