Posted December 20, 200717 yr Great news for Cleveland's largest revenue earner. Thanks Tel Aviv for the news! ------------------------------------------------------------------- http://www.marketwatch.com/news/story/eaton-corp-plans-2-deals/story.aspx?guid=%7B4401307B-C805-49E3-BE81-4A3D30565B50%7D Eaton Corp. plans 2 deals valued at as much as $2.8 bln By Robert Daniel Last update: 3:47 a.m. EST Dec. 20, 2007 TEL AVIV (MarketWatch) - Eaton Corp., (ETN 89.42, +0.31, +0.4%) the Cleveland manufacturer of industrial equipment, announced on Thursday two acquisitions -- one in Europe and one in Asia -- valued at as much as $2.8 billion. The deals will add about $2 billion of annual sales, boosting its electrical business's annual sales to more than $7.5 billion, the company said in a statement. The bigger one is Moeller Group, a Bonn, Germany, supplier of parts for commercial and residential building applications, for which Eaton has agreed to pay 1.55 billion euros, about $2.23 billion. Employing 8,700 people, Moeller estimates 2007 earnings before interest, taxes, depreciation and amortization of $245 million on sales of $1.47 billion. Subject to regulatory clearances and other conditions, Eaton hopes to close the deal in the first quarter. Eaton also said it would offer to buy all shares of Phoenixtec Power Co., a Taipei producer of uninterruptible power-supply systems. Eaton's offering T$50 (US$1.54) a share for Phoenixtec; a purchase of all the shares would be valued at US$565 million. Eaton said it has commitments from holders of 25% of Phoenixtec to tender their shares to the offer. Phoenixtec, which employs 5,800, estimates Ebitda for 2007 at US$52 million on sales of US$595 million. Closing conditions include a minimum of 51% of the Taiwan company's shares must be tendered to the offer.
January 24, 200817 yr http://www.reuters.com/article/tnBasicIndustries-SP/idUSWNAS703320080122 Eaton 4th-quarter profit rises 6 percent Tue Jan 22, 2008 7:20am EST NEW YORK (Reuters) - Diversified manufacturer Eaton Corp (ETN.N: Quote, Profile, Research) posted a higher quarterly profit on Tuesday, citing strength in its electrical and fluid power businesses and a lower tax rate. Net income in the fourth quarter rose 6 percent $256 million, or $1.71 a share, from $241 million, or $1.59 a share, a year earlier. Excluding one-time items, the Cleveland, Ohio-based company earned $1.79 a share. Analysts' average forecast was $1.73 per share before one-time items, on sales of $3.28 billion, according to Reuters Estimates. In October, the maker of everything from electrical switch boards to truck transmissions forecast a net profit of $1.60 to $1.70 a share. Before one-time items, it expected $1.65 to $1.75 a share. (Reporting by Nick Zieminski; editing by John Wallace)
April 9, 200817 yr Eaton is still expanding globabally--from Forbes: --------------------------------------------------------------------------------------- Eaton Gets Chinese Bus Contract Associated Press 04.09.08, 12:40 PM ET NEW YORK - Diversified industrial manufacturer Eaton Corp. said Wednesday that Guangzhou Armada Development Corp. and Guangzhou Yiqi Bus Co. have agreed to buy 207 diesel-electric hybrid power systems for buses to be used in the Chinese city of Guangzhou. Financial terms were not disclosed. The purchase is in addition to the initial installation of 30 Eaton hybrid-powered buses announced in January as part of a U.S. Department of Commerce trade mission earlier this year, Eaton said. The buses will be placed into passenger service throughout the year. The purchase marks Eaton's largest single hybrid power systems order to date, the company said. Shares of Cleveland-based Eaton slipped $1.09 to $80.10 in midday trading. http://www.forbes.com/feeds/ap/2008/04/09/ap4871390.html
April 9, 200817 yr Shares of Cleveland-based Eaton slipped $1.09 to $80.10 in midday trading. Huh?? I swear, I will never understand the stock market.
