Truck and auto components maker Eaton Corp. said Thursday its fourth-quarter profit jumped 30% on stronger performance by its truck unit.
Eaton also said will boost its dividend by 17% and set a two-for-one stock split, both effective next month.
Fourth-quarter net income rose to $280 million, or $1.63 per share, from $211 million, or $1.25, a year earlier. Revenue rose 17% to 3.7 billion.
Its truck segment’s sales rose 17% in the quarter to $518 million. Truck markets rose 16%, with U.S. markets up 20% and non-U.S. markets up 14%. Truck operating profits were $66 million, up 29% from the previous fourth quarter.
“For 2011, we expect good market growth, driven by a sharp rebound in NAFTA Class 8 truck production” CEO Alexander Cutler said in a statement. “We anticipate our overall truck markets will grow 20%, with U.S. markets growing 40 percent and non-U.S. markets growing 7%.”
For all of 2010, Eaton’s profit more than doubled to $929 million, or $5.46 per share, from $383 million, or $2.27 per share the previous year.
Full-year sales rose 16% to $13.7 billion. Operating earnings were $956 million, more than double the $437 million in 2009.
Eaton also said it will boost its quarterly to 68 cents, from 58 cents per share, a 17% increase, payable Feb. 25 to shareholders of record as of Feb. 7.
Its board approved a two-for-one stock split, effective close-of-business Feb. 28, also for shareholders of record as of Feb. 7.
