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Eaton (ETN) FY2018 results: revenue $21.6 billion, up 5.9% on the year

Eaton Corp. plc (ETN) reported revenue of $21.6 billion for fiscal 2018, the year ended 31 December 2018, up 5.9% on the year before. Net income was $2.1 billion, down 28.1%, and diluted earnings per share $4.91. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2019.

Revenue
$21.6 billion
+5.9% on the year
FY2011FY2018
Operating margin
16.8%
15.8% a year earlier
FY2011FY2018
Net income
$2.1 billion
-28.1% on the year
FY2011FY2018
Diluted EPS
$4.91
-26.5% on the year
FY2011FY2018

this yearthe year beforeHover a bar for its figure.

The year in brief

Income statement (profit and loss)

$ millionFY2018FY2017FY2016On the yearLast 8 years
Revenue21,60920,40419,747+5.9%
Cost of revenue14,51113,75613,400+5.5%
Gross profit7,0986,6486,347+6.8%
Gross margin32.8%32.6%32.1%
Research and development5845845870.0%
Selling, general and administrative3,5483,5263,464+0.6%
Operating income3,6303,2142,958+12.9%
Operating margin16.8%15.8%15.0%
Pre-tax income2,4243,3682,118-28.0%
Income tax278382199-27.2%
Effective tax rate11.5%11.3%9.4%
Net income2,1452,9851,916-28.1%
Net margin9.9%14.6%9.7%
Diluted EPS$4.91$6.68$4.21-26.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2018FY2017FY2016On the yearLast 8 years
Operating cash flow2,6582,6662,570-0.3%
Capital expenditure565520497+8.7%
Free cash flow2,0932,1462,073-2.5%
Free cash flow margin9.7%10.5%10.5%
Cash from investing-398-217-529
Cash from financing-2,581-2,442-1,738
Depreciation and amortisation903914929-1.2%
Share-based compensation11.011.014.00.0%
Buybacks1,271850730+49.5%
Dividends paid1,1491,0681,037+7.6%
Dividend per share$2.64$2.40$2.28+10.0%
Diluted shares, weighted437m447m456m-2.3%
Shares outstanding at period end424m440m449m-3.7%

Balance sheet

$ millionFY2018FY2017FY2016On the yearLast 8 years
Shareholders' equity16,10717,25314,954-6.6%
Non-controlling interest35.037.044.0-5.4%
Short-term borrowings4146.014.0+6,800.0%
Debt7,1077,7458,263-8.2%
Operating lease liabilities0.0n/an/a
Other liabilities7,4297,5827,144-2.0%
Total liabilities and equity31,09232,62330,419-4.7%
Fixed assets3,4673,5023,443-1.0%
Goodwill13,32813,56813,201-1.8%
Intangible assets4,8465,2655,514-8.0%
Investments157534203-70.6%
Cash and equivalents283561543-49.6%
Receivables3,8583,9433,560-2.2%
Inventory2,7852,6202,346+6.3%
Other assets2,3682,6301,609-10.0%
Total assets31,09232,62330,419-4.7%

10-K for the year ended 31 December 2018, filed 27 February 2019: the filing.