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Why invest in Eaton

Built on a foundation of shared values and vision, we deploy advanced technologies that deliver real value for our customers and shareholders.

A portfolio of market-leading businesses

We are a power management company, uniquely positioned to optimize combinations of electrical, hydraulic and mechanical power. Our portfolio of market-leading businesses are in industries where advanced technologies, reliability, safety and a track record of performance matter.

Our broad array of products is found in mission-critical applications, protecting people and assets, while improving productivity. Our highly engineered products help our customers meet stringent code and regulatory requirements. And our large installed base of equipment around the world creates opportunities for predictable, high-margin aftermarket sales.

With our four businesses, we have a long history of improving margins and reducing earnings volatility. Each of our businesses is evaluated against a set of criteria that reflects the characteristics we believe create an attractive business: Leadership in large global markets, above-average growth potential, high-margin potential, high returns and consistent profitability.

2016 Eaton sales mix

 

Segment operating margins

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Segment operating margins exclude acquisition integration charges.
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Driving long-term value for shareholders

We’re taking actions to drive long-term value for shareholders through a strategy focused on:

Strategic growth initiatives – Organic growth continues to play a central role in how we define success across our company. We invest to capitalize on technology differentiation, leverage our channel and service strengths and deliver superior value for our customers.  We are well positioned to win in our increasingly connected world. We make the “things” that makes the Internet of Things intelligent and viable. We’re going beyond collecting and reporting data. We’re creating value for the end user – and improving reliability, safety and efficiency.

Operational efficiency to drive margin improvements – We’ve put in place a multi-year plan to expand margins by reducing structural costs and improving our operations. Our businesses and functions are finding smarter, better ways to perform and transferring ideas and best practices across our company.

Generating significant scale benefits – Acting as One Eaton, we are finding ways to leverage the scale of our global enterprise. From sharing technologies to capital investment to transferring ideas and best practices across our company, we are making the whole much more than the sum of the parts.

Disciplined capital allocation – We are generating strong cash flow and improving cash flow generation as a percentage of sales and net income. This enables us to invest in the business and consistently return cash to our shareholders through a dividend that grows with earnings and annual share repurchases. With our excess cash, we look to extend and expand our competitive position with value-creating acquisitions.