Eaton Cutting 475 Semiconductor Jobs

Eaton Corp. said it is cutting 475 workers in its semiconductor-making equipment operations and taking a third-quarter pretax charge of $42 million as it moves to cut costs. The Cleveland-based company said it will take additional charges of about $4 million in both the fourth quarter of 1998 and the first quarter of 1999 for the semiconductor unit. The company, which also makes auto parts, said earlier this month that it expects the semiconductor equipment unit to lose $80 million in 1998, contrasted with a profit of about $30 million last year. Eaton said the third-quarter charge will lower earnings by 38 cents a diluted share. Analysts were expecting $1.25. It was expected to earn $1.25 a share, the average estimate of analysts polled by First Call Corp. Eaton shares rose 6 cents to close at $65.38 on the New York Stock Exchange.