NEW YORK (Reuters) - Diversified manufacturer Eaton Corp (ETN.N) posted a higher-than-expected quarterly profit on Monday amid strong industrial demand for electrical systems and a rebounding U.S. truck market, and it raised its full-year forecast.
The maker of truck transmissions, hydraulics and electrical products said its profit rose 49 percent to $336 million, or 97 cents per share, from $226 million, or 66 cents per share, a year earlier.
The results beat average analysts’ estimates by 2 cents a share, according to Thomson Reuters I/B/E/S.
Sales rose 21 percent to $4.09 billion, also ahead of forecasts. A weaker U.S. dollar added 6 percentage points to the revenue growth.
Operating profit more than doubled in Eaton’s truck segment, as U.S. truck production rebounded, and rose 20 percent in its electrical Americas business, its biggest. Overall, Eaton’s markets are growing faster than it estimated in April, the company said.
Cleveland-based Eaton said sales and profit margins would be up in the third quarter from the second, citing strong industrial markets. It said global auto production would rebound after being disrupted by the March earthquake and tsunami in Japan.
Eaton raised the midpoint of its 2011 profit forecast 15 cents to $3.90 to $4.10 per share from continuing operations. Analysts were looking for $3.92.
Reporting by Nick Zieminski; Editing by Lisa Von Ahn and Maureen Bavdek