Eaton

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

At the beginning of 2014:

• Headquarters Dublin in () Ireland
• Regional headquarters: Shanghai (China), Walrus (Switzerland), Mexico City (Mexico); Cleveland (USA)
• Innovation Centers in the USA, China, India, Czech Republic;
• Customers in more than 150 countries
• About 102,000 employees worldwide;
• Chairman 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 performance, fuel saving and safety of passenger cars and commercial vehicles.

Electrical sector

Offers equipment and solutions in five areas, combined general purpose - power management:

• Providing high-quality power supply
• Start-up and protection of electric motors
• Energy distribution
• Automation
• Comprehensive Power Solutions

Industrial sector

It combines three areas of the company's business:

• Hydraulic Group: systems for monitoring, liquid supply, filtration
• Aerospace Group: hydraulic equipment, fuel systems, piping systems, electrical, sensor equipment and instrumentation
• Vehicle Group-Automatic and Mechanical

transmissions, drive systems

• and other equipment that ensures the rational consumption of fuel and the safety of commercial, commercial and freight transport.

Performance indicators

2021: Revenue increased by 10% due 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 electrical solutions division (this includes UPS) outside the United States in 2021 reached $5.52 billion against $4.7 billion a year earlier. Unit revenues in the United States increased from $6.68 billion to $7.24 billion.

The volume of business related to the release of hydraulic components in 2021 turned out to be $1.3 billion, falling 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.

Eaton Financial Performance

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 finished 2021 with a net profit of $2.15 billion, while in 2020 it amounted to $1.14 billion.

The largest profit was recorded in the direction of electric products sold on the American market - $1.5 billion according to the results of 2021, while in 2020 the figure was $1.35 billion.. The profit from the implementation of such decisions worldwide (with the exception of the United States) amounted to $1.03 billion, while a year earlier the figure reached $750 million. In the divisions responsible for the production of hydraulic, aerospace and automotive solutions, the following profit indicators took place: $177 million, $580 million and $449 million, respectively. The business eMobility became 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, a noticeable decrease (by 17%) compared to sales a year ago, which amounted to $21.39 billion.

Sales of electrical products in the United States in 2020 decreased 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.

Eaton Financial Performance

The volume of business related to the release of hydraulic components in 2020 turned out to be $1.84 billion, reducing 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 did not reach the value of a year ago ($2.48 billion).

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

The largest profit was recorded 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 decisions 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 divisions responsible for the production of hydraulic, aerospace and automotive solutions, the following profit indicators took place: $186 million, $414 million and $243 million, respectively. The business eMobility became 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 an office in Moscow.

2019: Revenue growth by 27.8% to 2.29 billion rubles.

At the end of 2019, Eaton (Eton 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 year amounted to 2,292,893 thousand rubles, which is 27.8% higher than in 2018 year.

2018

Revenue - 1.79 billion rubles.

The revenue of Eaton (Eton LLC) for 2018 year amounted to 1,793,953 thousand rubles.

Elena Mironova - Eaton CEO 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. More details here.

2013: Eaton's business in Russia has grown 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. According to him, the electric sector occupies a large share in the sales structure of Eaton's Russian office, where the "High-quality power supply" and "Energy distribution" directions develop in approximately equal ratio.

The electrical sector and the industrial sector demonstrate good sales dynamics, while the growth drivers are different in both cases, 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 energy quality and distribution.

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 a reduction in state funding and the freezing of many infrastructure projects."

An example of the largest projects in the UPS segment in Russia over the past year in the company is the supply of large batches of Eaton UPS for Olympic facilities in Sochi and for the telecommunications industry: in particular, to 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 distribution partners and acquires local OEM customers, says Igor Anufriev, citing cooperation with the largest Russian player in the Rostselmash market, to whom the company supplies hydraulic transmission to their combines Akros and Vector.

Eaton in Russia plans to significantly expand the network of distributors working in the field of electrical engineering

"In other areas, aerospace and motor transport, the company is moving in accordance with projects that, due to the specifics of the business, are more long-term, he adds. For example, at the beginning of 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 release by Austriut Corporation, "says Igor Anufriev.

