Eaton

Eaton is a company providing energy management solutions. The company offers customers energy efficient solutions for electrical, hydraulic and mechanical energy management. Eaton has 101,000 employees. The company sells in more than 175 countries

At the beginning of 2014:

• Headquarters in Dublin, Ireland
• Regional headquarters: Shanghai (China), Walrus (Switzerland), Mexico City (Mexico); Cleveland (USA)
• Innovation Centers in the USA, China, India, Czech Republic;
• Customers in over 150 countries
• About 102,000 employees worldwide;
• Chairman of the Board and Chief Executive Officer: Alexander M. Cutler.

Areas of activity

Eaton is one of the world leaders in the production of equipment for:

• quality assurance, distribution and power management;
• Hydraulic components for industrial and mobile applications
• fuel, hydraulic and pneumatic systems for military and civil aviation;
• components providing improved operating characteristics, fuel economy and safety of passenger cars and commercial vehicles.

Electrical sector

It offers equipment and solutions in five areas, united by a common purpose - electricity management:

• Provision of high-quality power supply
• Start-up and protection of electric motors
• Energy distribution
• Automation
• Integrated Power Supply Solutions

Industrial sector

It combines three areas of the company's business:

• Hydraulic Group: control, liquid supply, filtration systems
• Aerospace Group: hydraulic equipment, fuel systems, pipeline systems, electrical, sensor equipment and instrumentation
• Vehicle Group: automatic and mechanical

transmissions, drive systems

• and other equipment ensuring rational fuel consumption and safety of commercial, agricultural and freight transport.

Performance indicators

2021: Revenue up 10% thanks to UPS and other electrical engineering

Eaton's revenue at the end of 2021 increased by 10% and reached $19.628 billion, while a year earlier the figure was $17.86 billion.

Revenue in the division of electrical solutions (this includes UPS) outside the United States in 2021 reached $5.52 billion against $4.7 billion a year earlier. Revenues of the division in the United States increased from $6.68 billion to $7.24 billion.

The volume of business associated with the production of hydraulic components in 2021 turned out to be $1.3 billion, decreasing from $1.84 billion in 2020. In the direction of automotive solutions, Eaton sales rose from $2.12 billion in 2020 to $2.6 billion a year later.

The eMobility division (responsible for creating solutions for electric vehicles) completed 2021 with a turnover of $343 million against $292 million a year earlier. In the segment of aerospace products (hydraulic, fuel and inertial systems for aircraft, as well as motion control and development technologies for aircraft engines), revenue in 2021 reached $2.64 billion, in 2020 the figure was $2.22 billion.

Eaton ended 2021 with a net profit of $2.15 billion, while in 2020 it was $1.14 billion.

The largest profit was registered in the direction of electric products sold on the American market - $1.5 billion at the end of 2021, while in 2020 the figure was $1.35 billion.. The profit from the implementation of such solutions worldwide (with the exception of the United States) amounted to $1.03 billion, while a year earlier the figure reached $750 million. In the units responsible for the production of hydraulic, aerospace and automotive solutions, the following profit indicators took place: $177 million, $580 million and $449 million, respectively. eMobility's business has become unprofitable - in 2021, losses here amounted to $29 million.^[1]

2020: Revenue - $17.86 billion, net profit - $1.41 billion

Eaton's revenue at the end of 2020 amounted to $17.86 billion, significantly decreasing (by 17%) compared to sales a year ago, which amounted to $21.39 billion.

Sales of electric products in the United States in 2020 fell to $6.68 billion from $8.18 billion a year earlier. In other countries combined, this unit showed a decrease in turnover from $5.17 billion to $4.7 billion.

The volume of business associated with the production of hydraulic components in 2020 turned out to be $1.84 billion, having decreased from $2.2 billion in 2019. In the direction of automotive solutions, Eaton sales also fell - from $3.04 billion in 2019 to $2.12 billion a year later.

The eMobility division (responsible for creating solutions for electric vehicles) completed 2020 with a turnover of $292 million against $321 million a year earlier. In the segment of aerospace products (hydraulic, fuel and inertial systems for aircraft, as well as motion control and development technologies for aircraft engines), revenue in 2020 reached $2.22 billion, which also fell short of a year ago ($2.48 billion).

