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Eaton Corporation plc (ETN - Analyst Report) continues to provide electricity devices to Lennar Corporation (LEN - Analyst Report), a U.S.-based homebuilding company. Since 2004, Eaton has provided different kinds of products and services to Lennar.

On this occasion, Eaton announced that it will offer Cooper Wiring Devices to Lennar. The Cooper Wiring Devices includes Arrow Hart commercial and industrial solutions and lighting controls. The devices are capable of boosting productivity, improving energy efficiency and providing safety and reliability.

Eaton’s current offering to Lennar primarily includes the USB Duplex TR Receptacle and the dual USB charger. These products will increase safety as the devices have tamper-resistant shutters.

We note that the current product line originally comes under Cooper Industries plc.’s portfolio. Eaton had acquired Cooper Industries in 2012 for $13 billion. With this acquisition, the company expanded its expertise in lighting, power grids, and hydraulic and transmission systems.

Cleveland, Ohio-based Eaton is a diversified power management company. The company offers an array of products, such as powertrain, truck and automotive systems, electrical components and systems, hydraulics and pneumatic systems for commercial and military use.

As of Jun 30, 2013, Eaton had cash and short-term investments of $1 billion. A strong cash position enables the company to continue with its research and development activities and follow a steady inorganic growth strategy. These initiatives will help the company to provide better solutions to its customers and expand its product basket, thereby wining contracts at regular intervals.

Recently, Eaton entered into a contract with Swedish technology company Goodtech Projects & Services AB to provide SVS/08 modular Medium Voltage (MV) switchgear.

However, we are concerned about volatile currency market conditions, the current political impasse in the U.S. and a prolonged weakness in the global economy, which might have a negative impact on Eaton’s forthcoming performance.

Eaton currently has a Zacks Rank #3 (Hold). However, other stocks from the industry that are presently performing well include Rexnord Corporation (RXN - Analyst Report) with a Zacks Rank #1 (Strong Buy), and EnerSys (ENS - Snapshot Report) with a Zacks Rank #2 (Buy).

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