We experienced our strongest growth in emerging economies, including China, India, the Middle East, Russia and Brazil, as our industry-leading PowerChain Management® solutions won a growing share of projects across industries and markets. Our acquisition of The Moeller Group, based in Germany, is helping us accelerate our expansion, providing a portfolio of power distribution and industrial control products that meets the IEC electrical standard commonly used outside of North America. With distribution networks in more than 80 countries, the Moeller business significantly expands our sales and service capabilities in Europe, the Middle East and Asia, and strengthens our manufacturing capabilities, primarily in Eastern Europe.

During 2008, we also closed our acquisition of Taiwan’s Phoenixtec Power Company, making Eaton the second largest supplier of uninterruptible power systems (UPS) in the world. The acquisition vastly expands our presence in China, Southeast Asia and Europe and strengthens our production and technological capabilities in the region. We augmented that strength later in the year by opening a new global Electrical Research & Development Center in Suzhou, China.

The additions of Moeller and Phoenixtec not only enable us to offer customers more comprehensive solutions, they allow us to move more quickly when urgent needs arise. Eaton staff were among the first responders to the devastating earthquake that struck central China’s Sichuan Province in May. Within hours of being called, our local electrical team replaced a damaged UPS at the Chengdu Shuangliu International Airport. With its power restored, the airport served as a crucial hub for rescue workers and relief supplies flown into the quake-torn region.

Hardwired to solve hard challenges
Eaton’s Electrical business is well positioned for future growth by focusing on our customers’ most demanding issues, including:

Energy efficiency. Eaton is a leading provider of energy-efficient and environmentally friendly electrical solutions to help customers conserve energy, reduce operating costs and achieve their sustainability goals. Our growing portfolio of “green” products and services is being used in eco-conscious projects across the globe — from the renovation of the University of Notre Dame in Notre Dame, Indiana, to the construction of Abu Dhabi’s Sky and Sun Towers, which grew at a rate of one new floor every six to 10 days in 2008.

Power quality and reliability. The Electric Power Research Institute estimates that power quality issues cost businesses more than $120 billion annually in the U.S. alone, helping to propel consistent double-digit growth in UPS sales. Eaton’s comprehensive UPS solutions keep critical operations, including high-density data centers, up and running in the face of growing power anomalies and outages. These award-winning systems also use less energy, require less cooling and take up less space, significantly reducing our customers’ operating costs.

Workplace safety. Employee safety has never been more important to the many industries we serve, particularly when it comes to protecting electrical workers from life-threatening arc flash events that can generate heat of up to 35,000 degrees Fahrenheit. Eaton provides comprehensive arc flash hazard analysis and training, and a full line of mitigating products, including our award-winning FlashGard® motor control center.