April 14, 200817 yr More positive news on Eaton...sorry I own stock in them so I keep reporting: ---------------------------------------------------------------------------------------------- April 14, 2008 Eaton Sales Grow 12% in First Quarter Diversified industrial manufacturer Eaton Corp., Cleveland, OH, reported sales for the first quarter 2008 were $3.5 billion, 12% above the same period in 2007. Profit was $247 million. Sales growth was the results of 2% organic growth, 6% from acquisitions and 4% from higher exchange rates. End markets for Eaton grew 2%. Eaton reported it anticipated growth of 4% in its end markets in 2008, with international markets "modestly stronger" than expectations in January and U.S. markets "slightly weaker." Sales for the Electrical segment were $1.3 billion, up 20% over 2007. This includes 11% growth from acquisitions. Eaton reported end markets in electrical grew 7% in both U.S. and non-U.S. markets. Hydraulics segment sales were $657 million, up 14% compared to the first quarter of 2007. Global hydraulics markets were up 4% in the quarter, with non-U.S. markets up 8% while U.S. markets were flat. Aerospace segment sales were $430 million, 23% above the first quarter of 2007. The growth in sales includes 11% from acquisitions. Eaton's aerospace markets grew 6% compared with the first quarter of 2007. The Truck segment posted sales of $567 million, down 2% compared to the first quarter of 2007. Truck markets in the first quarter were down 9%, with U.S. markets down 24% and non-U.S. markets up 17%. http://www.mdm.com/issues/1_1/breaking-news/5141-1.html
April 14, 200817 yr Probably a good stock to own over the long haul. I haven't done any financial research on them but their solid expertise in hydraulics should serve them well for creating a formidable hybrid industry. If you don't know what I'm talking about check out this: http://www.designnews.com/article/CA6549294.html?industryid=43651#_self If you can't bear to read the whole article click on pic #2 on the bottom for a graphical representation of what a passat diesel with this hydraulic system installed can do.
May 17, 200817 yr Eaton addition will mix showcase, workplace By Ron DaParma TRIBUNE-REVIEW Saturday, May 17, 2008 When Eaton Corp.'s $24 million headquarters expansion opens in Moon this August, it will be as much of a showplace for the company's energy-saving electrical products as it will be a workplace for about 850 employees. That includes about 100 employees added since the beginning of 2007, officials said. Touting its energy-saving products is one way Eaton hopes to continue growing its $8 billion (2007 revenue) electrical business, said Mike Longman, vice president of marketing and powerchain management for Eaton Electrical Group, during a tour of the Friday of the addition, which is still under construction. More at http://www.pittsburghlive.com/x/pittsburghtrib/business/s_567941.html
May 17, 200817 yr They put the offices of an energy-efficiency division in the auto-centric suburbs of Moon Township? OK. Makes about as much sense as Cleveland Clinic not hiring smokers, yet building shitloads of parking decks everywhere so more people can drive to work. I love this country. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
October 2, 200816 yr Two good news stories coming out of Eaton after all the negative press recently: Eaton gives University Hospitals $1M grant By SHANNON MORTLAND 3:02 pm, October 1, 2008 University Hospitals has received from Eaton Corp. a $1 million grant for its Vision 2010 plan. The Cleveland-based power management company provided the grant to help UH complete its $1.2 billion renovation and construction plan, which includes building the new Ahuja Medical Center in Beachwood and a new cancer hospital on the main campus. [MH Note: funding even more constrution in Beachwood! geez! :wink:] More at http://www.crainscleveland.com/article/20081001/FREE/810018348/1007/newsletter01 ------------------------------------------------------- Eaton acquires UK hydraulics company 9:10 am, October 2, 2008 Diversified industrial manufacturer Eaton Corp. (NYSE: ETN) said it has bought Integ Holdings Limited, the parent company of Integrated Hydraulics Ltd., a United Kingdom manufacturer of screw-in cartridge valves, custom-engineered hydraulic valves and manifold systems. Terms of the deal were not disclosed. More at http://www.crainscleveland.com/article/20081002/FREE/810025539/1090/newsletter01
January 20, 200916 yr From crainscleveland.com: Eaton to lay off more than 5,000 employees worldwide By DAN SHINGLER 11:00 am, January 20, 2009 Cleveland-based Eaton Corp. (NYSE: ETN) said it’s laying off more than 5,000 people, or more than 6% of its work force, as a result of the global economic slowdown. “We are reducing our global staffing level by about 5,200,” said Eaton spokeswoman Kelly Jasko. “This is a global impact, and the reason for it is to further align our cost structures with the weakening markets that we compete in.” The layoffs will include about 60 employees at Eaton’s five locations in and around Cleveland, where the company employs about 800 people, Ms. Jasko said. Employees will be told in the next few weeks whether their jobs are being cut; those affected will receive severance pay, the opportunity to continue their benefits and outplacement services, Ms. Jasko said. More at http://www.crainscleveland.com/article/20090120/FREE/901209969 clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
February 25, 200916 yr There was an article about Eaton's proposed move on the front page of Crains this week, which mentioned that the company, according to downtown circles, is considering staying put downtown rather than moving in a down economy. Though it's just a rumor, that would be nice!! Can anyone post the article?
