Eaton Corp. (ETN) said Monday that at the request of Chairman and Chief Executive Alexander M. Cutler, it set a limit on what the company can pay him under its incentive plan.
The Cleveland-based industrial manufacturer said in a filing with the Securities and Exchange Commission that Cutler decided to limit the incentive award he received because recent company actions had adversely affected employees and forced plant closings.
Cutler's incentive awards for the 2003-2006 incentive-plan period will be no greater than his award for the 2002-2005 period, according to Monday's filing.
Under the plan the executive will be granted phantom share units, which will be converted to cash. Monday's filing didn't say how much Cutler was given under the 2002-2005 incentive plan. A company representative wasn't immediately available to comment.
Eaton shares recently traded at $76.30 each, up 65 cents.
Tuesday, January 30, 2007
Monday, January 22, 2007
Eaton Corporation Posts 4th Quarter Gain
Eaton Corp., a maker of industrial parts and components, said Monday its fourth-quarter earnings were up nearly 15 percent from a year ago, driven by continuing growth of its electrical and fluid power business segments.
Eaton earned $241 million, or $1.59 per share, in the quarter ended Dec. 31, compared with $210 million, or $138 per share, in the final quarter in 2005.
The earnings matched Wall Street expectations, based on a Thomson Financial survey of analysts.
Before charges tied to acquisitions, operating earnings per share in the fourth quarter were $1.66 per share, compared to $1.43 per share in the year-ago quarter, an increase of 16 percent. Sales in the quarter were $3.1 billion, 10 percent above the $2.84 billion during the same period a year ago.
For the year, Eaton's profit grew 18 percent to $950 million, or $6.22 per share, on sales of $12.37 billion.
In 2005, Eaton earned $805 million, or $5.23 per share, on sales of $11.12 billion.
Eaton boosted its quarterly dividend by 10 percent, from 39 cents per share to 43 cents per share and authorized an increase to 10 million for its repurchase of common shares.
The company provided guidance for projected per-share earnings for the first quarter of 2007 within a range of $1.30 to $1.40 and for the full year from $6.05 to $6.25.
Eaton earned $241 million, or $1.59 per share, in the quarter ended Dec. 31, compared with $210 million, or $138 per share, in the final quarter in 2005.
The earnings matched Wall Street expectations, based on a Thomson Financial survey of analysts.
Before charges tied to acquisitions, operating earnings per share in the fourth quarter were $1.66 per share, compared to $1.43 per share in the year-ago quarter, an increase of 16 percent. Sales in the quarter were $3.1 billion, 10 percent above the $2.84 billion during the same period a year ago.
For the year, Eaton's profit grew 18 percent to $950 million, or $6.22 per share, on sales of $12.37 billion.
In 2005, Eaton earned $805 million, or $5.23 per share, on sales of $11.12 billion.
Eaton boosted its quarterly dividend by 10 percent, from 39 cents per share to 43 cents per share and authorized an increase to 10 million for its repurchase of common shares.
The company provided guidance for projected per-share earnings for the first quarter of 2007 within a range of $1.30 to $1.40 and for the full year from $6.05 to $6.25.
Friday, January 5, 2007
Eaton Electrical Organizational Announcement
Date: January 4, 2007
RE: PQSO, US Commercial Sales
Stephen Crescenzo has accepted the position of Southeast Zone Manager and Bob Gaylord has accepted the position of West Coast Zone Manager within the PQSO Sales organization.
In their new roles, they will be responsible for the strategic management of regional sales resources to achieve sales/orders, market share, price, product mix and financial objectives for their respective zones, focusing on single-phase & three-phase UPS, Services Sales and related technologies. Each will report directly to me.