In absolute terms, Eaton does not disclose revenue in Russia, but the company talks about plans to increase 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 this 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 - localization of production in the 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 will be achieved, among other things, due to the significant expansion of the network of distributors working in the field of electrical engineering. At the end of 2013, the company in Russia has more than 140 service partners in the direction of "High-quality power supply," more than 250 IT partners registered in the Eaton Power Advantage program, and a total of more than 50 partners and distributors in the direction of "Energy Distribution."

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

The Russian office of Eaton in 2011 continued a confident double-digit growth, exceeding the sales plan by 11%.

2010

63% Sales Growth

In 2010, sales grew by 63%, and for 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 the final markets (by approximately 7% per year), ahead of the company's growth by 50% compared 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's sales in Russia are provided by the electrical sector, but the expected advanced development of other areas should balance all the company's businesses. So, for example, Eaton offers interesting solutions at the junction of electrical and hydraulic areas, which will be promoted in Russia.

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

• Eaton Powerware Series UPS (formerly produced under the Powerware brand)
• Eaton Pulsar UPS (formerly branded as MGE Office Protection Systems)
• Eaton E Series UPS (formerly issued under the Santak brand)
• Moeller Products

The Russian office focused on the development of a comprehensive solution for data centers, which includes UPS, medium and low voltage equipment. In the near future, Eaton's proposal for data centers will be expanded with air flow control systems. These solutions are part of the Wright Line product 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 take place 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 Eton LLC

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

2009: Opening of Eaton corporate office in Moscow

On October 1, 2009, Eaton's corporate office was opened in Moscow. Since that moment, all business areas have been represented on the Russian market.

2008: Purchase and integration with Moeller Group

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

2007: Replenishment of UPS Line with MGE Office Protection Systems

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

Eaton business in Kazakhstai

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

History

2022: Purchase of electric vehicle component manufacturer Royal Power Solutions for $600 million

In early January 2022, Eaton Corporation bought Royal Power Solutions. The transaction is estimated at $600 million. It is expected that this acquisition will allow Eaton Corporation to increase the efficiency of the company's entire energy management business. More details here.

2021

$1.65 billion Tripp Lite acquisition plans

Electrical equipment manufacturer Eaton buys its 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. More details here.

2020: Power Distribution Data Center Electrical Equipment Developer Purchase

In early February 2020, the manufacturer of uninterruptible power supplies Eaton announced the acquisition of Power Distribution, but did not name the cost of the transaction, as well as other details of the agreement. It is only reported that it is planned to fulfill all the formalities related to the sale of Power Distribution in the first quarter of 2020. The deal must first be approved by regulators. More details here.

2019

Revenue - $21.39 billion, profit - $2.21 billion

In 2019, Eaton raised $21.39 billion, which is slightly less than a year ago at $21.61 billion. The main driver of income growth was the direction of electrical systems and services, the turnover in 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 related to the release of hydraulic components in 2019 amounted to $2.55 billion, falling from $2.76 billion in 2018.

Eaton raised $21.39 billion, slightly less than a year ago at $21.61 billion

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 a little more than the 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 surpasses the profit of a year ago of $370 million.

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

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 acquisition and asset separation costs, was higher than 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 in order to expand production capacity abroad and improve its electricity distribution systems. More details 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 continue to fall on electric products (including UPS): their sales in 2018 reached $7.12 billion, while in 2017 - $6.92 billion.

Eaton Financial Performance

In the direction of "Electrical Systems and Services," a turnover of $6.02 billion was registered, which exceeds the figure of a year ago of $5.67 billion.

In the hydraulic systems division, 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 a eMobility division specializing in the development of solutions for electric vehicles. At the end of 2018, turnover here reached $320 million, increasing from $283 million in 2017. In 2018, the company announced plans to invest $500 million in this business within 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 electric products division increased from $1.23 billion to $1.31 billion, in the electric systems and services division - from $770 million to $896 million. In the direction of hydraulic solutions, profit turned out to be $370 million in 2018 against $288 million a year earlier.