Eaton ended 2020 with a net profit of $1.41 billion, while in 2019 such profits were much higher - $2.21 billion.

The largest profit was registered in the direction of electric products sold on the American market - $1.35 billion at the end of 2020. The profit from the implementation of such solutions worldwide (with the exception of the United States) amounted to $750 million, which is less than the profit of $897 million, which was in 2019. In the units responsible for the production of hydraulic, aerospace and automotive solutions, the following profit indicators took place: $186 million, $414 million and $243 million, respectively. eMobility's business has become unprofitable - in 2020, losses here amounted to $8 million.

Eaton 2020 Financial Statements

Eaton business in Russia

Eaton has been operating in Russia since the acquisition in 2004 of Powerware, which had a representative office in Moscow.

2019: Revenue growth by 27.8% to RUB 2.29 billion

At the end of 2019, Eaton (Eaton LLC) took 42nd place in TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 2,292,893 thousand rubles, which is 27.8% higher than in 2018.

2018

Revenue - 1.79 billion rubles.

Eaton's revenue (Eaton LLC) for 2018 amounted to 1,793,953 thousand rubles.

Elena Mironova - CEO of Eaton in Russia and Kazakhstan

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

2013: Eaton's business in Russia grew 2.5 times

From 2010 to 2013, Eaton sales in Russia increased 2.5 times, Igor Anufriev, General Director of the company's local office, told TAdviser in November 2013. A large share in the sales structure of Eaton's Russian office, according to him, is occupied by the electrical sector, where the areas of Quality Power Supply and Energy Distribution are developing approximately equally.

Both the electrical and industrial sectors demonstrate good sales dynamics, while the growth drivers in both cases are different, Igor Anufriev notes. In electrical engineering, in particular, the company receives a good return from the expansion of the partner network and the synergy of two areas - solutions for the quality and distribution of energy.

In the UPS market related to the electrical sector, Eaton in Russia holds positions in the top 3 suppliers. At the same time, the general director of the Russian office of the company admits that 2013 was not easy for the IT market as a whole, "mainly due to the reduction in state financing and the freezing of many infrastructure projects."

As an example of the largest projects in the UPS segment in Russia over the past year, the company cites the supply of large batches of Eaton UPS for Olympic facilities in Sochi and for the telecommunications industry: in particular, for one of the facilities of the Russian digital television operator Tricolor TV.

As for the industrial sector, the hydraulic division, in particular, is also "growing" by partners in the field of distribution and acquires local OEM clients, says Igor Anufriev, citing as an example cooperation with the largest Russian player in the market for agricultural equipment Rostselmash, to which the company supplies torque transfer to their harvesters Akros and Vector.

"In other areas, aerospace and motor transport, the company is moving in accordance with projects that, due to the specifics of the business, are longer-term, he adds. For example, in early 2013, the company signed a contract for the development and supply of hydraulic equipment for the new MC21 passenger aircraft, which is being prepared for production by Irkut Corporation, "says Igor Anufriev.

In absolute terms, Eaton does not disclose revenue in Russia, but the company is talking about plans to increase the current turnover in the country by $200 million dollars by 2016. Igor Anufriev notes that the implementation of these plans will largely contribute to the intensive development of the electrical sector: by the designated year, the company's integration will be fully completed, Cooper allowing Eaton to offer customers more complete and efficient solutions.

"The industrial sector, according to our forecasts, will develop at a faster pace. In the near future - the localization of production in auto-component, hydraulic and aerospace business areas, - he adds. "Another factor contributing to our growth in Russia is the boom in the construction of data centers, the market of which is not yet saturated."

The increase in growth rates will be achieved, among other things, due to a significant expansion of the network of distributors operating in the field of electrical engineering. At the end of 2013, the company in Russia has more than 140 service partners in the "Quality Power Supply" direction, more than 250 IT partners registered in the Eaton Power Advantage program, and a total of more than 50 partners and distributors in the "Energy Distribution" direction.

