While overall growth is slowing, Eaton's fundamentals in many areas of the world, including Europe, China and the U.S., are improving, with next year looking to far exceed the growth of this year, Cutler said. He noted that Eaton's margins have been expanding; when non-residential contraction, which accounts for 30% of Eaton's revenue, begins to recover, the company's profits will immediately reflect that. Cramer said he's still a believer in Eaton's potential, even if that potential may not be realized over the next couple of months. ETN is a holding in Cramer's charitable trust, Action Alerts PLUS .
Craft Beer for the Cookout
For the next installment of "Cramer's Cookouts," Cramer continued his look into the beer industry by taking the show outside for a special interview with Steve Hindy, co-founder and president of the privately-held Brooklyn Brewery, a hot player in the ever-growing craft beer segment. Hindy said Brooklyn Brewery has been around for 25 years, and after many years of competing with the big boys, craft beers are now almost on par with imports when it comes to market share. He said smaller breweries are no strangers to fighting against the giants in the industry and they have the advantage since craft beers just can't be made at a scale that would move the needle for the largest of brewers. How are craft beers able to win? Hindy said by focusing on their brands and adapting to the changing tastes of the American consumer. He explained that tastes change all the time. It happened with ice cream, it happened with coffee and now it's happening with beers. In fact, beer consumption overall has declined big over the past few years, said Hindy, yet, at the same time the industry now supports 2,500 individual breweries. Will increased competition kill off many craft brewers? Hindy thinks not. He said that he feels our country could easily support up to 4,000 breweries as long as they all offered quality products and focused on individual tastes.