10-KPeriod: FY2021

Eaton Corp plc Annual Report, Year Ended Dec 31, 2021

Filed February 23, 2022For Securities:ETN

Summary

Eaton Corporation plc (ETN) presents its 2021 annual report, highlighting its role as an intelligent power management company focused on sustainability and capitalizing on electrification and digitalization trends. The company reported revenues of $19.6 billion for 2021, serving customers in over 170 countries. A significant strategic move during the year was the sale of its Hydraulics business to Danfoss A/S. Eaton operates across several key segments: Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility. The company emphasizes its strong competitive positions within these segments, driven by product performance, technology, and customer service. Despite global economic recovery from COVID-19, Eaton faced challenges including inflation and supply chain constraints, which it actively managed. The report also underscores Eaton's commitment to human capital management, focusing on inclusion, diversity, competitive compensation, and employee safety, with detailed metrics on workforce diversity and progress in reducing safety incidents.

Financial Highlights

56 data points
Beta

Revenue

$19.63B

32.3% Gross Margin

Net Income

$2.15B

10.9% Net Margin

EPS (Diluted)

$5.34

Total Assets

$34.03B

Cash & Equivalents

$297.00M

Free Cash Flow

$1.59B

Financial Statements
Beta
Revenue$19.63B
Cost of Revenue$13.29B
Gross Profit$6.33B
R&D Expenses$616.00M
SG&A Expenses$3.26B
Interest Expense$144.00M
Net Income$2.15B
EPS (Basic)$5.38
EPS (Diluted)$5.34
Shares Outstanding (Basic)398.70M
Shares Outstanding (Diluted)401.60M

Key Highlights

  • 1Eaton reported revenues of $19.6 billion in 2021, demonstrating significant market presence.
  • 2The company completed the sale of its Hydraulics business to Danfoss A/S on August 2, 2021.
  • 3Eaton is strategically positioned to capitalize on global growth trends in electrification and digitalization.
  • 4The company faces operational risks including supply chain constraints, inflation, and potential impacts from the ongoing COVID-19 pandemic.
  • 5Cybersecurity is identified as a material risk, given the increasing connectivity of products and reliance on IT systems.
  • 6Eaton maintains a strong focus on human capital management, including diversity, inclusion, and employee safety initiatives.
  • 7The company has a global operational footprint with manufacturing facilities in 36 countries.

Frequently Asked Questions

The most significant strategic change for Eaton in 2021 was the completion of the sale of its Hydraulics business to Danfoss A/S on August 2, 2021. This divestiture is a key part of Eaton's ongoing portfolio management.

Eaton experienced challenges related to supply chain constraints and inflation during 2021, stemming from the global economic recovery post-COVID-19. The company also highlighted cybersecurity threats as a material risk to its operations due to increasing product connectivity and reliance on IT systems.

Eaton is positioning itself as an intelligent power management company by focusing on improving the quality of life and protecting the environment. It aims to accelerate the transition to renewable energy and solve urgent power management challenges by capitalizing on the global growth trends of electrification and digitalization. The company is also committed to making its own operations carbon neutral by 2030.

Eaton emphasizes strong human capital management, focusing on attracting, developing, and retaining employees. Key initiatives include fostering inclusion and diversity across its global workforce, offering competitive compensation and benefits benchmarked against industry peers, and prioritizing employee safety with a goal of zero safety incidents.