Eaton Corporation

Last updated

Eaton Corporation plc
Company type Public limited company
ISIN IE00B8KQN827
Industry Conglomerate
Founded1911;113 years ago (1911)
Founders
HeadquartersEaton plc: Dublin, Ireland Eaton Corp: Beachwood, Ohio
Area served
Worldwide
Key people
Craig Arnold (Chairman, President & CEO), Olivier Leonetti (CFO), Heath Monesmith (President & COO Electrical Sector), Paulo Ruiz (President & COO Industrial Sector)
RevenueIncrease2.svg US$20.75 billion (2022)
2,911,000,000 United States dollar (2022)  OOjs UI icon edit-ltr-progressive.svg
Increase2.svg US$2.46 billion (2022)
Total assets Increase2.svg US$35.01 billion (2022)
Total equity Increase2.svg US$17.01 billion (2022)
Number of employees
85,000 (2022)
Divisions Electrical Sector
Industrial Sector
- Aerospace
- Filtration
- Golf Pride
- Vehicle
- eMobility
Website eaton.com
Footnotes /references
[1]

Eaton Corporation plc is an Irish/American [2] multinational power management company, founded in the United States [3] and incorporated in Dublin, Ireland, [4] with a primary administrative center in Beachwood, Ohio. [5] Eaton has more than 85,000 employees and sells products to customers in more than 175 countries. [6]

Contents

History

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 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. In 1958 Eaton Corporation acquired Fuller Manufacturing. 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. In 1978, Eaton Corporation acquired Samuel Moore & Company, Kenway Systems, and Cutler-Hammer. [7] [8] [ citation needed ]

Current work

Eaton's businesses are divided into the following sectors:

Electrical

The electrical sector's products include circuit breakers, switchgear, busway, UPS systems, power distribution units, panel boards, load centers, motor controls, meters, sensors, relays, PLCs, HMIs, and inverters. The main markets for the Electrical Americas and Electrical Rest of World segments are industrial, institutional, government, utility, commercial, residential, information technology and original equipment manufacturer customers.

Aerospace

For the aerospace industry, Eaton manufactures and markets a line of systems and components for hydraulic, fuel, motion control, pneumatic systems and engines.

Mobility

The Mobility Group comprises the company's Vehicle and eMobility segments, including the Roadranger division providing: [9]

The truck segment is involved in the design, manufacture and marketing of powertrain systems and other components for commercial vehicle markets. Key products include manual and automated transmissions, clutches, [11] drive-line components, and hybrid power.

Eaton's automotive segment produces products such as superchargers, engine valves, valve train components, cylinder heads, locking and limited-slip differentials, heavy-duty drive-line components, fuel, emissions, and safety controls, transmission and engine controls, spoilers, exterior moldings, plastic components, and fluid connectors.

The eMobility sector combines elements of Eaton's electrical and vehicle businesses to deliver electric vehicle solutions to passenger car, commercial vehicle and off-highway OEMs.

Acquisitions and divestments

In one of Eaton's largest acquisitions, the company purchased the Westinghouse Distribution and Controls Business Unit in 1994. [12] 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 spun off its semiconductor manufacturing equipment business as Axcelis Technologies in 2000.

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, Bill and Elek under the Eaton nameplate [13] 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. [14] This was followed in 2004 by the acquisition of Powerware. [15] 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. [16] Shortly after, it added Pulizzi Engineering Inc., a manufacturer of mission critical power distribution based in Santa Ana, California. [17] 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. [18]

On 21 May 2012, Eaton announced that they had agreed to purchase Ireland-based Cooper Industries in a cash-and-stock deal valued at about $11.46 billion. The new company is called Eaton Corporation plc and is incorporated in Ireland. Then-Chairman and CEO of Eaton Alexander Cutler headed the new corporation. Cooper shareholders received $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 18 May 2012, and is 29% above Cooper's closing stock price. [19] Eaton Corporation plc completed its acquisition of Cooper Industries on 30 Nov 2012. The $13 billion acquisition of Cooper (US$5.4B Sales revenue (2011)), became the largest in Eaton's (US$16B Sales Revenue (2011)) 101-year history. [20]

