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Eaton

Company

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Assets

+ Eaton

Eaton is the company providing solutions for management of energy. The company proposes to customers energy efficient solutions for management of electrotechnical, hydraulic and mechanical energy. The staff of Eaton makes 101,000 employees. The company performs sales in more than 175 countries of the world

For the beginning of 2014:

  • The headquarters to Dublin (Ireland)
  • Regional headquarters: Shanghai (China), Walrus (Switzerland), Mexico City (Mexico); Cleveland (USA)
  • The centers of innovations in the USA, China, India, the Czech Republic;
  • Clients more than in 150 countries
  • About 102,000 employees worldwide;
  • Chairman of the board and Chief executive officer: Alexander M. Katler (Alexander M. Cutler).

Activities

Eaton is one of world leaders in equipment manufacturing for:

  • quality assurances, distributions and managements of power supply;
  • hydraulic components for industrial and mobile applications;
  • fuel, hydraulic and pneumatic systems for military and civil aviation;
  • the component parts providing improvement of utilization properties, economy of fuel and safety of cars and commercial transport.

Electrotechnical sector

Proposes the equipment and solutions on five directions integrated by the general purpose - management of the electric power:

  • Providing qualitative power supply
  • Start-up and protection of electric motors
  • Distribution of energy
  • Automation
  • Complete solutions in the field of power supply

Industrial sector

Integrates in itself three directions of business of the company:

  • Hydraulics Group: control systems, fluid supply, filterings
  • Aerospace Group: hydraulic equipment, fuel systems, pipeline systems, electrical, touch equipment and control instrumentation
  • Vehicle Group: automatic and mechanical

transmissions, systems of the drive

  • and other equipment providing rational consumption of fuel and safety of commercial, agricultural and cargo transport.

Performance Indicators

2019: Revenue — $21.39 billion, profit — $2.21 billion

In 2019 Eaton gained $21.39 billion that there is a little less indicator of year prescription in $21.61 billion. The direction of electrical systems and services in which turnover rose from $6.02 billion to $6.29 billion became the main driver of revenue growth.

In a segment of electric products annual revenues increased too, but are insignificant — from $7.12 billion to $7.15 billion. The volume of the business connected with release of hydraulic components in 2019 was $2.55 billion, having decreased with $2.76 billion in the 2018th.

Eaton gained $21.39 billion that there is a little less indicator of year prescription in $21.61 billion
Eaton gained $21.39 billion that there is a little less indicator of year prescription in $21.61 billion

In the direction of automobile solutions of sale of Eaton fell from $3.49 billion in 2018 to $3.04 billion a year later. The division of eMobility (is responsible for creation of solutions for electric vehicles) completed 2019 with turnover in the amount of $321 million that is $1 million more, than the previous year.

At the end of 2019 Eaton got the net profit equal to $2.21 billion. These are slightly more profits for previous year ($2.15 billion).

The highest profit ($1.39 billion) appeared in the direction of electric products. Profit was measured in the 2018th by $1.31 billion here.

In division on release of electrical systems and services profit exceeded $1 billion against $896 million in 2018. The company earned $286 million profit from sale of hydraulic solutions that exceeds the profit of year prescription in $370 million.

In space business profit increased from $398 million in 2018 to $495 million in the 2019th. The profit indicator in automobile business was reduced during this time — from $611 million to $460 million. At last, in the direction the profit of eMobility at the end of 2019 was $17 million, having reduced almost three times year on year.

In the financial statement of Eaton it is also noted that in 2019 the company registered a record cash flow from operations — $3.5 billion. And the profit of the company without the expense accounting on acquisitions and department of assets appeared above own expectations.[1]

Business of Eaton in Russia

  • Eaton works in Russia from the moment of acquisition in 2004 of the Powerware company which had representation in Moscow;
  • In 2007 the line of the Eaton UPS was replenished with single-phase products of MGE Office Protection Systems known as the Pulsar series now;
  • In 2008 acquisition and integration with Moeller Group company that provided access to new segments of the electrotechnical market, expansion of sales channels, an opportunity to offer partners and clients complete solutions took place;
  • On October 1, 2009 in Moscow opening of corporate office Eaton took place. From this point all directions of business are presented at the Russian market;
  • On June 16, 2010 Anufriyev Igor was appointed to the position of the CEO of Eton LLC;
  • Today the Eaton company is provided to Volga region, Northwest and Central regions. In the nearest future opening of offices in the Siberian and Ural Federal districts is planned.

