About Eaton Industrial Corporation
For power management company Eaton, diversified operations are key to a healthy business. Helping customers manage electrical, hydraulic and mechanical power with efficiency and safety, Eaton provides an array of products, from automation controls, lighting, plastics, pumps, valves, transmissions, motors and generators, and wiring devices. It also manufactures components for the vehicle and aerospace sectors, and sells clutches and brakes under the Airflex brand. Other Eaton brands are Cutler-Hammer, Aeroquip, and Weatherhead. The Dublin, Ireland-based company has operations in about 60 countries and sells products to customers in more than 175 countries. The US accounts for about 55% of revenue.
Eaton organizes its business into six primary segments: Electrical Products, Electrical Systems & Services, Hydraulics, Aerospace, Vehicle, and eMobility. The two electrical segments together pull in about 60% of sales, with the remainder spread among the other four segments.
The Electrical Products segment specializes in electrical and industrial components, power supply and circuit protection, and lighting products. Electrical Systems & Services focuses on the distribution and security of power distribution. Hydraulics makes connectors, filters, hoses, motors, pumps, and valves as well as electronics and software for mobile and industrial applications.
The Vehicle segment makes drivetrain systems and performance-improving components for original equipment manufacturers and aftermarket customers of trucks, cars, and agricultural equipment. The Aerospace segment designs and manufactures components that power cockpit interfaces, engines, fuel systems, hydraulic systems, and motion controls for commercial and military aircraft. The eMobility segment makes electronic and mechanical components and systems that improve the power management and performance of on-road and off-road vehicles.
Eaton has global operations and serves global markets. It sells products and services to customers in more than 175 countries, and has employees in more than 60. The US is Eaton's biggest market at about 55% of sales, Europe pulls in just over 20% of revenue, and Canada, Latin America, and the Asia-Pacific region make up the remainder.
Sales and Marketing
In the Electrical and Electrical Services segments, sales are made directly to original equipment manufacturers, utilities, and certain other end users, as well as through distributors, resellers, and manufacturers' representatives. In Hydraulics and Aerospace, products are sold and serviced through a variety of channels.
Eaton's revenue has rebounded in the past two years after dipping to $19.7 billion in 2016.
In 2018, revenue rose about 6% to $21.6 billion, up about $2.1 billion from 2017, driven by higher sales in each segment. In Eaton's biggest business, Electrical Products sales advanced 3% from for commercial, residential, and industrial applications. Electrical Systems and Services saw a 6% sales increase from strength in large industrial projects and the commercial construction, data center, and oil-and-gas markets.
Eaton's net income dropped to $2.1 billion in 2018, a 28% decrease from $2.9 billion in 2017. Net income in 2018 included an after-tax expense from an arbitration decision, while net income in 2017 included a gain from the sale of a business.
Eaton had $903 million in cash in 2018 compared to $1.5 billion in the year before. In 2018, operations produced $1.4 billion, while investing activities used $629 million and financing activities used $1.3 billion.
Eaton is investing it all its businesses to provide new products with the goal of increasing margins all around.
The company is building new facilities around the world to increase production and drive overseas sales. Facilities include the company's first aerospace manufacturing facility in India and an eMobility plant in China to produce electric vehicles for the country.
Eaton partnered with China-based manufacturer Shaanxi Fast Gear to develop and make light-duty manual transmissions to expand Eaton's presence in the Asia/Pacific, Eastern Europe, and Africa markets. In Turkey, Eaton significantly expanded capacity at its hydraulic hose plant to reduce customer lead times, improve on-time delivery, and build market share.
The company sold its lighting business in 2019 to Signify N.V., based in the Netherlands, for $1.4 billion. The business is a leading provider of LED lighting and controls with annual revenue of $1.7 billion. Eaton sold the business to focus on its industrial products and services.
The company has faced challenges from the trade war between the US and China, which has made some materials and products more expensive. Mostly, Eaton avoids tariff issues. In China, it has about two dozen plants and 90% of their output is sold in the region. The company said it's covered most of the trade impact (as well as material inflation) through incremental price increases.
Mergers and Acquisitions
In 2019 Eaton acquired 82% of Ulusoy Elektrik Imalat Taahhut ve Ticaret A.S., a manufacturer of electrical switchgear based in Ankara, Turkey. Among its products are medium voltage products for industrial and utility customers.
In 1911 Joseph Eaton and Viggo Torbensen started the Torbensen Gear and Axle Company to make an internal-gear rear truck axle that Torbensen had patented in 1902. The company moved from Newark, New Jersey, to Cleveland in 1914. After Republic Motor Truck bought Torbensen (1917), Eaton formed the Eaton Axle Company (1919), repurchased Torbensen (1922), and by 1931 had bought 11 more auto parts businesses. In 1932 it became Eaton Manufacturing.
In recent years, Easton has changed from a manufacturer of vehicle parts to a provider of power management tools and services with more emphasis on selling electrical products and electrical systems and services.
23555 Euclid Ave
Cleveland, OH 44117-1703
Phone: 1 (216) 523-4205
Employer Type: Privately Owned
Director: Vincent Cimino
Information Technology Manager: Lawrence Frank
Technician: Dan Wadsworth
Employees (This Location): 433
Employees (All Locations): 736