Eaton Business Report FY2008
|Financial Overview||(in million dollars)|
|Sales||15,376||13,033||18||-Sales growth of 18% in 2008 over 2007 consisted of 14% from acquisitions of businesses, 3% from organic growth, and 1% from foreign exchange.|
|Gross Profit||4,185||3,651||15||-Primarily due to sales growth of 18%; the benefits of integrating acquired businesses; and continued productivity improvements|
|Sales||1,871||2,142||(13)||-The 13% decrease reflected a 15% decrease in sales volume, partially offset by a 2% increase from foreign exchange.|
|59||234||(75)||-Largely due to the decline in sales volume and
changes in product mix.
-Closure of the Massa, Italy, valve actuation plant resulted in a charge in the fourth quarter of 27 million USD.
|Sales||2,251||2,147||5||-The 5% increase in sales consisted of 2% from organic growth and 3% from foreign exchange.|
|315||357||(12)||-Primarily due to operating inefficiencies related
to the inability to absorb fixed manufacturing
costs resulting from volatile end markets.
-In Jul 2008, the Company announced that its Twin Vortices Series(TM) (TVS(TM)) supercharger has been chosen by Audi to power the automaker's all-new 3.0 liter TFSI V6 engine.
-In Sept. 2008, the Company announced that its fifth generation supercharger will be used to power the 1.4-liter TSI direct-injection engine available in the 2009 Volkswagen Golf.
-In Nov. 2008, the Company announced that its TVS(TM) supercharger has been selected to power Audi's 3.0 liter TFSI V6 engine available in the automaker's new 2010 S4 and S4 Avant.
-In Aug. 2008, the Company and Nittan Valve Co., Ltd. announced that they will jointly set up Nittan Global Tech Co., Ltd. later in Aug. 2008 in order to cater to the new needs and requirements of Japanese and Korean automakers. Nittan will become a majority shareholder of the new entity. Although the Company is the largest shareholder of Nittan by owning 20 percent of its equity, the Eaton-Nittan alliance decided that it would be better that the new venture will be led by Nittan(From an article in the Nikkan Jidosha Shimbun on Aug.7, 2008)
-In Jul. 2008, the Company announced it has acquired the engine valves business of Kirloskar Oil Engines Ltd. The engine valves business of Kirloskar Oil Engines Ltd. employs approximately 500 people in India and had 2007 sales of approximately 5 million USD. The business designs, manufactures and sells intake and exhaust valves for diesel and gasoline engines. (From a press release on Jul 31, 2008)
-In Oct. 2008, the Company announced a decision to close its automotive valve actuation plant in Massa, Italy. The closure is expected to be completed by the end of 2008.
-In 2008, the Company took significant employee reduction actions in 2008, and in January 2009 it took further action. The employee reductions in 2008 and 2009 total approximately 10% of the full-time workforce.
|R&D Expenditures||(in million dollars)|
-Over the past five years, the Company has invested approximately 1.6 billion USD in R&D.
Hybrid Power System
-In Jan. 2008, the Company announced that it introduced its first commercially-available hybrid power system in China with Beiqi Foton Bus Company, deploying the hybrid system in 30 city buses for Guangzhou Yiqi Bus.Beiqi Foton Bus Company and the Company delivered the 30 hybrid diesel-electric transit buses to Guangzhou Yiqi Bus on January 11, 2008. The 30 buses are expected to save fuel up to 27 percent, along with similar reductions in particulate and nitrogen oxide (NOx) emissions.(From a press release on Jan. 14, 2008)
Hybrid Electric Drivetrain Systems
-In Feb. 2008, the Company announced that Coca-Cola Enterprises will purchase 120 new trucks in 2008 powered by the Company's hybrid electric drivetrain systems. The Company employs parallel-type, diesel-electric hybrid architecture with its Fuller UltraShift automated transmission.The new hybrid-electric drivetrain equipped trucks decreased emissions by roughly 32 percent and fuel consumption by up to 37 percent as compared to conventionally-powered trucks in Coca-Cola's current fleet. (From a press release on Feb. 27, 2008)
Twin Vortices Series(TM) Supercharger
-The Eaton TVS is an all-new Roots-type positive displacement supercharger that features twin four-lobe rotors that are twisted 160-degrees. The intermeshing, high-speed rotor design pumps air directly into the engines intake system that when mixed with fuel creates more power. (From a press release on Jul 17, 2008)
-In Sept. 2008, the Company announced that its fifth generation supercharger will be used to power the 1.4-liter TSI direct-injection engine available in the 2009 Volkswagen Golf. The Company partnered with Volkswagen to develop the "twincharger"system. For the European launch, the new Golf offers a choice of four direct-injection gasoline engines, one is equipped with the twincharger system. The system combines Eaton's three lobe Roots-type positive supercharger and single-stage turbocharger. (From a press release on Sep 9, 2008)
-In Jun. 2008, the Company announced that it has signed a memorandum of understanding with South China University of Technology (SCUT). As part of the new partnership, the Company, SCUT and Guangzhou Yiqi Bus Company have launched a joint research program on oil consumption and emission test of hybrid buses on the road of Guangzhou. The Company formally introduced its first commercially available electric hybrid power system in China earlier in 2008 with Guangzhou Yiqi Bus. Under the research agreement, SCUT will take major responsibility for performance testing of the Company's hybrid power system to improve its capability.(From a press release on Jun 12, 2008)
|Capital Expenditure||(in million dollars)|
-Capital expenditures for 2009 are expected to be 250 million USD