Friday, April 27, 2007

ayoff-weary Eaton hopeful demand is stabilizing


Cleveland-based Eaton Corp. hopes the worst is over for its Auburn, Ind., plant, which experienced heavy layoffs as the result of lower sales in the North American heavy-duty truck market.

Eaton has idled 113 employees since Oct. 31 -- including 18 as of March 30 -- but expects to be able to keep its hourly work force at 105.

"We can't predict the future behavior of the market," said Donald E. Alles, manager, global communications. "I can't say the worst is over or we're done laying off. It depends on business conditions."

Eaton is one of several Indiana auto-parts makers that have cut back employment in recent months.

The Auburn facility is part of Eaton's truck components clutch unit and is a maker of clutches and clutch systems for large, semi tractor-trailers.

Other clutch facilities are located in Concord, N.C.; Greenfield, Ind.; and San Luis Potosi, Mexico.
Eaton said Monday it expects a 3 percent to 4 percent sales decline in the industrial markets it serves. However, the company posted a 12.5 percent first-quarter profit gain on strong demand across its businesses and raised its full-year outlook.

It expects North American Class 8 truck production levels to begin to return to normal by year's end.

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