The majority of Eaton’s customers are in industries with significant environmental challenges, and the company’s products enable them to reduce their energy use and other environmental impacts. Eaton’s products address energy efficiency in the fields of Electrical, Aerospace, Automotive, Hydraulics, and Trucks. For example, Eaton’s Hybrid Electric Vehicle powertrain and Hydraulic Launch system boost fuel economy and reduce particulate emissions in buses and trucks, its electrical power control systems can reduce power consumption by up to 50%, and Eaton offers variable speed drives that are inherently more energy efficient than single speed drives. Eaton’s CEO, Alexander Cutler, shows a clear understanding of environmental issues in his assessment that “[increasing energy, transportation, and infrastructure demands] are causing a strain on power grids, petroleum supplies, the environment, and the pocketbooks of global businesses and everyday consumers.” By helping its customers operate more efficiently and produce more energy efficient products, Eaton is poised to benefit from the market opportunity to assist businesses in adapting to today’s ecological constraints. Areas for improvement include establishing reduction targets for absolute energy consumption and a commitment to purchase renewable energy.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/14 and may not reflect current opinions or subsequent events.