Stephen Crescenzo started his career with Eaton in 1997 working as an OEM account manager, then moved to OEM Channel Manager. From 2001 - 2005, Stephen took on the role of Federal Product and Integration Sales Manager, where he was responsible for providing power quality products and integration services to customers within the Federal Government sector. In 2006, Stephen was promoted to Federal Sales Manager within the Federal Segment. Stephen brings a unique set of skills and experiences to this position with his prior experience in the OEM, Distribution and Federal segments. He holds a Bachelors degree in Business Administration from Temple University in Philadelphia, PA.
Reporting to Stephen will be:
John Lowe, Sales Manager
John Schwing, Sales Manager
Keith Woodley, Sales Manager
Jack Gamble, Sales Manager
Thomas Blooming, Applications Engineer
Patricia Brown, UPS Service Sales Manager
The Southeast Zone will now include Texas, which was previously within the West Zone.
Bob Gaylord, in his most recent assignment, has been the Eaton Electrical GSF Industrial Team Leader for the San Francisco Bay Area, with responsibility for driving sales and managing the industrial and OEM team within the territory. He also had a geographic overlay as OEM Sales Manager for the San Francisco, Seattle, and Denver Districts.
Bob joined the company in 1982 and has held progressive assignments within Eaton Electrical GSS including; OEM Sales Engineer, Technical Sales Development Program Manager, OEM Response Center Manager, and District Manager. He holds a Bachelors degree in Mechanical Engineering from Union College in Schenectady, NY and an Executive MBA from St. Mary’s College in Moraga, CA.
Reporting to Bob will be:
Alan Chiste, Sales Manager
Linda Hagen, Sales Manager
Stephen Solis, Sales Manager
Robert Bokma, UPS Service Sales Manager
David Speidelsbach adds to his Metro Zone responsibility the addition of the Northeast Region, which better aligns with the Eaton Electrical GSS organization.
Continuing to report to David will be:
Mike Desautels, Direct Sales Engineer
Keith Watson, Direct Sales Engineer
Andy Pavelko, Sales Manager
Laurie Watson, UPS Service Sales Manager
Added to David’s team will be:
Joe Devito, Sales Manager
Rich Su, Applications Engineer
Mike Redman, who is joining Eaton as the Boston-based Sales Manager.
Dann McKeraghan continues as the Central Zone Manager and expands his team to include a direct sales presence in Chicago.
Continuing to report to Dann will be:
Dan Ellis, Sales Manager
Kevin Laas, Sales Manager
Sally Rhodes, Sales Manager
George Wasielewski, Sales Manager
Susan Bowe, UPS Service Sales Manager
Added to Dann’s team will be:
Alois Kuril, who is transferring to the team as an Applications Engineer supporting the Central Zone
Gil Vega, who is joining Eaton as a Direct Sales Engineer supporting the Central Zone
Please join me in welcoming Stephen Crescenzo, Bob Gaylord, Mike Redman, Alois Kuril, and Gil Vega to the PQSO Sales team!
Darrick Finan
US Commercial Sales Manager
PQSO Sales & Marketing Division
RE: PQSO, US Commercial Sales
Stephen Crescenzo has accepted the position of Southeast Zone Manager and Bob Gaylord has accepted the position of West Coast Zone Manager within the PQSO Sales organization.
In their new roles, they will be responsible for the strategic management of regional sales resources to achieve sales/orders, market share, price, product mix and financial objectives for their respective zones, focusing on single-phase & three-phase UPS, Services Sales and related technologies. Each will report directly to me.
Stephen Crescenzo started his career with Eaton in 1997 working as an OEM account manager, then moved to OEM Channel Manager. From 2001 - 2005, Stephen took on the role of Federal Product and Integration Sales Manager, where he was responsible for providing power quality products and integration services to customers within the Federal Government sector. In 2006, Stephen was promoted to Federal Sales Manager within the Federal Segment. Stephen brings a unique set of skills and experiences to this position with his prior experience in the OEM, Distribution and Federal segments. He holds a Bachelors degree in Business Administration from Temple University in Philadelphia, PA.
