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General Company Info

Eaton Corporation (NYSE: ETN) is a diversified industrial manufacturer and engages in the design,
manufacture, marketing, and service of fluid power, electrical, automotive, and truck products in North
America, Europe, and Asia Pacific. It operates manufacturing facilities in 27 countries and sells products
in more than 125. The company holds significant share in most of its niche markets. Eaton plays for
keeps -- if it can't win, it doesn't play. The diversified manufacturing company has made dozens of
acquisitions and divestitures in the last 10 years. Eaton's game plan calls for nurturing businesses in
which it holds a strong market share. The Eaton Business System provides the foundation for a high-
performance culture through an integrated operating system. Incorporated in 1916, it underwent three
names changes before becoming Eaton Corporation in 1971. Eaton is a component of the S&P 500.

Headquarters: Cleveland, OH                                    2005 Sales: $11.1 Billion
Employment: 59,000 people                                      2005 Net Income: $805 Million

Operating Segments

Fluid Power (2004 sales: $3.1 Billion) – designs, manufactures and markets a comprehensive line of
reliable, high-efficiency hydraulic systems and components for use in mobile, industrial and aerospace
applications. It also produces golf grips and other precision molded and extruded plastic products.
Electrical (2004 sales: $3.1 Billion) – provides electrical control, power distribution, uninterruptible power
systems and industrial automation products and services.
Auto (2004 sales: $1.8 Billion) – a partner to the passenger car and light-truck industry. Principal products
include superchargers, engine valves, cylinder heads, sensors, actuators, intelligent cruise control
systems, tire valves, fluid connectors, decorative body moldings and spoilers.
Truck (2004 sales: $1.8 Billion) – designs, manufactures and markets drivetrain systems and components
for medium-duty and heavy-duty commercial vehicles.

In the news

January 23, 2006 (BUSINESS WIRE) - Eaton today announced net income per share of $1.38 for the
fourth quarter of 2005, an increase of 19 percent over net income per share of $1.16 in the fourth quarter
of 2004. Sales in the quarter were a record $2.8 billion, 8 percent above the same period in 2004. Net
income was $210 million compared to $183 million in 2004, an increase of 15 percent. Net income in
both periods included charges related to restructuring activities

December 6, 2005 - Eaton announced it completed its purchase of the aerospace division of PerkinElmer,
Inc. The transaction was announced October 6. The aerospace division of PerkinElmer, Inc. is a leading
provider of sealing and pneumatic systems for large commercial aircraft and regional jets. It also
produces other products for aircraft engines, fuel systems, cabin air and de-icing systems, and hydraulic
systems, as well as industrial equipment.

Nov 15, 2005 - Eaton is collaborating with HP to provide customers a single power and cooling solution
for mission-critical data centers, built upon Eaton's PowerChain Management            solutions and HP's
Adaptive Enterprise technologies. The solutions provide IT and facilities' customers an integrated
approach for managing the power and cooling needs of dense IT infrastructures from the power
substation to the data center and on to server and storage hardware. "This effort is the next step in our
decade-long work with HP to support innovation on the data center floor, and it connects that activity with
Eaton's traditional strength in complete facility electrical systems," said Randy Carson, Eaton senior vice
president and president - Electrical Group.

Top Competitors

ITT Industries - engages in the design and manufacture of engineered products, as well as in the
provision of related services.
Johnson Controls - makes car seats, interior systems, and batteries, as well as environmental control
systems for commercial buildings.
Parker Hannifin - motion-control products use hydraulic (liquid) or pneumatic (gas or air) systems to move
and position materials, or to control equipment.

Sources: Company website,,, and Yahoo! Finance

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