According to the CEO of Eaton in Russia, as of November 2013, about 90 specialists work in the local office of the company. Over the past year, the team has increased by 30%, and Eaton predicts its further growth, including through regional development.

2012

As of January 2012, Eaton is represented in the Volga region, North-West and Central regions. In the near future, it is planned to open offices in the Siberian and Ural Federal Districts.

2011

In 2011, the Russian office of Eaton continued its solid double-digit growth, exceeding its sales target by 11%.

2010

Sales growth of 63%

In 2010, sales increased by 63%, and in eight months of this year - by another 45%. In the next five years, it is planned to increase Eaton's business by 13-14% per year. This volume will consist of natural growth of end markets (by approximately 7% per year), ahead of the company's growth by 50% in relation to the market (another 3-4% per annum) and growth due to mergers and acquisitions (2-4%, and this is also an expansion of the company's competencies).

75-80% of Eaton sales in Russia are provided by the electrical sector, however, the expected advanced development of other areas should balance all the company's businesses. For example, Eaton offers interesting solutions at the junction of electrical and hydraulic directions, which will be promoted in Russia.

In the Russian market, the electrical sector of Eaton Corporation offers:

• Eaton Powerware Series UPSs (previously issued under the Powerware brand)
• Eaton Pulsar series UPSs (previously produced under the MGE Office Protection Systems brand)
• Eaton E Series UPS (previously issued under the Santak brand)
• Moeller Products

The Russian office focused on developing a comprehensive solution for data centers, which includes UPS, medium and low voltage equipment. In the near future, Eaton's offer for data centers will be expanded by air flow control systems. These solutions are part of the Wright Line, a company acquired by Eaton in 2010.

Special attention is planned to be paid to promotion to the regions. There are offices in the North-West, Central and Volga Federal District, and by the end of 2011 it is planned to create full-fledged offices in all federal districts of the country. In November 2011, the "Eaton University Center" will be opened. Unlike the previous training center, it will have a modern infrastructure and on its basis will be held not only theoretical, but also practical classes, and the number of students will double.

Appointment of Igor Anufriev to the post of general director of Eaton LLC

June 16, 2010 Anufriev Igor was appointed to the post of General Director of Eaton LLC.

2009: Opening of Eaton Corporate Office in Moscow

On October 1, 2009, the Eaton corporate office was opened in Moscow. From that moment on, all business areas are represented on the Russian market.

2008: Purchase and integration with Moeller Group

In 2008, the acquisition and integration with Moeller Group took place, which provided access to new segments of the electrical market, expansion of sales channels, the ability to offer partners and customers comprehensive solutions.

2007: Replenishment of UPS line with MGE Office Protection Systems products

In 2007, the Eaton UPS line was replenished with MGE Office Protection Systems single-phase products, currently known as the Pulsar series.

Eaton business in Kazakhstai

The Russian office of Eaton has been responsible for Kazakhstan since 2015. Previously, the Czech office of Eaton was responsible for the company's business in this region.

History

2025: An Eaton employee took offense at the dismissal and injected a virus into the servers. He stopped production and destroyed work accounts

A fired employee of Eaton Corporation injected a virus into the company's servers, which led to a halt in production and the destruction of work accounts. This became known in March 2025. A jury in Cleveland convicted software developer Davis Lou, who, disagreeing with the demotion, created and launched the malware. As a result of the attack in 2019, thousands of employees lost access to accounts, and production systems were paralyzed. Read more here.

2022: Purchase of electric vehicle component maker Royal Power Solutions for $600m

In early January 2022, Eaton Corporation bought Royal Power Solutions. The deal is valued at $600 million. The acquisition is expected to enable Eaton Corporation to improve the efficiency of the company's entire energy management business. Read more here.

2021

Tripp Lite acquisition plans for $1.65 billion

Electrical equipment maker Eaton is buying rival Tripp Lite, a supplier of UPS and data center equipment, for $1.65 billion, intending to significantly expand its portfolio in the power protection and peripheral computing market. This became known on January 29, 2021. Read more here.