Reporting to Stephen will be:
John Lowe, Sales Manager
John Schwing, Sales Manager
Keith Woodley, Sales Manager
Jack Gamble, Sales Manager
Thomas Blooming, Applications Engineer
Patricia Brown, UPS Service Sales Manager
The Southeast Zone will now include Texas, which was previously within the West Zone.
Bob Gaylord, in his most recent assignment, has been the Eaton Electrical GSF Industrial Team Leader for the San Francisco Bay Area, with responsibility for driving sales and managing the industrial and OEM team within the territory. He also had a geographic overlay as OEM Sales Manager for the San Francisco, Seattle, and Denver Districts.
Bob joined the company in 1982 and has held progressive assignments within Eaton Electrical GSS including; OEM Sales Engineer, Technical Sales Development Program Manager, OEM Response Center Manager, and District Manager. He holds a Bachelors degree in Mechanical Engineering from Union College in Schenectady, NY and an Executive MBA from St. Mary’s College in Moraga, CA.
Reporting to Bob will be:
Alan Chiste, Sales Manager
Linda Hagen, Sales Manager
Stephen Solis, Sales Manager
Robert Bokma, UPS Service Sales Manager
David Speidelsbach adds to his Metro Zone responsibility the addition of the Northeast Region, which better aligns with the Eaton Electrical GSS organization.
Continuing to report to David will be:
Mike Desautels, Direct Sales Engineer
Keith Watson, Direct Sales Engineer
Andy Pavelko, Sales Manager
Laurie Watson, UPS Service Sales Manager
Added to David’s team will be:
Joe Devito, Sales Manager
Rich Su, Applications Engineer
Mike Redman, who is joining Eaton as the Boston-based Sales Manager.
Dann McKeraghan continues as the Central Zone Manager and expands his team to include a direct sales presence in Chicago.
Continuing to report to Dann will be:
Dan Ellis, Sales Manager
Kevin Laas, Sales Manager
Sally Rhodes, Sales Manager
George Wasielewski, Sales Manager
Susan Bowe, UPS Service Sales Manager
Added to Dann’s team will be:
Alois Kuril, who is transferring to the team as an Applications Engineer supporting the Central Zone
Gil Vega, who is joining Eaton as a Direct Sales Engineer supporting the Central Zone
Please join me in welcoming Stephen Crescenzo, Bob Gaylord, Mike Redman, Alois Kuril, and Gil Vega to the PQSO Sales team!
Darrick Finan
US Commercial Sales Manager
PQSO Sales & Marketing Division
Wednesday, January 3, 2007
Fitch Ratings rates Eaton's debt high
CHICAGO (AP) - Fitch Ratings on Tuesday reiterated its debt ratings and outlook on Eaton Corp., but said the industrial manufacturer's recent acquisitions have driven its debt somewhat high.
Fitch presently rates the company's issuer default rating, senior unsecured bank facilities and senior unsecured debt at "A". Fitch rates its commercial paper at "F1". The outlook is stable.
Fitch said it views Eaton's leverage as somewhat high for the rating category, but added that the ratings assume the company will use its free cash flow to control debt and leverage over the long term. Eaton has exercised disciplined financial policies in the past and it has the capacity to reduce debt quickly in the absence of major acquisitions or share repurchases, Fitch noted.
In addition, Fitch said Eaton has successfully integrated previous acquisitions and continues to realign its business portfolio to reduce its exposure to the cyclical truck and automotive markets. Those factors help offset rating concerns about competitive environments in many of its markets, as well as an expected downturn in the truck segment in 2007.
Eaton's most recent acquisition activity came on Thursday, when it announced plans to acquire privately held AT Holdings Corp., parent company of aerospace supplier Argo-Tech Corp., for $695 million. Argo-Tech makes fuel pumps and systems for aerospace engines and airframes, as well as fueling systems for commercial and military aerospace markets.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Fitch presently rates the company's issuer default rating, senior unsecured bank facilities and senior unsecured debt at "A". Fitch rates its commercial paper at "F1". The outlook is stable.
