Summary
Eaton Corporation plc (ETN) reported $21.6 billion in net sales for the fiscal year ending December 30, 2018. As a global power management company, Eaton provides energy-efficient solutions across electrical, hydraulic, and mechanical power sectors. The company operates in 59 countries, serving customers in over 175 countries, with a diverse business model encompassing Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility segments. Key risks highlighted include the volatility of end markets, the success of new product development and innovation, the ability to attract and retain qualified personnel, and potential disruptions to global operations from geopolitical events or natural disasters. The company also faces risks related to information technology security, currency fluctuations, and changes in tax legislation. Eaton actively manages its supply chain and inventory, noting no significant raw material availability constraints in 2018.
Financial Highlights
56 data points| Revenue | $21.61B |
| Cost of Revenue | $14.51B |
| Gross Profit | $7.10B |
| R&D Expenses | $584.00M |
| SG&A Expenses | $3.55B |
| Operating Income | $3.63B |
| Net Income | $2.15B |
| EPS (Basic) | $4.93 |
| EPS (Diluted) | $4.91 |
| Shares Outstanding (Basic) | 434.30M |
| Shares Outstanding (Diluted) | 436.90M |
Key Highlights
- 1Eaton generated $21.6 billion in net sales for the fiscal year 2018.
- 2The company operates globally with approximately 99,000 employees in 59 countries.
- 3Eaton's business is diversified across six key segments: Electrical Products, Electrical Systems and Services, Hydraulics, Aerospace, Vehicle, and eMobility.
- 4Key risks identified include market volatility, product innovation challenges, talent retention, operational disruptions, cybersecurity threats, and currency fluctuations.
- 5The company experienced no significant raw material availability constraints in 2018.
- 6Eaton repurchased approximately 9.8 million ordinary shares in the fourth quarter of 2018 for $700 million.
- 7During Q4 2018, Eaton had minimal sales to Iran, generating approximately $0.93 million in revenue and $0.31 million in net profit, and has decided not to pursue future sales to Iran.