Eaton Corporation announced last week that it expects to fall short of economic expectations for the second quarter and the full fiscal year. The company said it would continue restructuring and work hard to size the company to current business conditions.

Eaton reports its second quarter earnings per share are expected to be 20 to 30 percent below the current analysts' consensus of $1.21 per share. The company also revised its expectation for full-year 2001 operating earnings to a range of $4.05 to $4.20 per share.

"We have now seen a sharp decline in virtually all of our North American markets except aerospace," Eaton Chairman and Chief Executive Officer Alexander Cutler said in a released statement. "And, while Eaton's sales have tracked at or above the trend of our markets, we have not been able to reduce structural costs as quickly as the decline in these businesses. Further, while we are hopeful that, in aggregate, we are seeing a bottoming in activity levels, there is no convincing evidence that our North American markets will rebound meaningfully before year-end."