February 25, 200916 yr There was an article about Eaton's proposed move on the front page of Crains this week, which mentioned that the company, according to downtown circles, is considering staying put downtown rather than moving in a down economy. Though it's just a rumor, that would be nice!! Can anyone post the article? I hope it's true. I was wondering how that would pan out with things being as they are.
February 25, 200916 yr There was an article about Eaton's proposed move on the front page of Crains this week, which mentioned that the company, according to downtown circles, is considering staying put downtown rather than moving in a down economy. Though it's just a rumor, that would be nice!! Can anyone post the article? I hope it's true. I was wondering how that would pan out with things being as they are. 1. I wonder if they can get get together a financial package, in this economy. and can Beachwood really give them all these breaks. The malls aren't bringing in the cash they once did.
February 25, 200916 yr There was an article about Eaton's proposed move on the front page of Crains this week, which mentioned that the company, according to downtown circles, is considering staying put downtown rather than moving in a down economy. Though it's just a rumor, that would be nice!! Can anyone post the article? I hope it's true. I was wondering how that would pan out with things being as they are. 1. I wonder if they can get get together a financial package, in this economy. and can Beachwood really give them all these breaks. The malls aren't bringing in the cash they once did. Good point. I'm sure tax breaks and financing is a big issue here.
March 1, 200916 yr ^Yes, but the incentives don't involve any cash outlays by Beachwood, so I don't think the economic conditions will impact their approach much. Plus, many of the incentive are from the state and Port Authority. From the PD, here are the disgusting details: Eaton Corp. offered about $90 million to move to Cleveland suburbs http://blog.cleveland.com/business/2009/03/eaton_corp_offered_about_90_mi.html
June 30, 200915 yr Apparently there's a Crain's article? http://www.smartbrief.com/news/opei/storyDetails.jsp?issueid=01BF5BF5-07DF-4589-966F-E978A4F05D17©id=0EEB1CD1-6967-49C1-8724-ED1DF99B8F64 Eaton Corp. estimates $500M benefit from stimulus package OPEI SmartBrief | 06/30/2009 Eaton Corp., Parker Hannifin Corp. and Timken Co. are three industrial companies in Northeast Ohio that stand to benefit from the economic-stimulus package. Eaton estimates the stimulus spending will add $500 million annually to the company's top line for the next two years. "In terms of the U.S. stimulus bill, you've seen that one of the very big areas of spending is upon energy efficiency in buildings," said Alexander M. Cutler, chairman and chief executive officer of Eaton. Crain's Cleveland Business (06/29)
July 8, 200915 yr Eaton forms Middle East JV Posted on July 8, 2009 at 4:11 PM Eaton Corp. (NYSE:ETN) has expanded its Middle East presence with a power generation joint venture in the United Arab Emirates. The diversified industrial manufacturer, which already provides power distribution systems and truck components in the region, created the JV through an investment in SEG Middle East Power Solutions & Switchboard Manufacture LLC, which makes low-voltage switchboards and control solutions. Terms were not disclosed. More at http://www.thedeal.com/corporatedealmaker/2009/07/eaton_corp_forms_middle_east_j.php
July 20, 200915 yr Eaton Posts 91% Drop in Profit, Pares Outlook JULY 20, 2009, 12:13 P.M. ET Eaton Corp.'s second-quarter profit plunged 91% as the company's exposure to the slumping automotive and commercial truck markets continued to weigh on sales and profits. The diversified industrial manufacturer slashed its 2009 earnings outlook for the second straight quarter, predicting it will earn $2 to $2.20 a share in 2009, down from $2.50 to $3 forecast previously. Nevertheless, the forecast is above Wall Street analysts' latest view of $1.90 a share for the year, according to Thomson Reuters. The company projected third-quarter earnings of 90 cents to $1 a share; analysts, on average, expect 89 cents a share. More at http://online.wsj.com/article/SB124810525476265473.html?mod=googlenews_wsj