On 17 Mar 2021, Eaton completed the acquisition of Tripp Lite for $1.65 billion. President and COO of Electrical Sector, Eaton Uday Yadav said "The acquisition of Tripp Lite will enhance the breadth of our edge computing and distributed IT product portfolio and expand our single-phase UPS business." The acquisition will further Eaton's access to the consumer market in which Tripp Lite has a strong position. [21]

Eaton's hydraulics business, manufacturing systems and components for the agriculture, construction, mining, forestry, utility, material handling, machine tools, molding, power generation, primary metals, and oil and gas markets, was acquired by Danfoss in August 2021 for $3.3 billion. [22]

Headquarters

From 1920s-1964 Eaton was based on East 140th Street in Cleveland, Ohio. In 1964, the company moved its headquarters into the new Erieview Tower where it remained until 1983. In that year, Eaton Corporation moved into a 28-story Cleveland office tower which was renamed for it. [23] Eaton relocated to its new 580,000 square foot facility, named Eaton Center, in Beachwood, Ohio in early 2013. [24] They reincorporated, as a means of reducing their U.S. corporate tax burden, in Ireland as part of the Cooper merger involved establishing a registered head office in Dublin, Ireland but operational headquarters remain in Beachwood.

Controversies

Racial harassment

In 1995, Eaton Corp had to pay $1.25M in restitution to a former employee who had been subject to racial harassment. Incidents included food being thrown on his desk, food being thrown through the roof of his car, use of the word 'nigger', and the presence of neo-nazi flyers at Eaton Corp. [25] The employee developed psychological problems and slipped into homelessness shortly after being fired.

In 2020, an employee sued Eaton Corp for retaliation and facilitating a climate of racial harassment. After a profane outburst from a fellow worker, the plaintiff was assigned to work and train under a supervisor who abused him psychologically. The supervisor made frequent use of the N-word, made reference to slavery and lynching, and claimed his job was to get rid of black workers. [26] The employee informed management of his hostile work environment, but management responded by disciplining the plaintiff himself.

Long-term benefits

Back when Eaton Corp was struggling with bankruptcy, various employees on long-term benefits suddenly found themselves terminated. [27] Eaton had failed to insure the plan that the employees had nonetheless paid for. This led to numerous suits against Eaton. [28] [29] [27]

Tax avoidance

In 2012, the acquisition of Cooper Industries made it possible for Eaton Corp to become an Irish company, which would sharply lower its corporate tax rate. [30] The move was later denounced by both President Obama and President Donald Trump. [31]

Triumph Group

In 2004, Eaton Corp sued Triumph Group for trade secrets theft, but when it was discovered that the company’s lawyers were paying former Hinds County District Attorney Ed Peters to improperly influence then-Hinds County Circuit Judge Bobby DeLaughter, the defendants countersued. In 2014, Eaton Corp paid $135M to Triumph Group and $13M to six former employees to settle the long-running legal dispute. Judge Bobby DeLaughter was sentenced to 18 months in prison. [32] [33]

Corporate recognition and rankings

Recognitions include the following:

See also

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References

  1. ↑ "Eaton Corporation plc 2022 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. 23 February 2023.
  2. ↑ "A Brief but Sad History of Selected Corporate Inversions".
  3. ↑ https://www.eaton.com/us/en-us/company/about-us/our-heritage.html [ bare URL ]
  4. ↑ "Eaton Corp.'s purchase of Cooper Industries is complete". December 2012.
  5. ↑ "Eaton Corp. to complete move to new Beachwood campus by Feb. 18". Crain's Cleveland Business. 6 February 2013. Retrieved 9 May 2019.
  6. ↑ "About us".
  7. ↑ "Cutler-Hammer". Archived from the original on 1 May 2019. Retrieved 10 December 2016.
  8. ↑ http://www.manufacturingnews.com/subscribers/users_orig.cgi?mfgnews_username=mbg&flag=read_article&id_title=1&id_article=581&id_issue=34&id_sub=459&id_sl= [ permanent dead link ]
  9. ↑ "Roadranger". Eaton. Retrieved 5 December 2019.
  10. ↑ "Hybrid Electric Vehicle Systems Overview". Eaton. Retrieved 5 December 2019.
  11. ↑ "Clutches for linehaul and vocational trucks". Eaton. Retrieved 5 December 2019.
  12. ↑ "History Timeline". Eaton Corporation. Archived from the original on 24 January 2012. Retrieved 15 January 2012.
  13. ↑ Dale Funk (1 January 2003). "Eaton buys Delta plc's electrical division based in United Kingdom". Electrical Wholesaling. Archived from the original on 14 February 2012. Retrieved 15 January 2012.
  14. ↑ "Cutler-Hammer in joint venture between Eaton, Caterpillar". The Business Journal (Milwaukee). bizjournals.com. 5 August 2003. Retrieved 15 January 2012.
  15. ↑ "Eaton Completes Purchase of Powerware" (Press release). Eaton Corporation. 9 June 2004. Retrieved 15 January 2012.
  16. ↑ "Eaton Announces Acquisition of Aphel Technologies Limited" (Press release). Eaton Corporation. 5 April 2007. Retrieved 15 January 2012.
  17. ↑ "Eaton Expands Power Quality Offerings With Acquisition of Pulizzi Engineering" (Press release). Eaton Corporation. 19 June 2007. Retrieved 15 January 2012.
  18. ↑ "Eaton To Acquire MGE's Small Systems Business From Schneider Electric" (Press release). Eaton Corporation. 21 June 2007. Retrieved 15 January 2012.
  19. ↑ Detroit Free Press, Tuesday, 22 May. 2012, page 3C
  20. ↑ "Eaton completes $11.46B deal for Cooper Industries - Businessweek". Archived from the original on 1 December 2012. Retrieved 3 December 2012.
  21. ↑ "Eaton completes the acquisition of Tripp Lite, expanding Eaton's power quality business in the Americas".
  22. ↑ "Danfoss Formally Completes US$3.3 Billion Acquisition of Eaton's Hydraulics Business". Business Wire. Retrieved 20 August 2021.
  23. ↑ "Eaton Center". Emporis. Archived from the original on 17 October 2012. Retrieved 15 January 2012.
  24. ↑ Grant Gravagna (2 February 2013). "Eaton Corporation Relocated World Headquarters to Beachwood; Puts City on Map for Economic Development". bcomber.org. Retrieved 3 February 2013.
  25. ↑ Twitter (22 April 1995). "Vindication, at Long Last : Ex-Employer Must Pay Homeless Man $1.25 Million for Racial Harassment". Los Angeles Times. Retrieved 6 February 2022.{{cite web}}: |last= has generic name (help)
  26. ↑ Breslin, John. "Company faces serious allegations of racial harassment and retaliation". Madison - St. Clair Record. Retrieved 6 February 2022.
  27. 1 2 "Outward v. Eaton Corp. Disability Plan for U.S. Emps., No. 19-3365 | Casetext Search + Citator". casetext.com. Retrieved 6 February 2022.
  28. ↑ "Evans v. Eaton Corporation Long Term Disability Plan, C.A. No. 8:05-2575-HMH | Casetext Search + Citator". casetext.com. Retrieved 6 February 2022.
  29. ↑ "FindLaw's United States Fourth Circuit case and opinions". Findlaw. Retrieved 6 February 2022.
  30. ↑ "Ireland-bound Eaton is latest to end U.S. corporate citizenship". Reuters. 22 May 2012. Retrieved 6 February 2022.
  31. ↑ Monica, Paul R. La (3 February 2017). "Company that Trump bashed isn't backing down". CNNMoney. Retrieved 6 February 2022.
  32. ↑ "$135 Million Settlement Payment from Eaton to Triumph in Now Legendary Mississippi (and ultimately North Carolina) Trade Secrets Row | Graebe Hanna Sullivan PLLC". Archived from the original on 8 May 2021. Retrieved 6 February 2022.
  33. ↑ "Eaton To Pay $147.5M To Settle Trade Secrets Dispute". Manufacturing.net. 19 June 2014. Retrieved 6 February 2022.
  34. ↑ "Eaton Places Fourth Among" (Press release). Eaton Corporation. 16 April 2013.
  35. ↑ "Eaton Recognized for Leadership" (Press release). Eaton Corporation. 9 October 2013.
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