GUY NORRIS / LOS ANGELES
Power control company believes military work will drive growth and recession will make takeovers cheaper
Hydraulic and electrical power control specialist Eaton Aerospace is driving an ambitious strategic expansion of its aerospace business through acquisitions, and predicts a new wave of consolidation in the second and third-tier fluid controls community.
"We have a plan to grow very aggressively, and it is very strategically important to Eaton," says Aerospace Fluid Power sales and marketing vice president Brent Wisch. The aerospace division, which accounts for around 10% of Eaton's $8.4 billion annual turnover, is based on two main areas: fluid systems and a range of electrical-based actuation and power systems. "We're looking at increasing critical mass by acquisition in the systems arena. We want to grow as fast as we can," says Wisch.
Eaton's goal is to provide a wider systems solution for contractors based on the model established with the recent win of a contract for the hydraulic power generation system on the Airbus A380, plus existing packages on the Raytheon Hawker Horizon, Lockheed Martin Joint Strike Fighter demonstrator and Boeing's C-17 military transport.
"We are positioning the aerospace business to be strong in fluids and electrics, and moving it all up the food chain to embrace bigger sub-systems," says Wisch, who adds that Eaton's advanced technology developments support the gradual trend to the all-electric aircraft. This includes new electric motor pumps patented for the 345bar (5,000lb/in2) A380 system and similar technology likely to be proposed for future programmes such as Boeing's sonic cruiser.
Eaton believes its growth plan will continue despite the recession because of renewed activity on the military side, and the increased likelihood of picking up second-tier suppliers at a reduced price.
"There are companies in areas we'd like to acquire but they're not for sale, though that may change soon," says Eaton Aerospace sales and marketing director Philippe Coude du Foresto. The company expects a slow shift in its sales towards the military market, which accounts for around 40%. It expects a similar trend in the growth of after-market sales.
Source: Flight International
