Create a free Manufacturing.net account to continue

Eaton Says It Expects $1B From Stimulus Bill

Electrical equipment maker expects about $1 billion in revenue from the U.S. economic stimulus bill over the next two years, the company's top executive said Tuesday.

PITTSBURGH (AP) -- Eaton Corp., which makes electrical equipment, expects about $1 billion in revenue from the U.S. economic stimulus bill over the next two years, the company's top executive said Tuesday.

Alexander Cutler, Eaton's chairman and chief executive, said the company was "very much on track" to book about $500 million in revenue in 2010 and roughly the same amount in 2011 as the government spends money to improve energy efficiency in buildings.

Making government buildings more energy efficient is one of "the major, major drivers in terms of where money's being spent" in the bill, he said in remarks broadcast over the Internet from a JPMorgan conference in New York.

"We expect to capture approximately $1 billion of incremental revenue from the U.S. stimulus bill," Cutler said. "Huge dollars are being spent to improve the utilization of energy in government buildings. We're doing very well in that respect."

The Cleveland-based company, which also makes vehicles and parts for airplanes, discussed the expected revenue gains from the stimulus bill in May, he said. The $787 billion economic stimulus bill was approved by Congress in February.

Shares of Eaton rose $1.23, or 2 percent, to close at $59.08.