2020: Power Distribution Data Center Electrical Equipment Developer Purchase

In early February 2020, uninterruptible power supply manufacturer Eaton announced the acquisition of Power Distribution, but did not name the value of the transaction, as well as other details of the agreement. It is only reported that all formalities regarding the sale of Power Distribution are planned in the first quarter of 2020. First, the deal must be approved by regulators. Read more here.

2019

Revenue - $21.39 billion, profit - $2.21 billion

In 2019, Eaton raised $21.39 billion, slightly less than the one-year-old figure of $21.61 billion. The main driver of income growth was the direction of electrical systems and services, the turnover of which rose from $6.02 billion to $6.29 billion.

In the segment of electric products, annual revenue also increased, but slightly - from $7.12 billion to $7.15 billion. The volume of business associated with the production of hydraulic components in 2019 amounted to $2.55 billion, decreasing from $2.76 billion in 2018.

In the direction of automotive solutions, Eaton sales fell from $3.49 billion in 2018 to $3.04 billion a year later. The eMobility division (responsible for creating solutions for electric vehicles) completed 2019 with a turnover of $321 million, which is $1 million more than a year earlier.

At the end of 2019, Eaton received a net profit of $2.21 billion. This is slightly more profit for the previous year ($2.15 billion).

The highest profit ($1.39 billion) was in the direction of electric products. In 2018, profit here was measured at $1.31 billion.

In the division for the production of electrical systems and services, profit exceeded $1 billion against $896 million in 2018. The company earned $286 million in profit on the sale of hydraulic solutions, which exceeds the profit of $370 million a year ago.

In the aerospace business, profit increased from $398 million in 2018 to $495 million in 2019. The profit indicator in the automotive business decreased during this time - from $611 million to $460 million. Finally, in the direction, eMobility's profit at the end of 2019 amounted to $17 million, having almost tripled year-on-year.

Eaton's financial report also notes that in 2019, the company registered a record operating cash flow of $3.5 billion. And the company's profit, excluding expenses for acquisitions and separation of assets, was above its own expectations.^[2]

Purchase of 82.275% stake in electrical equipment manufacturer Ulusoy Elektrik for $214 million

At the end of January 2019, Eaton announced the purchase of a controlling stake in electrical equipment manufacturer Ulusoy Elektrik with the aim of expanding production capacity abroad and improving its electricity distribution systems. Read more here.

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

Eaton completed 2018 with revenue of $21.61 billion against $20.4 billion a year earlier. The largest revenues still fall on electric products (including UPS): their sales in 2018 reached $7.12 billion, while in 2017 - $6.92 billion.

In the direction of "Electrical systems and services," the turnover was registered at $6.02 billion, which exceeds the one-year-old figure of $5.67 billion.

In the division of hydraulic systems, annual revenue appeared from $2.47 billion to $2.76 billion. Sales of aerospace products increased from $1.74 billion to $1.9 billion, and sales of automotive technologies increased from $3.33 billion to $3.49 billion.

Eaton also has an eMobility division specializing in developing solutions for electric vehicles. At the end of 2018, the turnover here reached $320 million, increasing from $283 million in 2017. In 2018, the company announced plans to invest $500 million in this business over five years and start earning $2-4 billion from it by 2030.

At the end of 2018, Eaton received $2.15 billion in net profit, while in 2017 it amounted to $2.99 billion.

Profit in the division of electrical products increased from $1.23 billion to $1.31 billion, in the 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 a year earlier.

In the aerospace technology segment, profits rose from $332 million in 2017 to $398 million a year later. The automotive business brought the company $611 million in profit, and the electric car - $44 million against $541 million and $50 million, respectively.

The financial report of Eaton notes that the rise in product prices fully offset the negative impact of the increase in duties and inflation.^[3]

2016: Falling revenues due to restructuring

In 2016, Eaton's revenue contracted by 5%. Net income also fell slightly. The restructuring launched by the company affected.

Eaton sales in 2016 amounted to $19.7 billion against $20.9 billion a year earlier. Net income decreased from $1.98 billion to $1.93 billion.

