(Bloomberg) -- Eaton Corp., the Cleveland-based maker of electricity meters and vehicle transmissions, raised its full-year forecast after posting second-quarter profit that beat analysts' estimates as demand for auto parts increased.
Net income rose to $226 million, or $1.33 a share, from $29 million, or 17 cents, a year earlier, the company said. Revenue climbed 16 percent to $3.38 billion.
Sales of car and truck parts increased for the third straight quarter from year-ago periods as the automobile industry ramped up production from the low levels set in early 2009. Eaton Chief Executive Officer Sandy Cutler today projected end markets would expand 8 percent in 2010.
"As we survey our end markets, the year is shaping up to be better than we had forecast in April," Eaton CEO Alexander M. Cutler said.
Excluding some items, Eaton said its profit was $1.36 a share. Analysts projected adjusted profit of $1.17 a share, according to an average of 19 estimates compiled by Bloomberg, on sales of $3.25 billion.
Eaton said full year operating profit will be $4.90 to $5.10 a share. Eaton in April forecast 2010 profit excluding some items of $4.30 to $4.60 a share.
The company's quarterly dividend was increased from 50 cents per share to 58 cents.
Sales from the Electrical Americas unit, the company's biggest business, rose 1.5 percent to $894 million for the first increase since the first quarter of 2009. The unit makes circuit breakers, power-distribution systems, meters and backup-power equipment.
The company also makes engine valves and superchargers for cars, transmissions and clutches for trucks and hybrid power systems for vehicles used by United Parcel Service Inc.