Eaton’s Fourth-Quarter Income Declines

Vehicle parts manufacturer Eaton Corp. said Monday its fourth-quarter profit fell to $163 million, or 98 cents per share, from $256 million, or $1.71, a year earlier.

Sales rose 3% to $3.5 billion and operating earnings fell 33% to $180 million, Eaton said in a statement.

Its truck segment’s sales fell 17% to $439 million from a year earlier. Truck markets in the fourth quarter declined 10%, with U.S. markets down 5% and non-U.S. markets down 16%.

Truck segment operating profits were $41 million, down 49% from a year earlier, the company said.

For the full year, its overall net income rose 6% to $1.06 billion, while income per share was $6.52, down 1% from a year earlier. Sales rose 18% to a record $15.4 billion.

In October, the company had lowered its 2008 earnings-per-share guidance to $7.10 to $7.20, from a previous $7.20 to $7.50.

Eaton said last week it plans to cut 5,200 jobs worldwide, due to a slumping world economy.