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Article: Eaton shares fall as high oil dims outlook for auto, aircraft business despite stronger 2Q
- Article from:
- AP Worldstream
- Article date:
- July 15, 2008
- Author:
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Shares of Eaton Corp. dropped more than 12 percent in midday trading Tuesday after the maker of aircraft, auto and truck parts warned that high oil prices will hinder its growth in the second half of 2008.
The news overshadowed a 35 percent earnings increase in the company's latest quarter.
Alexander M. Cutler, Eaton chairman and CEO, told analysts in a conference call the high oil prices are a drag on some of the company's businesses, such as aerospace and automotive.
He said customers' willingness to absorb surging energy costs began to falter in May.
"We saw a dramatic turndown in the North American retail sales for passenger cars. We saw flattening of ...