Eaton preparing for stiff revenue drop

Eaton Corp. continues to take a beating from the auto industry and company is preparing for further struggles ahead.

Chief Executive Alexander M. Cutler told analysts at a recent conference that Eaton Corp., which manufactures a wide range of automotive components, could be facing $100 million less than the previous estimated revenue range of $3 billion to $3.1 billion for the second quarter.

Cutler pointed to plant shutdowns at General Motors and Chrysler, along with “the fact that we think Europe has not yet found a bottom,” said Cutler.

“It’s still mid-quarter, it’s very hard to call these things, but that’s our most up-to-date feel on likely revenues at this point,” he said.