Eaton's eMobility Division Inks Another Deal
Global industrial giant Eaton (NYSE: ETN) started a new business in 2018 to take advantage of the shift toward electrification in the vehicle space. If you look at the top-level financial results so far, the eMobility division doesn't look like it's having much success. Step back and take a good look, however, and things seem to be going pretty well. Here's what you need to know to understand why Eaton is pleased with the progress it's making at eMobility despite a massive drop in profits.
From its inception, Eaton has served the transportation industry. The company's product line has changed over time, but the vehicle segment is still a big contributor to overall results. In the second quarter, this business provided roughly 15% of revenue and had operating margin of 16.9%. Year over year, this margin contracted by 1.6 percentage points, while the division's revenue fell 11%.
Image source: Getty Images.
Source Fool.com
