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Eaton Receives $500 Million Contract From General Motors

Eaton

(ETN)

received a $500 million, multiyear contract from

General Motors

(GM)

to supply the automaker with an advanced powertrain technology for an undisclosed future program.

The technology is aimed at improving fuel economy without sacrificing power and performance. Eaton, a maker of parts and components for a variety of vehicles, said it has been focusing its automotive strategy and resources on fuel economy, safety and environmental impact.

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Last week

Goldman Sachs

raised its 2001 earnings estimates for some automakers and their suppliers, even though

January sales reports from the Big Three automakers showed a dropoff from last year.

On Jan. 23, Goldman lowered its 2001 estimate on Eaton right after the company's fourth-quarter earnings didn't live up to Wall Street's expectations.

Shares of Eaton gained 63 cents, or 0.9%, to $69.50 in recent

New York Stock Exchange

trading, while GM rose 79 cents, or 1.4%, to $56.79.