Investor Presentaiton
Hydraulics
On August 2, 2021, Eaton completed the sale of the Hydraulics business segment. For 2021 and 2020, the Hydraulics
segment generated net sales of $1,300 million and $1,842 million, respectively, and operating profit of $177 million and $186
million, respectively.
Aerospace
(In millions)
Net sales
Operating profit
Operating margin
Changes in Net sales are summarized as follows:
Organic growth
Acquisition of Mission Systems
Foreign currency
Total increase in Net sales
2022
Change
from 2021
2021
Change
from 2020
$ 3,039
15 % $ 2,648
2020
19 % $ 2,223
$
705
22 % $
580
40 % $
414
23.2 %
21.9 %
18.6 %
2022
11 %
8%
(4)%
15 %
2021
(2)%
20 %
1 %
19 %
The increase in organic sales in 2022 was primarily due to strength in sales to commercial OEM and aftermarket. The
decrease in organic sales in 2021 was primarily due to the impact of continued travel restrictions from the COVID-19 pandemic
on commercial aviation and weakness in military aftermarket.
The operating margin increased from 21.9% in 2021 to 23.2% in 2022 primarily due to higher organic sales volumes. The
operating margin increased from 18.6% in 2020 to 21.9% in 2021 primarily due to the acquisition of Mission Systems and
savings from restructuring actions, partially offset by lower organic sales volumes.
Vehicle
(In millions)
Net sales
Operating profit
Operating margin
Changes in Net sales are summarized as follows:
Organic growth
Foreign currency
Total increase in Net sales
2022
Change
from 2021
2021
Change
from 2020
$ 2,830
10 % $ 2,579
2020
22 % $ 2,118
$
453
16.0 %
1 % $
449
85 % $
243
17.4 %
11.5 %
2022
2021
12 %
(2)%
21 %
1 %
10 %
22 %
The increase in organic sales in 2022 was primarily due to strength in the North American truck and light vehicle markets,
and South American truck, bus and agriculture markets. The increase in organic sales in 2021 was primarily due to strength in
all regions compared to 2020 which was significantly impacted by plant shutdowns due to the COVID-19 pandemic. This
organic growth was achieved despite the Vehicle business segment's organic sales being negatively impacted in 2021 as a result
of its customers experiencing supply chain constraints leading to reduced production levels and historic low vehicle inventory.
The operating margin decreased from 17.4% in 2021 to 16.0% in 2022 primarily due to commodity and logistics inflation
and operating inefficiencies due to supply chain constraints, partially offset by higher sales volumes including inflationary
recovery. The operating margin increased from 11.5% in 2020 to 17.4% in 2021 primarily due to higher sales volumes and
savings from restructuring actions, partially offset by commodity and logistics inflation.
85View entire presentation