Eaton Corporation
Third Quarter 2007 Report on Form 10-Q
Item 6
Exhibit 12
Ratio of Earnings to Fixed Charges

	Nine months ended
	September 30,			Year ended December 31
	2007			2006		2005		2004		2003			2002
Income from continuing operations before income taxes	$	782		$	969	$	964	$	749	$	463		$	364
Adjustments
Minority interest in consolidated subsidiaries		9			10		5		7		12			14
(Income) losses of equity investees		(3	)		1		1				(3	)		(1	)
Interest expensed		143			139		109		88		93			110
Amortization of debt issue costs		1			1		1		1		2			2
Estimated portion of rent expense representing interest		31			41		38		37		38			34
Amortization of capitalized interest		9			12		12		17		13			13
Distributed income of equity investees					1		4		3
Adjusted income from continuing operations before income taxes	$	972		$	1,174	$	1,134	$	902	$	618		$	536
Fixed charges
Interest expensed	$	143		$	139	$	109	$	88	$	93		$	110
Interest capitalized		11			14		13		7		7			8
Amortization of debt issue costs		1			1		1		1		2			2
Estimated portion of rent expense representing interest		31			41		38		38		38			34
Total fixed charges	$	186		$	195	$	161	$	134	$	140		$	154
Ratio of earnings to fixed charges		5.23			6.02		7.04		6.73		4.41			3.48

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