We were able to solve a number of insurance issues that we worked on for many years, "says Craig Arnold, President, Chief Operating Officer and Board Member of Eaton. - Total income from insurance activities amounted to approximately $70 million. Based on this, we decided to invest an additional $70 million in the restructuring program. As a result, restructuring costs in the fourth quarter amounted to $90 million, and for the year - $211 million.

Sales in the segment of electrical products at Eaton slightly decreased in 2016 - to $6.96 billion. In countries Europe and the Middle East, the situation is stable. USA The growth was due to an increase in the number of orders for products and service solutions for residential facilities and lighting, in the countries of the Asia-Pacific region, an increase was recorded in the segment of solutions for providing high-quality power supply, Arnold said.

Eaton's revenue in the Electrical Systems and Services division in 2016 reached $5.7 billion against $5.9 billion in 2015. Operating profit here decreased from $776 million to $711 million due to the mentioned restructuring costs.

In the hydraulic systems division, revenues fell from $2.5 billion to $2.2 billion. In the trucking business, sales were equal to $3.2 billion in 2016, while a year earlier they were measured at $3.68 billion.

The production of class 8 trucks in North America amounted to 228 thousand units in 2016, which slightly exceeded our expectations. Around the world, car markets were stable last year, "Arnold said.[4]

2015: Second Quarter Results

In 2015, Eaton's sales amounted to $20.9 billion.

On August 10, 2015, Eaton announced that it had reached net income per share of $1.16. Growth in the published reporting period was 5%^[5].

According to the company's management, the growth of operating profit in the second quarter is due to the high margin of operating profit and strict cost control, the indicator was adjusted by the negative impact of the foreign exchange rate in the amount of 5%. Excluding the negative impact of the foreign exchange rate, operating profit per share could have increased by 10%. "

Revenue was slightly lower than expected due to weaker positions in most markets. Sales in the second quarter fell by 7%: a decline of 6% was recorded due to the negative impact of the exchange rate and a 1% drop in organic sales.

The company expects an increase in operating profit per share in the third quarter of 2015 in the amount of $1 to $1.10. Taking into account the decline in organic sales growth and restructuring measures, operating profit will fluctuate between $4.40 and $4.60, which is 6% lower than previously forecast. 3% of these 6% are due to the cost of the restructuring program.

2014:3% sales growth

Sales in the second quarter of 2014 amounted to $5.8 billion, which is 3% higher than last year. Operating income for the second quarter of 2014, excluding tax costs of $37 million for the integration of recent acquisitions, as well as unforeseen expenses and profit, amounted to $529 million, which is 2% higher than the result of the same period in 2013.

Alexander M. Cutler, Chairman of the Board and CEO of Eaton, noted:

"Our results in the second quarter of 2014, taking into account unforeseen expenses, were above the forecast average. As we expected, sales during this period increased by 3%, and in the first quarter of 2014 - by 4%. The overall segment margin, which was impacted by a $39 million restructuring cost in the Industrial Sector, was also fully in line with our expectations. The high margin was demonstrated by the Hydraulic, Aerospace and Motor Transport divisions, as well as the Electrotechnical Products segment. The segment "Electrical Systems and Services" showed a weaker margin.

"A number

of unplanned circumstances have also had an impact on the company's profits during this period," Mr Cutler said. - Firstly, we completed the sale of two small aerospace enterprises, the cost of which before the payment of taxes amounted to $156 million. Secondly, we settled two years of litigation, with Meritor and Triumph, as well as relevant litigation, which cost us $644 million before paying taxes. "

Sales of the Electrotechnical Products segment amounted to $1.8 billion, which is 4% higher than in 2013, while operating profit amounted to $300 million. Excluding acquisition costs and integration of $12 million for the quarter, it amounted to $312 million, which is 10% higher than in the second quarter of 2013.

Sales of the Electrotechnical Systems and Services segment amounted to $1.6 billion, similar to the 2013 figure. Main sales increased by 1%, which was offset by a 1% decrease in currency translation. Operating profit of the segment amounted to $194 million.

Aerospace sales amounted to $486 million, which is 9% higher than the results of the same period in 2013. Operating profit in the second quarter increased by 3% compared to 2013 and amounted to $69 million. These figures already include $2 million in restructuring costs during the quarter.