Fitch said it views Eaton's leverage as somewhat high for the rating category, but added that the ratings assume the company will use its free cash flow to control debt and leverage over the long term. Eaton has exercised disciplined financial policies in the past and it has the capacity to reduce debt quickly in the absence of major acquisitions or share repurchases, Fitch noted.
In addition, Fitch said Eaton has successfully integrated previous acquisitions and continues to realign its business portfolio to reduce its exposure to the cyclical truck and automotive markets. Those factors help offset rating concerns about competitive environments in many of its markets, as well as an expected downturn in the truck segment in 2007.
Eaton's most recent acquisition activity came on Thursday, when it announced plans to acquire privately held AT Holdings Corp., parent company of aerospace supplier Argo-Tech Corp., for $695 million. Argo-Tech makes fuel pumps and systems for aerospace engines and airframes, as well as fueling systems for commercial and military aerospace markets.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
J.T. Packard settles suits with both MGE and Eaton
JT Packard, the fast-growing provider of uninterruptible power supply systems and other network-critical power equipment, announced that it has settled two patent cases and that founder and president Jeff Cason had resigned "to pursue other entrepreneurial interests."
JT Packard reached comprehensive settlements with both MGE UPS Systems (MGE) and Eaton Powerware, Inc. (Powerware), concluding all litigation. The settlements resolved the legal disputes to the parties’ satisfaction, eliminating the distraction of prolonged litigation and allowing them to pursue more productive business objectives. The terms of the settlements are confidential. On October 16, 2006, Power Plus, a California-based provider of power solutions, acquired 80% of JT Packard. Following the acquisition, Power Plus worked with MGE and Powerware to address industry concerns and negotiate equitable resolutions. Concurrent with the settlements, Power Plus completed the acquisition of the remaining 20% of JT Packard. Power Plus is pleased to end the legal disputes and capitalize on the efficiencies associated with the recent acquisition. In addition, Jeff Cason, President of JT Packard, announced his resignation, effective immediately. “After building the company into a UPS industry force, and earning a spot on the Inc. 500 for two consecutive years, Jeff left to pursue other entrepreneurial interests. We wish him the best of luck,” remarked Steve Bray, CEO of Power Plus. Charley Eaton, Executive Vice President of JT Packard, who was instrumental in the firm’s success despite the challenges of the litigation, was appointed President. Eaton has been with JT Packard for nearly two years. Prior to joining to JT Packard, he founded and operated a technology-related firm for 10 years.
JT Packard reached comprehensive settlements with both MGE UPS Systems (MGE) and Eaton Powerware, Inc. (Powerware), concluding all litigation. The settlements resolved the legal disputes to the parties’ satisfaction, eliminating the distraction of prolonged litigation and allowing them to pursue more productive business objectives. The terms of the settlements are confidential. On October 16, 2006, Power Plus, a California-based provider of power solutions, acquired 80% of JT Packard. Following the acquisition, Power Plus worked with MGE and Powerware to address industry concerns and negotiate equitable resolutions. Concurrent with the settlements, Power Plus completed the acquisition of the remaining 20% of JT Packard. Power Plus is pleased to end the legal disputes and capitalize on the efficiencies associated with the recent acquisition. In addition, Jeff Cason, President of JT Packard, announced his resignation, effective immediately. “After building the company into a UPS industry force, and earning a spot on the Inc. 500 for two consecutive years, Jeff left to pursue other entrepreneurial interests. We wish him the best of luck,” remarked Steve Bray, CEO of Power Plus. Charley Eaton, Executive Vice President of JT Packard, who was instrumental in the firm’s success despite the challenges of the litigation, was appointed President. Eaton has been with JT Packard for nearly two years. Prior to joining to JT Packard, he founded and operated a technology-related firm for 10 years.
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