Investor Presentaiton
Summary of Results of Operations
A summary of Eaton's Net sales, Net income attributable to Eaton ordinary shareholders, and Net income per
attributable to Eaton ordinary shareholders - diluted is as follows:
share
(In millions except for per share data)
2022
2021
2020
Net sales
$
Net income attributable to Eaton ordinary shareholders
20,752 $
2,462
19,628 $
2,144
17,858
1,410
Net income
per
share attributable to Eaton ordinary shareholders - diluted
$
6.14 $
5.34 $
3.49
2020: Organic sales during 2020 were down 11% primarily due to the initial impact from the COVID-19 pandemic. In
addition, the divestitures of the Lighting and Automotive Fluid Conveyance businesses also reduced sales, but were partially
offset by growth from the acquisitions of Souriau-Sunbank Connection Technologies and Power Distribution, Inc.
2021: Organic sales increased 10% in 2021 as end-markets and regions served by our business segments experienced broad
recovery from the negative impact of the COVID-19 pandemic. Our Electrical Global, Vehicle and eMobility business
segments all realized organic growth greater than 10% during the year, despite supply chain constraints limiting the availability
of materials in select businesses, travel restrictions continuing to impact commercial aviation, and reduced production levels at
our customers leading to historic low vehicle inventory.
2022: Organic sales increased 13% in 2022 due to broad-based strength in end-markets and pricing actions in response to
inflationary pressures. Each of our business segments realized organic growth greater than 10% during the year, despite being
impacted by operating inefficiencies due to supply chain constraints or shortages, inflation, and selective labor shortages.
Additionally, over the past several years, Eaton has completed a number of transactions to add higher growth, better margin
businesses to its portfolio. These portfolio updates have the Company better aligned with secular growth trends and well
positioned for expected further growth. These changes to our portfolio of businesses along with double digit organic sales
growth and operational performance over the past two years have led to 76% growth in our net income per share since the
COVID-19 pandemic began in 2020.
RESULTS OF OPERATIONS
Non-GAAP Financial Measures
The following discussion of Consolidated Financial Results includes certain non-GAAP financial measures. These financial
measures include adjusted earnings and adjusted earnings per ordinary share, each of which differs from the most directly
comparable measure calculated in accordance with generally accepted accounting principles (GAAP). A reconciliation of
adjusted earnings and adjusted earnings per ordinary share to the most directly comparable GAAP measure is included in the
Consolidated Financial Results table below. Management believes that these financial measures are useful to investors because
they provide additional meaningful financial information that should be considered when assessing our business performance
and trends, and they allow investors to more easily compare Eaton's financial performance period to period. Management uses
this information in monitoring and evaluating the on-going performance of Eaton.
Acquisition and Divestiture Charges
Eaton incurs integration charges and transaction costs to acquire and integrate businesses, and transaction, separation and
other costs to divest and exit businesses. Eaton also recognizes gains and losses on the sale of businesses. A summary of these
Corporate items is as follows:
(In millions except for per share data)
2022
2021
2020
Acquisition integration, divestiture charges and transactions costs
Gain on the sale of the Hydraulics and Lighting businesses
$
194 $
349 $
288
(24)
(617)
(221)
Total charges (income) before income taxes
Income tax expense (benefit)
Total after income taxes
Per ordinary share - diluted
170
(268)
67
(23)
362
66
$
147
$
94 $
133
$
0.37
$
0.23
$
0.33
80
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