Investor Presentaiton
Consolidated Financial Results
Change
Change
(In millions
except for per share data)
2022
from 2021
2021
from 2020
2020
Net sales
$ 20,752
6% $ 19,628
10% $ 17,858
Gross profit
6,887
9 %
6,335
16 %
5,450
Percent of net sales
33.2 %
32.3 %
30.5 %
Net income
Income before income taxes
Less net income for noncontrolling interests
Net income attributable to Eaton ordinary shareholders
Excluding acquisition and divestiture charges, after-tax
Excluding restructuring program charges, after-tax
Excluding intangible asset amortization expense, after-tax
Adjusted earnings
2,911
1 %
2,896
66%
1,746
2,465
15 %
2,146
52 %
1,415
(4)
(2)
(5)
2,462
15 %
2,144
52 %
1,410
147
94
133
29
60
170
394
361
272
$ 3,032
14 % $ 2,659
34 % $ 1,985
Net income per share attributable to Eaton ordinary
shareholders - diluted
$
6.14
15 % $
5.34
53 % $
3.49
Excluding per share impact of acquisition and divestiture
charges, after-tax
0.37
0.23
0.33
Excluding per share impact of restructuring program
charges, after-tax
0.07
0.15
0.42
Excluding per share impact of intangible asset
amortization expense, after-tax
0.99
0.90
0.67
Adjusted earnings per ordinary share
$
7.57
14% $ 6.62
35 % $
4.91
Net Sales
Changes in Net sales are summarized as follows:
Organic growth
Acquisitions of businesses
Divestiture of business
Foreign currency
Total increase in Net sales
2022
2021
13 %
10 %
3 %
5 %
(7)%
(6)%
(3)%
1 %
6%
10 %
2022: Organic sales increased 13% in 2022 due to broad-based strength in end-markets of the Electrical Americas and
Electrical Global business segments, strength in sales to commercial OEM and aftermarket in the Aerospace business segment,
and higher sales volumes including inflationary recovery in the Vehicle business segment. Despite strong growth, many of our
businesses were impacted by operating inefficiencies due to supply chain constraints or shortages, inflation, and selective labor
shortages.
The acquisitions of Tripp Lite, Mission Systems, and Royal Power Solutions increased sales in 2022, while the divestiture of
the Hydraulics business reduced sales.
2021: The increase in organic sales in 2021 was due to broad-based strength in end-markets and regions as our business
segments had largely recovered from the negative impact of the COVID-19 pandemic in 2020. This organic growth was
achieved despite the supply chain constraints experienced by the Electrical Americas business segment, and customers of the
Vehicle and eMobility business segments also experienced supply chain constraints leading to reduced production levels.
Additionally, organic sales in the Aerospace business segment continued to be impacted by travel restrictions from the
COVID-19 pandemic on commercial aviation.
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