2018: Elena Mironova is the CEO of Eaton in Russia and Kazakhstan

On October 4, 2018 the Eaton company announced Elena Mironova's appointment to a position of the CEO of the company in Russia and Kazakhstan. Read more here.

2013: Business of Eaton in Russia grew by 2.5 times

From 2010 to 2013 sales of Eaton in Russia increased by 2.5 times, the CEO of local office of the company Igor Anufriyev in November, 2013 [[Anufriyev Igor|]] told TAdviser. The big share in sales pattern of the Russian office Eaton, according to him, is occupied by the electrotechnical sector where approximately in an equal ratio the Qualitative Power Supply and Distribution of Energy directions develop.

Good dynamics of sales drivers of growth in both cases different show both the electrotechnical sector, and industrial, at the same time, Igor Anufriyev notes. In electrical equipment, in particular, the company receives good return from expansion of a partner network and synergy of two directions – solutions for quality and distribution of energy.

In the market of the UPS relating to the electrotechnical sector, Eaton in Russia holds positions in top-3 suppliers. The CEO of the Russian office of the company at the same time recognizes that he was 2013 difficult for IT market in general, "generally because of reduction of public finance and freezing of many infrastructure projects".

The largest projects in an UPS segment in Russia for the last year in the company cite deliveries of large batches of the Eaton UPS for Olympic venues in Sochi and for telecom industry as an example: in particular, on one of objects of the Russian operator of digital television of Tricolor TV.

As for the industrial sector, the hydraulic division, in particular, also "accrues" partners in the field of distribution and purchases local OEM of clients, Igor Anufriyev says, citing as an example cooperation with the largest Russian player of the market of the agricultural Rostselmash equipment to which the company delivers hydrotransmission on their combines to Akros and the Vector.

Eaton in Russia is going to expand considerably network of the distributors working in the field of electrical equipment
Eaton in Russia is going to expand considerably network of the distributors working in the field of electrical equipment

"In other directions, space and motor transportation, the company moves according to projects which, in view of specifics of business, have more long-term character, he adds. For example, at the beginning of 2013 the company signed the development contract and delivery of the hydraulic equipment for the new passenger MC21 airplane which prepares for release by Irkut corporation", - Igor Anufriyev tells.

In absolute measures revenue in Russia in Eaton is not opened, however in the company spoken about plans to increase the current turnover in the country by $ dollars 200 million by 2016 Igor Anufriyev notes that implementation of these plans will be promoted in many respects by intensive development of the electrotechnical sector: by the designated year integration of Cooper company will be fully completed that will allow Eaton to propose to clients more complete and effective solutions.

"The industrial sector, according to our forecasts, will develop the advancing rates. In the next plans – localization of production in the autocomponent, hydraulic and space directions of business, - he adds. - One more factor promoting our growth in Russia – a boom of construction of DPC which market is not saturated yet".

Increase in growth rates will be reached, including, and due to considerable expansion of network of the distributors working in the field of electrical equipment. For the end of 2013 the company in Russia has more than 140 service partners in the Qualitative Power Supply direction, more than 250 IT partner registered in the Eaton Power Advantage program and in total more than 50 partners and distributors in the Distribution of Energy direction.

According to the CEO of Eaton in Russia, as of November, 2013 at local office of the company about 90 specialists work. For the last year the command increased by 30%, and in Eaton predict its further growth, including due to regional development.

2011

The Russian office of Eaton company in the 2011th year continued steady two-digit growth, having exceeded the sales plan for 11%.

2010

In 2010 sales grew by 63%, and in eight months of the current year – for 45%. In the forthcoming five years it is going to increase business of Eaton by 13-14% a year. This volume will consist of the natural growth of the final markets (approximately for 7% a year), the advancing growth of the company by 50% in relation to the market (3-4 more % per annum) and growth due to merges and absorption (2-4%, and it also expansion of competences of the company).

75-80% of sales of Eaton in Russia are provided by the electrotechnical sector, however the expected advancing development of other directions should balance all businesses of the company. So, for example, Eaton proposes interesting solutions on a joint of the electrotechnical and hydraulic directions which will move ahead also in Russia.

