More Chinese Orders for Eaton - Analyst Blog
September 26 2011 - 10:15AM
Zacks
Eaton Corporation (ETN) has been selected by
the leading Chinese construction machinery producer, XCMG Group, to
supply components for its first vibratory compactors with hydraulic
transmissions. This is Eaton’s first significant heavy-duty pump
and motor win in the China vibratory compactor platform, a
milestone for the company.
XCMG said each hydraulic transmission will equip an Eaton
hydrostatic heavy-duty variable pump and motor rated at peak
pressures of 6,960 psi.
The original equipment manufacturer’s decision to use
Shanghai-based Eaton Hydraulics Greater China’s pumps and motors
for its next-generation vibratory compactors comes from XCMG’s
satisfaction with Eaton pumps, steering units and valves installed
on other XCMG equipment.
Eaton won the business based on the power density of its
heavy-duty pumps and motors, as well as for its exacting global
alignment with XCMG’s parts supply requirements, which included
local manufacturing, multiple production sources for key hydraulic
components, application expertise and a global service network.
Eaton’s Hydraulics business is a worldwide leader in the design,
manufacture and marketing of a comprehensive line of reliable,
high-efficiency hydraulic systems and components for use in mobile
and stationary applications.
Second quarter 2011 results at Eaton’s Hydraulics business
segment impressed with sales rising 28% over the prior year to $728
million. Operating profits came in at $120 million, up 56% from the
corresponding quarter last year. Hydraulics markets grew 18%.
Segment bookings increased 20% in the second quarter.
Cleveland, Ohio-based diversified power management company Eaton
Corporation is a leading supplier of power accessories in the
aerospace and automotive industries and has customers in 150
countries. Eaton has 70,000 employees and reported sales of $13.7
billion in 2010.
Eaton Corporation currently retains a Zacks #3 Rank (short-term
Hold rating). We maintain our long-term Outperform rating on the
stock. The company competes with ITT Corporation
(ITT) and Parker Hannifin Corporation (PH).
EATON CORP (ETN): Free Stock Analysis Report
ITT CORP (ITT): Free Stock Analysis Report
PARKER HANNIFIN (PH): Free Stock Analysis Report
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