UPDATE 2-Eaton posts profit and outlook above estimates

* Q3 shr $1.60 vs. $1.38 expected

* Q3 sales up 18 pct to $3.6 bln

* Raises 2010 EPS view to $5.45 to $5.55
(Adds details on segment performance)

NEW YORK, Oct 20 (BestGrowthStock) – Diversified manufacturer Eaton
Corp (ETN.N: ) reported much higher than expected quarterly
profit on Wednesday, led by international demand, and raised
its full-year profit forecast by 10 percent to above Wall
Street estimates.

Eaton’s third-quarter net earnings rose 39 percent to $268
million, or $1.57 per share, compared with $193 million, or
$1.14 per share, a year earlier.

Shares rose 2.8 percent to $85.78 in premarket trading.

Excluding acquisition charges, Eaton earned $1.60 per
share, 22 cents more than analysts had expected, according to
Thomson Reuters I/B/E/S.

Sales were up 18 percent to $3.6 billion, compared with
Wall Street forecasts for sales of $3.4 billion.

The maker of hydraulics, electrical control systems and
truck transmissions said its end-markets are rebounding faster
than expected, led by overseas markets. It forecast 2010
operating earnings of $5.45 per share to $5.55 per share, above
analyst estimates of $5.09 per share.

Eaton said weakness persisted in North American
nonresidential construction in the quarter, but was offset by
demand from industrial markets. European and Asian electrical
markets grew at a faster pace, the company said, and recent
acquisitions drove record margins at its electrical
international segment.

Only Eaton’s aerospace segment showed a sales decline in
the quarter, but Eaton said the commercial aerospace market is
starting to rebound.
(Reporting by Nick Zieminski; Editing by Derek Caney and
Gerald E. McCormick)

UPDATE 2-Eaton posts profit and outlook above estimates