Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Eaton Corp PLC    

EATON CORP PLC
Mes dernières consult.
Most popular
  Report  
SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

U.S. Truck Market Hasn't Hit The Skids --Eaton CEO

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/24/2012 | 03:42am CEST
   By Bob Tita and James R. Hagerty 
   Of  
 

The U.S. commercial truck market should generate solid growth this year after truck makers align their production with moderating demand, Eaton Corp. (>> Eaton Corporation) Chairman and Chief Executive Alexander Cutler said Monday.

Cutler, whose company is a major supplier of transmissions to the truck market, dismissed recent assessments by analysts that the North American truck market has stalled after three straight months of lower year-over-year orders. Rising fuel costs, scattered reports of orders being cancelled and factory production cuts have added to the bearish outlook for the truck industry.

"We're not panicked," said Cutler in an interview. "You've got people over reacting to pieces of data."

Cleveland-based Eaton on Monday reiterated its earlier forecast that production of heavy-duty trucks in North American will reach about 300,000 vehicles, roughly 16% higher than the 259,000 vehicles built in 2011. Cutler though acknowledged that production volumes have been out of whack lately. He said truck makers ramped up production late last year to accommodate a surge in orders. But the accelerated volumes extended into 2012 with production recently running at an annualized rate of about 325,000 vehicles, even though March orders came in at annualized rate of about 206,000 trucks.

Truck maker Paccar Inc. (PCAR) earlier this month announced that it plans to reduce heavy-duty truck production for its Kenworth brand after orders declined 10%. The company intends to reduce its workforce at an Ohio assembly plant by 10%. Paccar will release first-quarter earnings on Tuesday.

Cutler said he expects orders to accelerate from March, which he described as a seasonally weak month because truck markers are transitioning to a new model year, prompting some truck buyers to delay or cancel their orders to obtain the new truck models.

"Cancellations are always higher in March and April," he said.

Other aren't convinced the weakness is temporary. Kristine Kubacki, an analyst in St. Louis for Avondale Partners, expects heavy-duty truck production in North American to be no higher than 255,000 to 260,000 trucks this year.

She maintains a federal tax program to encourage purchases of capital equipment siphoned truck sales away from 2012 as big fleet moved their purchases to 2011 to that advantage of the program, which expired at the end of last year. Kubacki on Friday lowered her ratings on truck makers Paccar and Navistar International Corp. (>> Navistar International Corporation) and parts manufacturer Meritor Inc. (>> Meritor Inc)

"Given the current inflated inventories and production levels for the industry, we could be looking at 30%-plus production cuts in the back half of the year," she said in a note to investors.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
MERITOR INC 0.37% 21.47 Delayed Quote.-8.82%
NAVISTAR INTERNATIONAL CORP 1.71% 41.7 Delayed Quote.-2.73%
PACCAR 0.98% 62.11 Delayed Quote.-12.06%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on EATON CORP PLC
06/22EATON : announces Electrical Sector leadership changes, realigns sales and marke..
PU
06/21MASS NOTIFICATION SYSTEMS MARKET GRO : This market research report on Mass Notif..
AQ
06/20EATON : This weekend's NASCAR truck race gains sponsors
AQ
06/20EATON : MILITARY $818,340 Federal Contract Awarded to Eaton
AQ
06/19EATON : MILITARY $361,200 Federal Contract Awarded to Eaton
AQ
06/18EATON : celebrates MANGO project partnership milestone and contributes to effici..
PU
06/14THE GLOBAL INTELLIGENT BUILDING AUTO : Key players profiled in this report are A..
AQ
06/13EATON : Names Safford Hazen Vice President of Sales, North America, Crouse-Hinds
PU
06/12EATON : Simulation for Grid Transmission, Distribution
AQ
06/11EATON : Intelligent Power Manager Software delivers enhanced power management ca..
PU
More news
Financials ($)
Sales 2018 21 528 M
EBIT 2018 3 002 M
Net income 2018 2 281 M
Debt 2018 6 860 M
Yield 2018 3,39%
P/E ratio 2018 14,61
P/E ratio 2019 13,38
EV / Sales 2018 1,90x
EV / Sales 2019 1,79x
Capitalization 34 083 M
Income Statement Evolution
Consensus
 
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 87,5 $
Spread / Average Target 15%
EPS Revisions
Managers
NameTitle
Craig Arnold Chairman & Chief Executive Officer
Richard H. Fearon Vice Chairman, Chief Financial & Planning Officer
William W. Blausey Chief Information Officer & Senior Vice President
Ramanath Ramakrishnan Chief Technology Officer & Executive VP
Gerald Bernard Smith Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
EATON CORP PLC34 083
KEYENCE CORPORATION1.98%73 051
SCHNEIDER ELECTRIC SE0.65%48 267
NIDEC CORPORATION4.74%45 779
EMERSON ELECTRIC1.25%44 352
DAIKIN INDUSTRIES, LTD.-0.37%35 973