Eaton to lay off 1,100, close Scottish hydraulics plant
CLEVELAND (Jan. 23)—Eaton Corp. said it will layoff 1,100 employees in 2002, reflecting weak end markets and a depressed economy, Chief Executive Alexander Cutler said during a Jan. 21 conference call. The cuts will affect workers in industrial-controls, heavy-duty truck transmission production and corporate administration. Eaton also said it will close its Glenrothes, Scotland, hydraulic products manufacturing facility and layoff the plant's 72 workers. The firm is studying the closure of its Shelbyville, Tenn., factory which produces heavy-duty truck transmissions. The diversified manufacturer blamed slumping demand for industrial and aerospace products for its disappointing financial results. "2001 was an exceptionally challenging year, as market conditions declined all year long," Cutler said. "In this difficult operating environment, Eaton's operating results were bolstered by our early decisions to resize the corporation." The company's fourth-quarter net income fell 48 percent to $30 million, or 42 cents per share. Sales fell 13 percent to $1.7 billion from $1.95 billion the previous year.