Eaton Corporation (NYSE: ETN) manufactures electrical systems and components for fluid power systems for industrial, automotive and aerospace industries. While the stock market continues to gyrate, Eaton continues to post solid results quarter after quarter. 4Q2007 results proved no exception. Across the board, numbers are up. Net income increased 6% to $256 million, sales grew by 10% due to both acquisitions and organic growth. Operating earnings increased 7% to $269 million. The story is the same for FY 2007 results.

The bulk of Eaton's growth and profits for 2007 came from outside the U.S., which remains a weak market, particularly in the NAFTA truck segment, which declined 14%. To offset this decline, European medium-duty truck production increased 12% and Brazilian agricultural equipment, still a small market, increased 63%. Electrical and fluid power segments each posted sales increases of 17%. Operating profits in these segments increased by 17% and 37% respectively. Aerospace segment grew by 6%.

Eaton CEO Alexander Cutler forecasts overall revenue growth at 25% for 2008, due both to organic growth as well as continued acquisitions. Operating earnings per share for 2008 are forecast at $7.75-$8.25. With the stock price right around $80 per share, coupled with an annual dividend of $0.50 per share, conservative investors may wish to take a look at Eaton as a safe place to park money.