Eaton signs two deals in South America

Eaton Corp. has signed two eight-year agreements in South America that are expected to generate more than $190 million in additional truck sales at the Eaton transmission facility in Valinhos, Sao Paulo, Brazil. Volvo Trucks has agreed to have Eaton begin manufacturing Volvo heavy-duty transmissions for the South American market. Total sales are estimated at $112 million. Eaton will manufacture and deliver 100% of the Volvo transmissions that will be needed to meet production requirements in the South American market. Deliveries are scheduled to begin in October 2004. In a separate agreement, which will begin in 2003, Eaton will manufacture and deliver transmissions for AGCO and its four-wheel agricultural tractor project, known as the Buccaneer. Total sales are estimated to be $80 million.