Eaton to change business segment reporting
Thu Apr 2, 1998 -
CLEVELAND, OHIO ... Eaton Corporation (NYSE:ETN) announced today that when reporting first quarter 1998 results, the company will change its business segment reporting in order to comply with a new requirement of the Financial Accounting Standards Board.
The new FASB standard, Statement 131, must be adopted by 1999 and requires that a company’s financial reporting segments be based on the way that management organizes the segments within the company for making operating decisions and assessing performance.
Eaton had previously reported its financial results in two major business segments:
(1) Electrical and Electronic Controls and (2) Vehicle Components. In the future, the company will report information for the following five business segments: Industrial & Commercial Controls, Automotive Components, Truck Components, Semiconductor Equipment, and Hydraulics & Other Components.
In order to facilitate a better understanding of the first quarter results, click HERE to see a five-year history based on the new segment reporting format.
Stephen R. Hardis, chairman and chief executive officer, said the new reporting format will provide significantly more detailed information about Eaton’s operations.
"The five-year results attest to the historical earnings strength of the company’s primary businesses," Hardis said. "Providing additional financial information will help investors understand that Eaton is a changed company.
"During the past year, a number of strategic acquisitions and divestitures have significantly strengthened the long-range earnings outlook," Hardis said. "More importantly, the new segment reporting reveals not only the financial strength, but the balance of our company.
"The new segment breakdown also shows the long-term growth of our semiconductor operations. Even though that industry is currently in a down cycle, we’re continuing to invest in order to extend our global leadership in this high technology industry. Despite its relatively severe cyclical swings, this business offers exciting potential."
Eaton Corporation is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial and semiconductor markets. Principal products include electrical power distribution and control equipment, truck drivetrain systems, engine components, hydraulic products, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 49,000 employees and 145 manufacturing sites in 28 countries around the world. Sales for 1997 were $7.6 billion.