Document 3QznaKzpb20kaEm63goe7Jkoa

Eaton Corporation Financial Highlights For the year (Millions except for per share data) Net sales Income before income taxes and extraordinary item Income before extraordinary item Extraordinary item Net income Per Common Share Income before extraordinary item Extraordinary item Net income Average number of Common Shares outstanding Per Common Share-assuming dilution Income before extraordinary item Extraordinary hern Net Income __ Average number of Common Shares outstanding arket price per Common Share High Low Cash dividends paid per Common Share At the year-end Total assets Working capital Long-term debt Shareholders' equity Shareholders' equity per Common Share Excluding hams 1997 1996 As reported 1997 1996 $ 7,563 686 495 $6,961 535 381 $7,563 668 $ 464 (54) $ 410 $6,961 485 $ 349 $ 349 S 6.45 $ 4.91 $ 6.05 (-71) $ 5.34 76.8 $ 4.50 $ 4.50 77.4 $ 6.33 $ 4.87 $ 5.93 (.69) $ 524 78.2 $ 4.46 $ 4.46. 782 $ 103% 67% $ 1.72 $ 70.% 50% $ 1.60 $5.46$;. 698 1,272 2,071 $ 27.72 $5,307 787 1,062 2,160 $28.00 One-time items included In results of operations for 1997 and 1996 are as follows: Income in 1997 was increased by pretax gains of $91 million related to the sales of AIL Systems Inc. and the Appliance Controls business ($69 million aftertax, or $.90 per Com mon Share). Income in 1997 and 1996 was reduced by pretax restructuring charges of $24 million ($15 million aftertax, or $.19 per Common Share) and $50 million ($32 million aftertax, or $.41 per Common Share), respectively. Net income In 1997 was reduced by an $85 million write-off of purchased in-process research and development related to the acquisition of Fusion Systems Corporation, with no Income tax benefit, or $1.11 per Common Share. Net income in 1997 was reduced by a $54 million aftertax extraordinary loss for the redemption of debentures, or $.71 per Common Share. V