Eaton Expects $1 Billion In Addtl Revenue From Stimulus Program
September 15 2009 - 3:03PM
Dow Jones News
Eaton Corp. (ETN) anticipates about $1 billion in additional
revenue over the next two years from U.S. government-sponsored
economic stimulus spending on energy modernization and efficiency
projects, Chairman and Chief Executive Alexander Cutler said
Tuesday.
Cutler expects about half of the revenue will come in 2010 with
the rest coming in 2011. The Cleveland-based company provides a
variety of products and services for the control and distribution
of electricity. The electrical sector accounted for 45% of Eaton's
$15.4 billion in revenue last year.
"There is a very big push to get government buildings energy
efficient," said Cutler during a J.P. Morgan investor conference in
New York City broadcast over the Internet.
Cutler said the government installations targeted for energy
usage upgrades include waste water treatment plants, public
schools, office buildings and housing on U.S. military bases.
The nearly $800 billion U.S. economic stimulus program approved
earlier this year has been criticized for not allocating enough
money to infrastructure construction and repairs to benefit
slumping U.S. manufacturers of capital equipment.
Eaton also makes hydraulic systems, transmissions and other
components used in automobiles, commercial trucks, construction
equipment and farm machinery. Eaton expects its overall end-market
sales to decline by 21% to 22% this year from 2008.
Cutler said he expects gradual improvement in demand in 2010 as
the global economy recovers.
"We think we'll see [Gross Domestic Product] go positive around
the world next year," he said. "That's a big change from what we've
seen in the last 18 months."
Eaton's stock was recently up 2.1% at $59.09 a share.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com