Eaton Corp. Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

 (in million dollars) 
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of
change (%)
Sales 22,552 22,046 2.3 -
Operating profit 3,312 3,178 4.2 -
Sales 4,006 3,835 4.5 1)
Operating profit 645 592



-In 2014, net sales increased 4.5% from the year earlier. The sales increase was driven primarily by strong demand in North American and selected Asian Pacific markets, partially offset by weakness in South American markets.


-The Company and Shaanxi Fast Gear Co. Ltd. (SFGW) announced that they have signed a joint venture agreement to support the growing commercial vehicle clutch market in China. The planned joint venture will focus on developing, manufacturing, assembling, testing, selling and servicing clutches and associated clutch components for the commercial vehicle market in China. SFGW, headquartered in Xi'an, Shaanxi Province, China, will own a 51 percent interest in the new joint venture; the Company will own a 49 percent interest. (From a press release on July 24, 2014)

-The Company has signed a framework agreement with Great Wall Motors Co. Ltd. (GWM) to create a long-term strategic partnership that drives growth for both companies through greater technical exchange and resource sharing. The Company has been a supplier to Great Wall since 2004, providing locking differentials, fuel vapor valves, engine valves and valve actuation components. The Company's MLocker mechanical locking differential is installed in GWM's first premium pickup truck – the new Wingle 6 – and the EGerodisc electronic differential will be offered on Great Wall sport-utility vehicles for the 2015 model year. (From a press release on May 14, 2014)


Customer Vehicle Product
Great Wall Motors New premium pickup truck "Wingle 6" "MLocker" mechanical locking differential
Great Wall Motors 2015 SUV "EGerodisc" electronic differential
PACCAR MX-13 engine powered truck "Fuller Advantage Series" automated 10-speed transmissions
Volvo Trucks All "VNL Series" models "SmartAdvantage" Powertrain
Audi "S5" 3.0L TFSI V-6 Superchargers (Twin Vortices Series : TVS)
GM Chevrolet "Corvette" 6.2L LTI V-8
Valve actuation (cylinder deactivation system)
Audi "S5" 3.0L TFSI V6 Valves
BMW "535d" 3.0L N57 I6 Valves
GM Chevrolet "Corvette" 6.2L LTI V8 Valves
Ford "Fiesta" 1.0L EcoBoost I3 Valves
Honda "Accord" 3.5L SOHC V6
Chrysler Ram "1500 Crew Cab" 3.0L RA630 V6 Valves


-The Company has been named a "Top Supplier" by Cummins Inc. for its Technology Contribution on the SuperTruck program and SmartAdvantage integrated powertrain product. Cummins, the Company and Peterbilt Motors Co. are partners on the SuperTruck project, which includes the development and demonstration of a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic tractor and trailer combination and a lithium-ion auxiliary battery power unit to reduce engine idling. The Company has supplied advanced transmissions for the project. (From a press release on May 15, 2014)

-The Company announced that it received "Best supplier" awards from Chery, Dongfeng Cummins Engine Co. and Beijing Foton Cummins Engine Co. in 2014. (From a press release on May 14, 2014)

R&D Expenditures

 (in million dollars)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 647 644 439


R&D Facilities

-In April 2014, the Company announced that it has established Vehicle Group Asia Pacific Technical Center in Shanghai. The new technical center will develop energy-efficient power management solutions for passenger and commercial vehicles. These technologies will include engine valves, valve drive units, superchargers, transmission systems, clutches and hybrid system for vehicles sold in China. (From news releases issued by multiple sources on May 12, 2014)

New Products

-The Company has introduced Procision, a new line of medium-duty dual clutch transmissions, that delivers 8 to 10 percent better fuel economy than a similarly equipped vehicle with a torque converter automatic. Scheduled to be available in the North American market mid-year in 2015 and available globally in the future, the new 7-speed transmissions for class 6 and 7 medium-duty trucks feature a dual clutch design and electronic shifting that uses grade, vehicle weight and throttle input to provide optimal fuel efficiency and smooth, continuous delivery of torque to a vehicle's wheels under all shift conditions. (From a press release on September 4, 2014)

Capital Expenditure

 (in million dollars) 
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 632 614 593
Vehicle 160 161 148

Investments in U.S.

-The Company has announced its U.S. Engine Valve (USEV) joint venture with Nittan Valve Company, Ltd. will invest USD 40 million in engine valve manufacturing facilities in South Carolina and Nebraska over the next five years. The investment will result in the creation of up to 150 new jobs by 2016. Between 2013 and 2017, USEV will invest nearly USD 34 million in a 38,000 square-foot expansion, and new valve machining equipment and forge presses for its Westminster, S.C. facility. The Westminster facility expansion is underway and scheduled to be completed March 2014. USEV will invest an additional USD 6 million in the Company's Kearney, Neb. facility to support expanded valve production. (From a press release on February 6, 2014)