Document O3X61N3rRoqoKy95qz6NnE4QQ

FINANCIAL. REVIEW Eaton Corporation QUARTERLY DATA (Unaudited l Quarter ended (Millions ol dollars euept lor per share dotal mi Net sales Gross margin Percent of sales Income before extraordinary item Extraordinary item Net income Dec. it Sept. 30 June JO iMar. 31 $ 1.1J 5 .'47 :vi 30 14) :h S 1.053 .'60 25ri u u SI.147 274 24'* 5* s\ SI.0X6 :?5 25'* 55 131 51) Per Common Share Income before extraordinary item Extraordinary item Net income Cash dividends paid Market price High Losv S 41 1 051 36 30 S .63 .63 ' 31) S 77 77 275 $ .76 (.051 .71 275 sr-. 47'.* 4.x 45 4I>- 1992 Net sales Gross margin Percent of sales me before cumulative effect of ^counting changes Cumulalive effect of accounting changes Postretiremen! benefits other than pensions Income taxes Net income (lossl $1,030 $1,012 $1,064 $ 995 253 223 256 235 24% 2253 24*. 24* 39 28 41 32 (274) 6 39 28 41 (236) Per Common Share Income before cumulative effect of accounting changes S .57 Cumulative effect of accounting changes Postretiremen! benefits other than pensions Income taxes Net income (lossl .57 Cash dividends paid 275 Markei price High 4()\ Low $5 S 40 .4(1 .275 40 *. $ 60 .60 .275 41a 35* $ .46 (4.00) .09 (3.45) .275 39 X 30X The fourth quarter of 1993 includes an acquisition integration charge of S55 million before income tax credits ($34 million after income tax credits, or S.49 per Common Share). The redemption of debentures in 1993 resulted in extraordinary losses of $5 million and $6 million before income tux credits in the first and fourth quarters, respectively (S3 million and $4 million after income tax credits, or S.05 per Common Share in each quarteri. The prpuously reported first quarter results were restated to segregate the e .dinary loss. Cross margin for the second quarter of 1993 was reduced by a charge of $9 million for the restructuring i>l certain vehicle compo nents operations in Europe. The third quarter of 1992 includes an SI I million gain, before income taxes, on the sale of an interest in a limited partnership. The gain was partially offset by the accrual in the third quarter of 1992 of the contribution to the Company's charitable trust of marketable securities with a market value of S8 million. In 1992, the Company adopted the new accounting standards for postretiremen! benefits other than pensions and income taxes, retro active to January I. 1992. Net income in the first quarter of 1992 includes the cumulalive effect of the accounting change for postre tirement benefits other than pensions tor prior years of $442 million before income tax credits ($274 million after income tax credits, or $4.00 per Common Share). Net income in the first quarter of 1992 also includes the cumulative effect of the accounting change for income taxes for prior years of S6 million, or $.09 per Common Share. IIUSINESS SEGMENT AND GEOGRAPHIC REGION INFORMATION Operations are classified among three business segments: Vehicle Components, Electrical and Electronic Controls and Defense Systems. The major classes of products included in each segment and other information follow. Vehicle Components Truck Components - Heavy and medium duty mechanical transmis sions: power take-offs; drive, trailer and steering axles: brakes: lock ing differentials: engine valves: valve lifters: leaf springs: viscous fan drives; fans and fan shrouds: power steering pumps: tire pressure control systems; tire valves. Passenger Car Components - Engine valves: hydraulic valve lifters: viscous fan drives: fans and fan shrouds: locking differentials: spring fluid dampers: superchargers: tire valves. Off-Highway Vehicle Components - Mechanical and automatic transmissions; drive and steering axles: brakes: engine valves; hydraulic valve lifters; gear and piston pumps and motors: transaxles and steering systems: geroters: control salves and cylinders: forgings; tire valves. The principal market for these products is original equipment mam. facturers of trucks, passenger cars and oli -highw ay vehicles. Most sales ol these products are made directl> from the Company's plant' to such manufacturers. Electrical tuttl Electronic Controls Industrial and Commercial Controls - Electromechanical and elec tronic controls: motor starters, corn-actor-, overloads and electric drives; programmable controllers, counters, num/machine interface panels and pushbuttons, photoelectric, proximity, temperature am! pressure sensors, circuit breakers, lomlcemers. safety switches; p.. elboards: switchboards; dry type li.iii'luimcrs. bti'way. meter ecuters. portable tool switches: comincicuil switches, relays: illuminated panels: annunciator panels: electrically actuated salves and actuators Automotive and Appliance Connols Eleciromechanical and elec tronic controls: conscniencc. stalk and concealed switches: knock sensors: climate control components speed controls: timers; presstne switches, water raises: range controls, thermostats; gas valves: m1' nite switches, temperature and hunndits sensors