October 20, 200915 yr Um, OUCH!?!?! From cleveland.com Eaton Corp. might have to pay billions of dollars in damages after losing an antitrust case By Robert Schoenberger, The Plain Dealer October 19, 2009, 6:04PM Eaton Corp. has monopolized the market for commercial truck transmissions, a Delaware jury found last week, and the company could face paying billions of dollars in damages to a competitor. A subsidiary of auto parts supplier ArvinMeritor claims it could have made $800 million selling automatic transmissions for commercial big rig trucks. But when it started gaining share at the start of this decade, Eaton responded by locking all of the major truck builders into long-term, exclusive contracts that effectively locked Meritor's products out, the company says. More at http://www.cleveland.com/business/index.ssf/2009/10/eaton_corp_might_have_to_pay_b.html clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
October 20, 200915 yr Um, OUCH!?!?! From cleveland.com Eaton Corp. might have to pay billions of dollars in damages after losing an antitrust case By Robert Schoenberger, The Plain Dealer October 19, 2009, 6:04PM Eaton Corp. has monopolized the market for commercial truck transmissions, a Delaware jury found last week, and the company could face paying billions of dollars in damages to a competitor. A subsidiary of auto parts supplier ArvinMeritor claims it could have made $800 million selling automatic transmissions for commercial big rig trucks. But when it started gaining share at the start of this decade, Eaton responded by locking all of the major truck builders into long-term, exclusive contracts that effectively locked Meritor's products out, the company says. More at http://www.cleveland.com/business/index.ssf/2009/10/eaton_corp_might_have_to_pay_b.html $2.4 billion? I can only imagine what having to pay the equivalent of almost 2.5 times their 2008 profit would do to the HQ relocation plans...
October 20, 200915 yr ^One could only hope... what's crazy is that they are being offered more from the State to move to Beachwood than they were offered to stay in the city. Go figure.
September 27, 201014 yr Eaton continues to grow: Eaton Corp. to buy CopperLogic Inc. Published: Monday, September 27, 2010, 2:01 PM Janet Cho, The Plain Dealer CLEVELAND, Ohio - Eaton Corp., a diversified power management company serving construction, aerospace and vehicular industries, on Monday announced its plans to acquire CopperLogic Inc., a manufacturer of electrical and electromechanical systems. http://www.cleveland.com/business/index.ssf/2010/09/eaton_corp_to_buy_copperlogic.html
May 21, 201213 yr So moving from Downtown to Beachwood wasn't good enough it seems...loads of taxes will be "saved" by having the incorporation in Dublin, Ireland. Eaton Corp. plans to merge with Ireland's Cooper Industries in a $11.8 billion deal Published: Monday, May 21, 2012, 9:36 AM Updated: Monday, May 21, 2012, 11:31 AM By Robert Schoenberger, The Plain Dealer Eaton Corp. Chairman and Chief Executive Alexander Cutler said his company's planned merger with Ireland's Cooper Industries should generate increased profits within the first year of the $11.8 billion deal. CLEVELAND, Ohio -- Eaton Corp. announced today that it plans to merge with Cooper Industries, an Irish supplier of electrical components and tools, in a $11.8 billion deal. If the merger clears approvals, Eaton's current shareholders would own 73 percent of the new company with Cooper shareholders owning the remaining 27 percent. The company's incorporation would shift from Ohio to Ireland, but Eaton officials said its headquarters would remain in Northeast Ohio. Eaton is in the process of building a new headquarters facility in Beachwood. http://www.cleveland.com/business/index.ssf/2012/05/eaton_corp_plans_to_merge_with.html
May 21, 201213 yr Yeah this morning that news gave me a stomach ache, but they were not yet indicating anything about the headquarters (which they are now saying would remain in NEO). Still, amazing the lengths to avoid taxes, no matter how many handouts they receive. Wonder if there will be any benefit at all to NEO?
May 21, 201213 yr Well, maybe we can get a Cleveland-Dublin flight out of this :) Given that Cooper does 60% of its sales within the US, I would assume they have some employees in the US. Maybe they would shift some of their US offices/workers to NE Ohio.
