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

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

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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; robert.tita@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on EATON CORP PLC
09/26 EATON : Presolicitation Notice - Refurbish Circuit Breaker (Eaton Corp) for Gene..
09/26 EATON : New Synflex DIN/ISO Air Brake and Fuel Tubing Offers Increased Performan..
09/24 EATON : MILITARY $7,000 Federal Contract Awarded to Eaton
09/24 EATON : MILITARY $46,240 Federal Contract Awarded to Centurian Mechanical Seals
09/22 EATON : Showcasing Waste Heat Recovery System Concepts to Improve Fuel Economy, ..
09/22 EATON : Develops 2-Speed Transmission for Electric Vehicle Application
09/22 EATON : Develops Lightweight Polymer Air Conditioning Conveyance System
09/22 EATON : Showcasing Advanced Valvetrain Technologies at IAA, including Hydraulic ..
09/22 EATON : Amendment to Combined Synopsis/Solicitation - J-- UPS MAINTENANCE SERVIC..
09/22 DEADLINE TOMORROW : Levi & Korsinsky, LLP Reminds Shareholders of Eaton Corporat..
More news
Sector news : Electrical Components & Equipment - NEC
09/20DJTE CONNECTIVITY : Files 8K - Changes Executive Management
09/19 SAMSUNG NOTE 7 PHONE FIRE IN CHINA L : supplier
09/19DJPT Medco Energi to Buy Oil-and-Gas Stake in Indonesia
09/16DJProspects for Economic Surge Ebb -- WSJ
09/15DJOptimism Fades for U.S. Economic Boost By Year-End
More sector news : Electrical Components & Equipment - NEC
Advertisement
Financials ($)
Sales 2016 19 944 M
EBIT 2016 2 464 M
Net income 2016 1 951 M
Debt 2016 7 425 M
Yield 2016 3,42%
P/E ratio 2016 14,72
P/E ratio 2017 13,94
EV / Sales 2016 1,81x
EV / Sales 2017 1,80x
Capitalization 28 601 M
More Financials
Income Statement Evolution
More Financials
Consensus 
Mean consensus HOLD
Number of Analysts 26
Average target price 66,7 $
Spread / Average Target 6,0%
Consensus details
EPS Revisions
More Estimates 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
Linda A. Hill Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
EATON CORP PLC28 787
KEYENCE CORPORATION10.14%43 912
SCHNEIDER ELECTRIC19.79%41 822
EMERSON ELECTRIC CO.7.53%33 412
EATON CORPORATION PLC20.87%28 787
DAIKIN INDUSTRIES, LTD..6.74%27 763
More Results