may have reported a drop in both third-quarter profit and sales, but the diversified manufacturer is seeing early signs of recovery.
In fact, Eaton is so optimistic that it raised its full-year guidance, sending shares jumping 5.4% to $63.70 in pre-market trading.
During the quarter, the company, which makes hydraulics and exhaust valves, earned $193 million, or $1.14 a share, down 39% from $318 million, or $1.87 in the year-ago period.
Excluding costs related to an acquisition, the company actually earned $1.21 a share, surpassing the 92 cents a share analysts expected.
Sales tumbled 26% to $3.03 billion
Eaton said global auto production is improving, partially from the Cash for Clunkers program. The demand for heavy-duty trucks is also slowly turning.
Looking ahead, the company expects full-year profit between $2.40 and $2.50 a share, up from its prior guidance of $2 to $2.20 a share.
For the fourth quarter, Eaton said earnings should be in the range of $1.15 to $1.25 a share, above the consensus of $1.06.
-- Reported by Jeanine Poggi in New York
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