Eaton Corporation

Eaton Logo
Type	Public(NYSE: ETN) S&P 500 Component
Industry	Components
Founded	1911
Headquarters	Cleveland, Ohio
Key people	Alexander M. Cutler, Chairman, President & CEO
Revenue	$16.1 billion USD (2011)
Employees	73,000
Divisions	Electrical Sector Industrial Sector - Aerospace - Hydraulics - Filtration - Vehicle
Website	http://eaton.com

Eaton Corporation (NYSE: ETN) is a global diversified power management company with 2011 sales of $16.1 billion. The company is a leading provider of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 73,000 employees and sells products to customers in more than 150 countries.

History[link]

In 1911, Joseph O. Eaton, brother-in-law Henning O. Taube and Viggo V. Torbensen incorporated the Torbensen Gear and Axle Co. in Bloomfield, New Jersey. With financial backing from Torbensen's mother, the company was set to manufacture Torbensen's patented internal-gear truck axle. In 1914, the company moved to Cleveland, Ohio, to be closer to its core business, the automotive industry.

The Torbensen Axle Company was incorporated in Ohio in 1916, succeeding the New Jersey corporation. A year later, Republic Motor Truck Company, Torbensen's largest customer, bought out the company. But Eaton and Torbensen were not content and bowed out of Republic to form the Eaton Axle Company in 1919. A year later, in 1920, Eaton Axle Company merged with Standard Parts. Standard Parts went in receivership later the same year and was later liquidated. In 1923, Eaton bought the Torbensen Axle Co. back from Republic and changed the name to the Eaton Axle and Spring Company.

Eaton officers believed the quickest way to grow the business was through acquisitions and began buying companies in the automotive industry, By 1932, the diversified company changed its name to Eaton Manufacturing Company. In 1937, Eaton became international by opening a manufacturing plant in Canada. The company name changed once again in 1965 to Eaton Yale & Towne, Inc. after the acquisition of Yale & Towne Manufacturing Co. in 1963. Stockholders approved the change to the company's current name in 1971. Eaton Corp. continues its founder's "philosophy" of growth through acquisition along with divesting businesses that no longer fit the corporate vision. In 1978, Eaton Corporation acquired Samuel Moore & Company, Kenway Systems and Cutler-Hammer.^[1]

Eaton Corporation is based in the Eaton Center, its 28-story office tower in downtown Cleveland. From 1920s-1964 Eaton was based on East 140th Street. In 1964, Eaton moved its headquarters into the new Erieview Tower where it remained until 1983. In that year, Eaton Corporation moved into another Cleveland tower which was renamed for it.^[2] Construction of a new Template:Convert/sq ft facility in Beachwood, Ohio is currently underway, with projected completion scheduled for late 2012.^[3]

Current work[link]

Eaton Electrical purchased the Westinghouse Distribution and Controls Business Unit in 1994. The acquisition included all of the Westinghouse electrical distribution and control product business and also included stipulations that the Westinghouse name cannot be used by anyone else on these types of products for years. Today, Eaton Electrical manufactures electrical distribution and control products branded "Eaton" or "Cutler-Hammer" which can replace Westinghouse products in commercial and industrial applications.

Eaton Corporation is divided into five businesses: Aerospace, Automotive, Electrical, Hydraulics and Truck. Eaton spun-off its semiconductor manufacturing equipment business as Axcelis Technologies in 2000.

These divisions are operate world-wide. In 2003, Eaton's Electrical Distribution and Control business(formerly known as Cutler-Hammer) acquired the electrical division of Delta plc. This acquisition brought Delta's brands Holec, MEM, Tabula, Holec, Bill and Elek under the Eaton nameplate^[4] with the previous Westinghouse divisions and gave the company manufacturing facilities to meet IEC standards, one of the steps to become a global company and developing a worldwide standard.

Soon after this acquisition, Eaton entered a joint venture with Caterpillar Inc. and purchased 51% of I & S operations (now known as Intelligent Switchgear Organization, LLC).^[5] This was followed in 2004 by the acquisition of Powerware.^[6] The Powerware brand is known for the design and production of medium to large Uninterruptible Power System (UPS) devices. After several years of co-branding UPS products "Eaton|Powerware" the company is switching to the single brand Eaton for all UPS products including; BladeUPS, 9355, 9390, 9395, and 9E.

