Eaton Corporation plc Business Report FY ended Dec. 2015
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net sales | 20,855 | 22,552 | (7.5) | 1) |
| Operating profit | 3,133 | 3,312 | (5.4) | - |
| Vehicle segment | ||||
| Sales | 3,682 | 4,006 | (8.1) | 2) |
| Operating profit | 645 | 645 | 0.0 | 3) |
Factors
1) Net sales
-In the fiscal year ended December 31, 2015, the Company’s net sales decreased by 7.5% to USD 20,855 million. The negative impact from foreign currency translation decreased sales by approximately 6%, while organic sales decreased by approximately 2% due to weakening demand in several of the Company’s end markets.
2) Vehicle segment sales
-Sales in the Company’s Vehicle segment decreased by 8.1% compared to the previous year to USD 3,682 million in the fiscal year ended December 31, 2015. As organic sales remained flat, the decrease in sales was caused by negative currency effects of approximately 8%. Sales increased in the North American and Asia Pacific markets, but were offset by decreased sales in South American markets.
3) Vehicle segment operating profit
-The operating profit for the Company’s Vehicle segment during the fiscal year ended December 31, 2015, remained steady at USD 645 million compared to the previous year. While the segment’s sales had decreased, this was offset by the increased operating margin increased due to favorable mix, savings from restructuring actions and other cost control measures.
Contracts
-Detroit Diesel Corporation announced that the Detroit DD13 engine is now available as a factory-installed option for select Western Star 4900 car haulers. The engine – which reduces front axle weight and enhances fuel economy – can be specified for 40-inch, 54-inch, and 68-inch ultra low roof sleepers. The DD13 engine has a maximum rating of 470 hp and 1650 lb-ft of torque and is designed specifically for vocational applications. The engine delivers easy serviceability, performance and up to 5% better fuel economy. The new configuration will be available with the Company’s UltraShift PLUS transmission. Production on the 4900 auto hauler with the DD13 engine is scheduled to begin in November 2015. (From a press release on September 16, 2015)
-The Company announced that it is supplying its twin-vortices supercharger for the Volvo T6 Drive-E engine. Volvo's T6 Drive-E powertrain is a 2.0 liter, 4-cylinder, direct-inject engine that combines the Company’s TVS R-410 supercharger with a turbocharger. The supercharger helps the T6 Drive-E perform like a higher displacement engine, producing 302 hp and 295 lb-ft of torque. It is available in the S60 sport sedan and XC60 SUV, and will be available on the all-new XC90 luxury sport-utility vehicle later this year. (From a press release on May 12, 2015)
-The first dual-clutch transmission (DCT) for Class 6 and 7 medium-duty trucks in North America is powered by BorgWarner's DualTronic clutch module. BorgWarner's fuel-efficient technology helps the Company's new Procision 7-speed DCT improve fuel economy by 8 to 10% compared to similarly equipped vehicles with torque converter automatic transmissions. (From a press release on May 5, 2015)
R&D Expenditures |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 625 | 647 | 644 |
-Over the last five years, the Company has invested approximately USD 2.8 billion in research and development.
R&D Facilities
-The Company has engineering, research and development centers dedicated to the automotive industry located in Marshall, Michigan, U.S.; Turin, Italy; Baden-Baden, Germany; Pune, India; and Shanghai, China.
Product Development
High current power inductors
-The Company announced the launch of its automotive grade Coiltronics HCMA Series of high current power inductors to meet and exceed the Automotive Electronics Council's (AEC) Q200 Grade 3 standard with a maximum total temperature operation range from negative 55 degrees to 125 degrees Celsius. The inductors are designed to withstand temperature and shock stresses found in automotive applications to support greater reliability in electronics for ADAS, vehicle control, body control, lighting, infotainment, cluster controls, heating and air conditioning, chassis and safety systems. (From a press release on May 27, 2015)
Single-valve engine brake
-In order to solve the problem of traditional compression brakes becoming less efficient at lower revolutions per minute on downhill slopes, the Company worked with a leading commercial vehicle manufacturer to rapid prototype a single-valve engine brake solution. The solution provided 35% more efficient braking power at lower revolutions per minute, while also using less engine oil and satisfying U.S. carbon dioxide emission regulations.
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | |
| Overall | 506 | 632 | 614 |
| -Vehicle | 119 | 160 | 161 |