"We are pleased with the overall order volume of the Electrotechnical and Aerospace businesses," said Mr. Cutler. "We continue to forecast that overall our end markets will grow by 3% in 2014."

2013

The company's sales in 2013 amounted to a record $22.0 billion, which is 35% higher than in 2012. Operating profit, minus $163 million for the integration of recent acquisitions, reached $2.0 billion and exceeded last year's figure by 42%. Operating income per share increased to $4.13, up 5% from 2012. Operating cash flow in 2013 amounted to $2.3 billion, which is 37% higher than in 2012.

"We expect our markets to grow by 3% in 2014," said Alexander M. Cutler, Chairman and CEO of Eaton. - We also believe that operating profit per share will reach record levels again in 2014. According to our preliminary estimates, in the 1st quarter it will be $0.95- $1.05, excluding the cost of integrating our recent acquisitions in the amount of $76 million. "

"Overall, according to our forecasts, in 2014 operating profit per share will be $4.50- $4.90, excluding the costs of integrating our acquisitions, which are estimated at $168 million. That forecast does not include profits from the sale of the two aerospace structural units, Mr. Cutler added. "On average, operating earnings per share could rise 14% in 2014."

2012

In January 2012, Eaton gave a forecast for the development of the company for 2012. Although the outlook for the world economy in 2012 remains uncertain, mainly due to the problems of public debt of the Eurozone countries, we are convinced that 2012 is likely to be a year of solid growth for the world markets in which we operate.

"According to our estimate, in 2012 our markets will grow by 5%, while the US market will show slightly higher growth rates than foreign markets. We expect to outstrip the growth of our markets in 2012 by about $320 million, "says Cutler. "In 2012, we expect additional profit of US $90 million due to the 2011-completed de-consolidation of the acquired assets. Changes in exchange rates in 2012 are expected to reduce our earnings by approximately US $550 million. Overall, we expect our profit to grow by 4 percent this year compared to 2011. "

"We believe 2012 operating earnings per share will be a record once again," Cutler says. "We estimate that operating earnings per share for the first quarter, excluding the integration costs of our recent acquisitions of about $0.01, will be between $0.80 and $0.90. We expect full-year 2012 operating earnings per share, excluding integration costs for recent acquisitions of about $0.05, to be between $4.15 and $4.55. Taking into account these forecasts, our operating earnings per share in 2012 will show growth in the range of 5-15 percent. "

"In light of the strong results achieved in 2011 and our 2012 guidance, we are increasing our quarterly dividend by 12 percent, raising our quarterly dividend from $0.34 to $0.38 per share," Cutler states.

2011: Sales up 17% to $16bn

In 2011, sales reached 16 billion, dollars up 17% from 2010. Net income was dollar USA 1.35 billion, up 45% from 2010, and net income per share of 3.93 was 44 percent higher than in 2010.

Operating income in 2011 was US $1.36 billion, up 42 percent from 2010. Operating income per share in 2011 was $3.96, up 41 percent from 2010.

Chairman and CEO of Eaton Corporation Alexander M. Cutler:

"The 17

percent increase in sales in 2011 reflects solid growth, despite the fact that the global economy was subject to strong fluctuations during the year," says Cutler. "During 2011, we raised our earnings guidance three times as market performance exceeded our year-to-date expectations."

"Giving an overall assessment of 2011, I can say with confidence that for us it was a record year in many respects," Cutler believes. "Sales exceeded $16 billion for the first time, our segmented operating income rose one and a half per cent to 14.2 per cent, our sales in developing countries reached 27 per cent of the total and operating earnings per share 15 per cent above our previous record.

In 2011, we completed nine acquisitions, gross income from which amounted to about $320 million in 2011.

During this period, Eaton has 70,000 employees and the company sells in more than 150 countries around the world.

2010: Revenue of $13.7 billion

Sales in 2010 amounted to 13.7 billion. dollars USA

1911: Founding of the Company

Eaton was founded in 1911 by J. O. Eaton;

Notes