Eaton Raises 2012 EPS Outlook With Deal For Turkish Hose Maker

Eaton Corp. (ETN) raised its 2012 earnings forecast after announcing the acquisition of a hose manufacturer in Turkey.

The purchase of Polimer Kauçuk Sanayi ve Pazarlama A.S. will add about $225 million to Eaton's sales this year. The deal caused Eaton to raise its projected range of earnings per share on an operating basis by 5 cents to $4.20 to $4.60 per share, from the $4.15 to $4.55 per share forecast in January. With the integration costs for Polimer Kaucuk included, Eaton expects diluted earnings per share will increase by 3 cents to a range of $4.13 to $4.53 per share from $4.10 to $4.50 per share seen last month.

"We're really excited about the acquisition," said Chairman and Chief Executive Alexander Cutler during a presentation to analysts. "It's a company we've known for a long time."

Eaton expects the deal to close by April 30. Eaton did not disclose a purchase price for Polimer Kauçuk, which is headquartered near Istanbul and employs more than 2,100 people. The company, which had sales of $335 million in 2011, manufacturers hydraulic and industrial hoses under the SEL Hose brand name. The company's primary markets include the construction, mining and agricultural, petroleum and food and beverage industries.

Cutler said the company's exposure to developing overseas markets made it especially attractive to Cleveland-based Eaton, which aims to increases its sales outside of North America.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com

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