The expanding global economy pushed diversified manufacturer Eaton Corp. back to a profit in the first quarter, the company reported on April 20. CEO Alexander M. Cutler said Eaton's "newly reset cost structure" also helped the company to "realize attractive incremental margins."

The Cleveland company makes hydraulics and electrical equipment used by manufacturers in a variety of industries.

In a conference call with analysts, Cutler highlighted the "enormous change" in the improving automotive segment, where first-quarter sales of $374 million were up 39% from the same period last year.

The segment had an operating profit of $42 million, compared with a loss of $45 million in the first three months of 2009.

"It's quite a year of recovery," Cutler said.

Eaton earned $155 million, or 91 cents per share, in the three months ended March 31, versus a loss of $50 million, or 30 cents per share, a year earlier amid the deepening recession.

Sales rose 10% to $3.1 billion from $2.8 billion a year earlier. Half the increase came from higher foreign exchange rates.

Both the revenue and adjusted earning per share figures topped Wall Street estimates.

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