Summary
Eaton Corporation plc (ETN) filed its 2013 annual report on February 26, 2014, highlighting its position as a global power management company. A significant event in the preceding year was the acquisition of Cooper Industries plc for $13,192 million, a strategic move aimed at achieving substantial synergies, including cost efficiencies, revenue growth opportunities, and expanded market reach. The company operates across diverse segments such as Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, and Vehicle, serving a wide array of industrial and consumer markets globally. Risk factors identified for 2013 include the potential for integration challenges with Cooper, volatility in end markets, the necessity for continuous innovation in new products and services, and the importance of attracting and retaining key personnel. The company also faces operational risks related to its global manufacturing footprint, cybersecurity threats, currency fluctuations, and changes in tax regulations. Despite these risks, Eaton emphasizes its strong competitive positions across its segments and ongoing efforts to manage its global operations effectively. The report indicates that disclosure controls and procedures were effective as of December 31, 2013.
Financial Highlights
56 data points| Revenue | $22.05B |
| Cost of Revenue | $15.37B |
| Gross Profit | $6.68B |
| R&D Expenses | $644.00M |
| SG&A Expenses | $3.89B |
| Operating Income | $3.18B |
| Net Income | $1.86B |
| EPS (Basic) | $3.93 |
| EPS (Diluted) | $3.90 |
| Shares Outstanding (Basic) | 473.50M |
| Shares Outstanding (Diluted) | 476.70M |
Key Highlights
- 1Acquisition of Cooper Industries plc for $13.192 billion completed on November 30, 2012, with significant expected synergies.
- 2Eaton operates as a diversified power management company across Electrical, Hydraulics, Aerospace, and Vehicle segments.
- 3The company has a global presence with employees in over 60 countries and sales in over 175 countries.
- 4Key risks identified include integration challenges from the Cooper acquisition, end-market volatility, and the need for continuous innovation.
- 5Eaton's backlog at December 31, 2013, was approximately $4.6 billion.
- 6The company confirmed effective disclosure controls and procedures as of December 31, 2013.
- 7Eaton is in the process of selling its Aerospace Power Distribution Management Solutions and Integrated Cockpit Solutions businesses to Safran for $270 million, expected to close in early Q2 2014.