Eaton Cuts ཅ Guidance

Eaton Corp. (ETN) pulled back on its 2009 earnings guidance once again after posting a smaller-than-expected first-quarter loss.

Shares are down more than 10% today. Volume is at 2.4 million, slightly higher than the average at 2.2 million.

The company now expects operating earnings between $2.50 and $3, for the year. Analysts have been expecting $3.48, which was lowered from $3.61 a month ago. During this period, 5 out of 18 covering analysts pulled back on expectations.

Eaton indicated that the economic conditions in the US and Western Europe will not begin to recover until next year. It sees continued declines in the auto, aerospace and hydraulics markets in 2009.

Eaton's loss for the first quarter, excluding items, came in at 22 cents per share, 3 cents narrower than the consensus. Sales dipped 20% to $2.8 billion.

Eaton is currently a Zacks #3 Rank ("Hold") company.

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