May 21, 201213 yr It sounds like they plan on keeping the HQ here (good luck for NEO that they just started building there new HQ here), I would assume most of the corporate jobs would stay with the HQ. With Ireland's economy in the shambles, austerity planning currently, I wonder if there corporate taxes will stay that low.
May 22, 201213 yr I've flown overseas six times, and twice I've sat next to people coming to Cleveland to do business with Eaton. One woman was from the UK and the other from Ireland. Both said they regularly come to Cleveland on Eaton business. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 3, 201411 yr Eaton no longer makes the list as a Fortune 500 company for Cleveland/Ohio. http://fortune.com/fortune500/ So Dublin, Ireland HQ it is? On top of that, it seems Key Bank has slipped off the Fortune 500 (plus of course the loss of National City). Loss of 3 Fortune 500's since 2008...ouch.
June 4, 201411 yr Yes, they're an Irish company now that they've completed their merger with Cooper. That's what happens when a company reincorporates abroad for tax shelter reasons. It isn't limited to Cleveland and will continue happening, even if we do eventually overhaul the outdated tax code. Ireland and other locales, usually one or two per major region of the world, offer such an incredibly good deal that large international companies cannot pass it up.
June 4, 201411 yr A good example why you can never, ever rely on tax incentives - or tax revenues - as a long range strategy.
June 5, 201411 yr A good example why you can never, ever rely on tax incentives - or tax revenues - as a long range strategy. Too bad so many politicians are too scared to tell a major employer "no." "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 5, 201411 yr I get the resentment towards companies like Eaton that abandon downtown for other places, and for the tax maneuvering, but what do you want them to do? Eaton is run by a pretty bottom-line focused group of execs, which is hardly unusual, they never particularly benefited from being downtown, and the tax benefits are obvious. We can whine about it being unpatriotic to stash profits offshore, and the corporations can trot out lawyers and execs to complain about being complained about, and nothing changes - unless we reform the corporate tax code. It was an election issue, briefly, and has been forgotten. I had hoped it would be part of the fiscal cliff compromise, but it wasn't. It's mind-blowing that this hasn't happened. There are obvious, clear, benefits for all parties involved - it would have a real impact on companies doing this sort of thing. It is not cheap to do, it is very complicated, expensive, and troublesome, but when you can recoup that expense in just a few years, yeah, you're gonna do it. By the way, I've been to Eaton's new place - it's awesome. Nobody there is pining away for downtown or desperately wishing they'd somehow located in the Flats. They had extra room to throw up their own A Loft and a fitness center, everyone gets free parking, scenic grounds, etc, etc. I'm not defending Eaton for either decision and I'd prefer they'd have gone downtown with a fancy new HQ, but I have trouble imagining how they would be convinced to act differently.
June 5, 201411 yr ^How did the office move to the burbs benefit the bottom line? Honest question. I don't resent them for moving, but this sounded much more like a lifestyle decision for management than anything else.
June 5, 201411 yr Sorry, I was unclear - the Ireland thing is bottom line focused. The move was probably lifestyle focused. If it benefits them financially, I don't know how. Employee satisfaction, maybe?
February 16, 20169 yr Eaton sucks too. First they move out of downtown Cleveland while most companies are moving downtown to attract young talent. Now this: 100+ workers, many skilled, losing jobs at Berea hydraulics plant as #Eaton moves work to Mexico @CrainsCleveland https://t.co/RLBCBqK8FR "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
February 16, 20169 yr Eaton sucks too. First they move out of downtown Cleveland while most companies are moving downtown to attract young talent. Now this: 100+ workers, many skilled, losing jobs at Berea hydraulics plant as #Eaton moves work to Mexico @CrainsCleveland https://t.co/RLBCBqK8FR So Mexico is clearly the new China. Quite a few companies have announced it in the last couple of months.
February 16, 20169 yr China was the new Mexico, not to be confused with New Mexico. Now China's a mess, so it makes some sense that Mexico is benefiting from our businesses never ending desire to undercut their employees (and therefore their own consumers).
February 16, 20169 yr China was the new Mexico, not to be confused with New Mexico. Now China's a mess, so it makes some sense that Mexico is benefiting from our businesses never ending desire to undercut their employees (and therefore their own consumers). You guys aren't thinking of the bigger picture. This is simply financial good sense. Just wait and see....we'll have a few more wars. Eaton stock will go up. Everyone benefits!
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