In 2006, Eaton entered the data center power distribution market. Initial products were internally developed PDU's and RPP's under the Powerware brand and included the PowerXpert metering system. A Powerware brand Static Transfer Switch was added to the portfolio through a brand-label relationship with Cyberex. To complete the power distribution portfolio Eaton released a line of rack power distribution products under its Powerware brand called ePDU. It acquired Aphel Technologies Ltd., a manufacturer of power distribution product for data centers based in Coventry, UK.^[7] Shortly after, it added Pulizzi Engineering Inc., Santa Ana, CA-based manufacturer of mission critical power distribution.^[8] In late 2007, it acquired the MGE Office Protection Systems division of Schneider Electric, as a result of Schneider's acquisition of APC. A Taiwanese manufacturer, Phoenixtec, was also acquired giving the company the highest share in the Chinese single-phase UPS market.^[9]

Eaton's hybrid electric powertrain combines a diesel engine and electric motor to drive the vehicle.^[10]

On May 21, 2012 Eaton announced that they have agreed to purchase Ireland based Cooper Industries in a cash-and-stock deal valued at about $11.46 billion. The new company will be called Eaton Global and incorporated in Ireland. Current Eaton Chairman and CEO Alexander Cutler will head the new corporation. The Irish High Court, and shareholders of both companies must approve the deal before it can close. The Cooper share holders will receive $39.15 in cash and 0.77479 of a share in the newly created company, for each Cooper share held. This is worth $72 per share based on Eaton’s closing share price of $42.40 on May 18, 2012, and is 29% above Cooper’s closing stock price. ^[11]

Environmental record[link]

Eaton was selected in 2008 as a recipient of the CALSTART Blue Sky Award with recognition for its environmentally "green" transportation investments, products and actions. The award was directed towards the company's efforts to pioneer heavy duty hybrid-drive technology for trucks. The annual awards recognize outstanding marketplace contributions to clean air, energy efficiency and to the clean transportation industry overall by companies, organizations and individuals.^[12]

Operations of Eaton involve the use and disposal of certain substances regulated under environmental protection laws. Eaton continues to modify certain processes on an ongoing, regular basis to reduce the impact on the environment, including the reduction or elimination of certain chemicals used in, and wastes generated from, operations. Eaton has set standards for itself in the category of environmental protection vowing to reduce its own greenhouse gas emissions by 18 percent by 2012.^[13]

In 2006, Eaton joined the Green Suppliers Network, a public-private partnership with the EPA and U.S. Department of Commerce, through which small and medium-sized suppliers are helped to develop "lean and clean" manufacturing processes.^[14]

Brands[link]

Eaton's Aerospace Group[link]

Eaton's Aerospace Group is divided into four divisions that provide fuel and hydraulic systems, high pressure, high temperature ducting, fuel and hydraulic tubing conveyance, and cockpit panel and controls to almost every major aerospace platform. The latest platforms include the Boeing 787, Airbus A380, Comac C919, Learjet LJ85, Gulfstream G650 and G450, Lockheed Martin F-35 Joint Strike Fighter, Embraer KC-390, and Sikorsky CH-53K. The aerospace portfolio also includes many legacy aircraft such as the Boeing 737, 747, 757, 767, and 777, Airbus A319, A320, A330 and A340, Lockheed Martin F22 Raptor, and more.

As with Eaton's philosophy, growth through acquisition is also true in the Aerospace business with the acquisitions of Stanley Aerospace, Aeroquip, PerkinElmer Aerospace Businesses, Argo-Tech, and FR-HiTEMP. These acquisitions have provided Eaton with a diverse aerospace portfolio that allows them to provide complete fuel and hydraulic systems.

Hydraulic Systems Division[link]

Eaton provides the Hydraulic Power Generation System and Hydraulic Utility Actuation for the F-35 Lightning II. The HUA provides the primary actuation that converts the STOVL variant from conventional flight to hover and vertical landing. Other HSD programs include Embraer VLJ, Bombardier Learjet-85, Hawker 4000, and CH 53-K.

See Also[link]

• ZF
• Allison
• Cummins
• Dana Corporation

Notes[link]

References[link]

The History of Eaton Corporation 1911–1985
Securities and Exchange Commission

External links[link]

• Official website
• Industrial Filtration Business

• Information about Fluid Power is also available on the National Fluid Power Association web-site nfpa.com