In the Russian market the electrotechnical sector of Eaton corporation offers:

  • The Powerware series Eaton UPS (earlier were issued under the name of Powerware)
  • The Pulsar series Eaton UPS (earlier were issued under the name of MGE Office Protection Systems)
  • The Eaton E Series UPS (earlier were issued under the name of Santak)
  • Moeller products

The Russian office concentrated attention on development of the complete solution for DPCs which includes the UPS, the equipment of medium and low tension. In the nearest future the offer of Eaton for DPCs will be expanded management systems for air flows. These solutions are included into Wright Line product line, - the company purchased by Eaton in 2010.

Special attention is going to be paid to promotion to regions. Offices in Northwest work, Central and the Volga Federal District, and until the end of 2011 full-fledged offices it is going to create in all federal districts of the country. In November, 2011 "The university center Eaton" will be open. Unlike former training center, it will have modern infrastructure and on its base will pass not only theoretical, but also practical lessons, and the number of listeners will double.

Business of Eaton in Kazakhstaye

The Russian office of Eaton company is responsible for Kazakhstan since 2015. Earlier the Czech office Eaton was responsible for business of the company in this region.

History

2020: Purchase of the developer of an electrical equipment for data centers of Power Distribution

At the beginning of February, 2020 the producer of uninterruptible power supply units Eaton announced Power Distribution acquisition, but did not begin to set the price of the transaction, as well as other agreement details. It is reported only that to execute all formalities concerning Power Distribution sale it is planned in the first quarter 2020. At first regulators should approve the transaction. Read more here.

2019: Purchase of 82.275% of shares of the manufacture of the electrotechnical equipment of Ulusoy Elektrik for $214 million

At the end of January, 2019 Eaton announced purchase of a controlling stake of the producer of the electrotechnical equipment Ulusoy Elektrik for the purpose of expansion of production capacities abroad and improvements of the power distribution systems. Read more here.

2018: Revenue — $21.61 billion, profit — $2.15 billion

2018 Eaton completed with revenue in the amount of $21.61 billion against $20.4 billion the previous year. The greatest income still falls on electric products (including the UPS): their sales in 2018 reached $7.12 billion whereas in the 2017th — $6.92 billion.

Financial performance of Eaton
Financial performance of Eaton

In the "Electrical Systems and Services" direction turnover at the level of $6.02 billion is registered that exceeds an indicator of year prescription in $5.67 billion.

In division of hydraulic systems annual revenues appeared from $2.47 billion to $2.76 billion. Sales of space products increased from $1.74 billion to $1.9 billion, and implementation of automobile technologies increased from $3.33 billion to $3.49 billion.

As a part of Eaton the division of eMobility specializing in development of solutions for electric vehicles also works. At the end of 2018 turnover reached $320 million here, having increased with $283 million in the 2017th. In 2018 the company announced plans to invest $500 million in this business within five years and to begin to earn from it $2-4 billion by 2030.

At the end of 2018 Eaton got $2.15 billion net profit whereas in the 2017th it made $2.99 billion.

Profit in division of electric products grew from $1.23 billion to $1.31 billion, in division of electrical systems and services — from $770 million to $896 million. In the direction of hydraulic solutions profit was equal to $370 million in 2018 against $288 million the previous year.

In a segment of space technologies profit raised from $332 million in 2017 to $398 million a year later. Automobile business brought the companies of $611 million profit, and electromobile — $44 million against $541 million and $50 million respectively.

In the financial statement of Eaton it is noted that increase in prices for products completely compensated a negative impact increase in duties and inflation.[2]

2016: Fall of income because of restructuring

In 2016 revenue of Eaton was reduced by 5%. A little also net profit fell. The restructuring started by the company affected.

Sales of Eaton in 2016 made $19.7 billion against $20.9 billion the previous year. Net profit decreased from 1.98 to 1.93 billion dollars.