In the aerospace technology segment, profits increased 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.

Eaton's financial report notes that rising product prices fully offset the negative impact of increased duties and inflation.^[3]

2016: Income drop due to restructuring

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

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

We have been able to resolve a number of insurance issues that we have been working 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.

Eaton revenue fell 5% in 2016

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

Eaton's revenue in the Electrical Systems and Services division  reached $5.7 billion in 2016, compared to $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 automotive 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. Car markets around the world were stable last year, "said Arnold.[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 reporting period amounted to 5%^[5].

According to the company's management, the growth in operating profit in the second quarter is due to the high margin of operating profit and strict control of expenses, the indicator is adjusted by the negative influence of the foreign exchange rate of 5%. Without taking into account the negative impact of the foreign exchange rate, operating earnings per share could increase 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 compared to last year. Operating profit for the second quarter of 2014, excluding tax costs of $37 million for the integration of recent acquisitions, as well as contingencies and profits, 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 Chief Executive Officer of Eaton, noted:

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

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

Sales of the Electrical Products segment amounted to $1.8 billion, which is 4% higher than in 2013, while operating profit amounted to $300 million. Excluding acquisition and integration costs 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 Electrical Systems and Services segment amounted to $1.6 billion, similar to 2013. Major sales increased by 1%, which was offset by a decrease of 1% when the currency was translated. The segment's operating profit 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 total volume of orders for Electrical and Aerospace businesses," Mr. Cutler said. "We continue to predict that overall, our final 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 profit per share increased to $4.13, which is 5% higher than in 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 of the Board and Chief Executive Officer of Eaton. - We also believe that in 2014 operating profit per share will reach record levels again. 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. "

"In general, according to our forecasts, in 2014 operating profit per share will be $4.50- $4.90, excluding the cost of integrating our acquisitions, which is estimated at $168 million. This forecast does not include profit from the sale of two aerospace structural units, "Mr. Cutler added. - On average, operating profit per share in 2014 may grow by 14%. "

2012

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

"According to our estimates, our markets will grow by 5% in 2012, while the US market will show a slightly higher growth rate 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 to come from the 2011-completed fragmentation of acquired assets. Exchange rate changes in 2012 are expected to reduce our earnings by about $550 million. In general, we expect that this year our profit will grow by 4 percent compared to 2011. "

"We believe that operating earnings per share in 2012 will again be a record," Cutler says. "We estimate operating earnings per share for the first quarter, excluding the cost of integrating our recent acquisitions of about dollar $0.01, to be between $0.80 and $0.90. We expect full year 2012 operating earnings per share, excluding the cost of integrating recent acquisitions in the order of US $0.05, to be between US $4.15 and US $4.55. Based on 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 forecasts for 2012, we are increasing our quarterly dividends by 12 percent, raising quarterly dividends from 0.34 to 0.38 US dollars per share," Cutler said.

2011: Sales growth by 17% to $16 billion

In 2011, sales reached 16 billion, dollars which is 17% more than in 2010. Net income amounted to 1.35 billion, which is 45% more than in 2010, and net income per share of 3.93 dollar USA was 44% higher than in 2010.

Operating profit in 2011 amounted to $ 1.36 billion, which is 42 percent higher than in 2010. Operating profit per share in 2011 was $3.96, up 41 percent from 2010.

Eaton CEO Alexander M. Cutler:

17 percent increase in sales in 2011 reflects strong growth, despite the fact that the global economy was subject to strong fluctuations during the year," Cutler says. "During 2011, we raised our profit outlook three times as market performance exceeded our expectations at the beginning of the year."

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

In 2011, we completed nine acquisitions with gross revenues of about $320 million in 2011.

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

2010: Revenue $13.7 billion

Sales in 2010 amounted to 13.7 billion. dollars USA

1911: Foundation of the company

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

Notes