Ahead Of The Bell: Eaton Sales Outlook

HARTFORD, Conn. (AP) — Troubles in the auto industry could lead to reduced second-quarter revenue at manufacturer Eaton Corp., prompting at least one analyst to cut her profit estimates for the company.

Chief Executive Alexander M. Cutler told analysts at a conference Tuesday that the manufacturer of products ranging from car and truck transmissions to electrical circuit breakers could be $100 million less than the low end of Eaton's estimated revenue range of $3 billion to $3.1 billion for the second quarter.

He cited shutdowns of Chrysler and General Motors Co. plants "and the fact that we think Europe has not yet found a bottom."

"It's still mid-quarter, it's very hard to call these things, but that's our most up-to-date feel on likely revenues at this point," Cutler said.

Yvonne Varano, an analyst at Jefferies & Co., said in a note to investors that the possible $100 million drop in revenue is "more extensive than anticipated."

As a result, she said she is taking "a more conservative view" toward second-quarter revenue for the Cleveland company. Varano cut her second quarter profit estimate to 12 cents per share from 24 cents per share.