«
We could solve an insurance number of questions over which we worked hard years  — the president, the chief operating officer and the board member of Eaton company Craig Arnold says. —  Totally income from an insurance activity was about $70 million. Proceeding from it, we decided to invest additional $70 million in the program for restructuring. As a result restructuring costs in the fourth quarter made $90 million, and in a year — $211 million.
»

Eaton revenue in 2016 dropped by 5%
Eaton revenue in 2016 dropped by 5%

Sales in a segment of electrotechnical products at Eaton slightly decreased in 2016 — to $6.96 billion. In the countries of Europe and the Middle East the situation is stable. In the USA growth was caused by increase in number of orders for products and service solutions for residential objects and at lighting, in the countries of the Pacific Rim gain in a segment of solutions for providing qualitative power supply is recorded, Arnold reported.

Eaton revenue in division "Electrotechnical systems and services"  at the end of 2016 reached $5.7 billion against $5.9 billion in the 2015th. Operating profit decreased from 776 to 711 million dollars because of the mentioned expenses on restructuring here.

Income fell in division of hydraulic systems from 2.5 to 2.2 billion dollars. In motor transportation business of sale were equal $3.2 billion in 2016 whereas the previous year they were measured by $3.68 billion.

«
Production of trucks of class 8 in North America was 228 thousand pieces in 2016 that exceeded our expectations a little. Worldwide the automobile markets last year were stable — Arnold noted.[3]
»

2015: Results of the second quarter

In 2015 the sales volume of Eaton company was $20.9 billion.

On August 10, 2015 the Eaton company announced achievement of level of a net profit per share of $1.16. Growth in the published reporting period was 5%[4].

According to the management of the company, growth of operating profit is in the second quarter caused by high marginality of operating profit and strict expense control, the indicator is corrected by a negative impact of foreign exchange rate in the amount of 5%. Without a negative impact of foreign exchange rate operating profit on an action could increase by 10%".

Revenue was a little lower expected in connection with weaker positions of the majority of the markets. Sales in the second quarter dropped by 7%: recession in 6% is recorded because of a negative impact of currency rate and 1% falling of organic sales.

The company expects growth of operating profit on an action in the third quarter 2015 in the amount of $1 up to $1.10. Taking into account decrease in growth of organic sales and measures for restructuring, operating profit will fluctuate between $4.40 and $4.60 that is 6% lower, than was predicted earlier. 3% from these 6% are caused by cost value of the restructuring program.

2014: Sales growth for 3%

Sales in the second quarter made 2014 $5.8 billion that is 3% higher in comparison with last year. Operating profit for the second quarter 2014, excepting tax costs in the amount of $37 million for integration of recent acquisitions and also contingencies and profit, was $529 million that for 2% exceeds result of the same period of 2013.

Alexander M. Katler, the chairman of the board and the chief executive officer of Eaton company, noted:

"Our results in the second quarter 2014, taking into account contingencies, appeared above the predicted average value. As we also expected, the sales level for this period grew by 3%, and in the first quarter 2014 – for 4%. Completely also the general segment margin which costs in the amount of $39 million for restructuring in the Industrial sector affected met our expectations. The high marginality was shown by Hydraulic, Space and Motor transportation divisions and also the Electrotechnical Products segment. Weaker marginality was shown by the "Electrotechnical Systems and Services" segment.
"A number of unplanned circumstances also had an impact on the profit of the company during this period, – Mr. Katler told. – First, we closed the deals on sale of two small space enterprises which cost before payment of taxes was $156 million. Secondly, we settled two long-term lawsuits, with Meritor company and with Triumph company and also the corresponding judicial proceedings that cost us $644 million before payment of taxes".

Sales of the Electrotechnical Products segment made $1.8 billion that is 4% higher, than in 2013 while operating profit was $300 million. Without the expense accounting on acquisitions and their integration in the amount of $12 million in a quarter, it was $312 million that is 10% higher, than in the second quarter than 2013.

Sales of the "Electrotechnical Systems and Services" segment made $1.6 billion, similar to an indicator of 2013. The main sales grew by 1% that was compensated by decrease by 1% at conversion of currency. Operating profit of a segment was $194 million.

The sales volume of the Space sector was equal to $486 million that for 9% exceeds results of the same period of 2013. Operating profit in the second quarter increased by 3% in comparison with 2013 and was $69 million. These indicators already include $2 million costs for restructuring within a quarter.

"We are happy with the total amount of orders of Electrotechnical and Space businesses, – Mr. Katler noted. – We still predict that in general in 2014 our final markets will grow by 3%".

