Eaton redefines business segment financial reporting to reflect changing nature of company
CLEVELAND, OHIO....Eaton Corporation today said that it will redefine its financial business segments, effective with the release of the company’s second quarter financial results next week, in order to more accurately reflect the company’s changing business mix.
The complete financial results are reported on the page linked below:
Restated Historical Business Segment Information
The company’s business segment reporting will now be classified into the following five categories:
Automotive Components Fluid Power & Other Components Industrial & Commercial Controls Semiconductor Equipment Truck Components Eaton Chairman and Chief Executive Officer, Stephen R. Hardis, said, "With the acquisition of Aeroquip-Vickers, Inc. in April, Eaton became a leader in the fluid power industry, and this segment now becomes Eaton’s largest.
"The addition of Aeroquip’s hose and coupling business, along with Vickers’ hydraulics components, when added to Eaton’s existing fluid power product lines, will create a fluid power business with sales in excess of $2 billion, on an annualized basis."
Hardis said that the acquisition of Aeroquip-Vickers more clearly affirms the definition of Eaton as a diversified industrial manufacturer. "We believe the new segment reporting structure effectively reflects the changes that are taking place within Eaton to create a company that will provide better-balanced returns from the markets we serve," Hardis said.
"In addition to giving Eaton fluid power leadership positions in industrial and mobile equipment markets, the acquisition of Aeroquip-Vickers increased the company’s participation in aerospace markets to about $750 million annually, and strengthened the company’s involvement in automobile and truck markets. Our leadership in these businesses, when combined with our strength in electrical equipment and semiconductor equipment markets clearly demonstrate, we believe, the changed nature of Eaton."
Eaton Corporation is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 65,000 employees and 215 manufacturing sites in 25 countries around the world. Sales for 1998 were $6.6 billion. On April 9, 1999 Eaton acquired Aeroquip-Vickers, Inc., which had sales of $2.1 billion in 1998.