By Mridhula Raghavan
Oct 25 Eaton Corp said it expects its
markets to grow between 3 and 4 percent in 2014 after the
electrical and hydraulics systems maker reported strong
third-quarter bookings that continued into October.
Shares of the diversified manufacturer rose as much as 6
percent in afternoon trading even as the company cut its market
growth forecast for this year.
"A positive Europe, a slowly growing US, a strong Latin
America, and a stabilizing Asia is a lot better than what we
looked at in 2013," Chief Executive Alexander Cutler said of the
coming year in a post-earnings call.
Cutler said he was positive that current orders bode well
for the fourth quarter and the first half of next year.
"It's not too far off from where the Street is now,"
Jefferies & Co analyst Steve Volkmann said.
"I think it is a reasonable start. It is a little
conservative, because the order activity that they just reported
is above those levels."
Bookings at three of its businesses - electrical products
and systems and services, hydraulics and aerospace - were up in
the third quarter.
Eaton cut the top end of its full-year profit forecast by 10
cents, citing weakness in the heavy-duty truck and hydraulic
The company, whose products range from truck transmissions
to aircraft fuel systems, said it expects its markets to be flat
in 2013, compared with its previous estimate of a 1 percent
Eaton said it expects an adjusted full-year profit of
between $4.05 and $4.15 per share, down from its previous
forecast of $4.05-$4.25 per share. Analysts had expected $4.18
The company's shares have gained almost 49 percent in the
last 12 months, outperforming the larger S&P 500 index's
20 percent gain in the same period.