2013

Sales volumes of the company in 2013 were record $22.0 billion that is 35% higher, than in 2012. Operating profit, less $163 million for integration of recent acquisitions, reached $2.0 billion and exceeded a last year's indicator for 42%. Operating profit by an action increased to $4:13 a.m. that is 5% higher than an indicator of 2012. The cash flow from operations in 2013 made $2.3 billion that is 37% higher, than in 2012.

"We expect that in 2014 our markets will grow by 3%, - Alexander M. Katler, the chairman of the board and the chief executive officer of Eaton company noted. – Also we believe that in 2014 operating profit on an action will reach record levels again. By our preliminary estimates, in 1 quarter it will make $0.95 - $1.05, without the expense accounting on integration of our recent acquisitions in the amount of $76 million".

"In general, according to our forecasts, in 2014 operating profit on an action will be $4.50 - $4.90, without the cost accounting on integration of our acquisitions which are estimated at $168 million. This forecast does not include profit on sale of two space structural divisions, - Mr. Katler added. – On average operating profit on an action in 2014 can grow by 14%".

2012

In January, 2012 Eaton gave the forecast of development of the company for 2012. Though perspectives of world economy in 2012 remain indefinite, generally in connection with problems of a public debt of the countries of the Eurozone, we are convinced that with high probability will be 2012 year of steady growth for the world markets at which we work.

"According to us in 2012 our markets will grow by 5%, at the same time the market of the USA will show a little higher growth rates, than foreign markets. We expect to outstrip growth of our sales markets in 2012 approximately by 320 million dollars", - Katler says. "In 2012 we expect receipt of an additional profit in the amount of 90 million US dollars at the expense of the disaggregation of acquired assets completed in 2011. It is expected that changes of currency rates in 2012 will lead to reduction of our profit for about 550 million US dollars. In general, we expect that this year our profit will grow by 4 percent in comparison with 2011".

"We consider that operating profit on an action in 2012 will be record again", - Katler says. "By our estimates, operating profit on an action for the first quarter, excepting costs for integration of our recent acquisitions in the amount of about 0.01 US dollars, will be from 0.80 to 0.90 US dollars. We expect that for all 2012 operating profit on an action, excepting costs for integration of recent acquisitions in the amount of about 0.05 US dollars, will be from 4.15 to 4.55 US dollars. Taking into account these forecasts our operating profit on an action in 2012 will show growth within 5-15 percent".

"In the light of good results of the achieved in 2011 and our forecasts for 2012, we increase our quarter dividends for 12 percent, raising quarter dividends from 0.34 to 0.38 US dollars for an action", - Katler says.

2011: Sales growth for 17% to $16 billion

In 2011 sales volume reached 16 billion dollars that is 17% more than in 2010. Net income was 1.35 billion that is 45% more, than in 2010, and the net profit per share in the amount of 3.93 dollar USA for 44 percent exceeded an indicator of 2010.

Operating profit in 2011 was 1.36 billion US dollars that is 42 percent higher than an indicator of 2010. Operating profit counting on one action in 2011 was 3.96 US dollars that is 41 percent more, than in 2010.

Chairman of the board and Chief executive officer of Eaton corporation Alexander M. Katler:

"Increase in sales volume by 17 percent in 2011 reflects steady growth in spite of the fact that within a year the world economy was subject to strong fluctuations", - Katler says. "During 2011 we raised three times our forecast for profit as market indicators exceeded our expectations for the beginning of year".

"Giving overall assessment of 2011, I can tell with confidence that for us it was record year on many indicators", - Katler believes. "Sales volume for the first time exceeded 16 billion dollars, our segmented operating profit grew by one and a half percent up to 14.2 percent, our sales in developing countries reached 27% of total amount, and operating profit on an action for 15 percent beat our previous record.

In 2011 we completed nine acquisitions from which gross income made about 320 million dollars in 2011.

During this period the staff of Eaton totals 70,000 employees and the company performs sales more than in 150 countries of the world.

2010: Revenue of $13.7 billion

Sales volume in 2010 was 13.7 billion dollars USA.

1911: Foundation of the company

The Eaton company is founded in 1911 by J. O. Eton (J.O. Eaton);

Notes


Stock price dynamics

Ticker company on the exchange: NYSE:ETN