UPDATE: Eaton Adds 5,200 Compulsory Layoffs, Mum On Guidance
21 Janvier 2009 - 4:32PM
Dow Jones News
Eaton Corp. (ETN) said Wednesday that it will cut another 5,200
staff through compulsory layoffs amid a continuing slowdown in the
global manufacturing sector.
The U.S. diversified manufacturer cut 3,400 jobs last year and
said in December that it would take further actions expected to
generate pretax savings of $125 million by the end of 2009.
The announcement takes the cumulative cuts to 10% of its global
work force after new layoff notices were sent Tuesday, spokeswoman
Kelly Jasko said.
Further details such as the location of the cuts and any
potential restructuring charges may be announced with
fourth-quarter earnings Monday.
Eaton cut its guidance for the December quarter a second time
last month, warning that its October prediction for flat growth in
end markets was unlikely to be realized.
Eaton signaled that further actions on costs were likely early
in 2009 amid a slowdown in customer activity that started in late
November, focused in auto, truck and hydraulics operations. The
company's electrical and aerospace units also felt pressure.
The company said last month that it expects operating earnings
of $1 to $1.10 in the December quarter after cutting 70 cents from
guidance revised in October.
The change implies full-year net profits of $6.75 to $6.85
before exceptional items, versus a mean earnings view among
analysts of $6.83 a share.
Eaton shares rose 1% to $47.49 in early trading.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com
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