Missouri
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1-278
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43-0259330
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(State or Other
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(Commission
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(I.R.S. Employer
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Jurisdiction of
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File Number)
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Identification Number)
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Incorporation)
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8000 West Florissant Avenue
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St. Louis, Missouri
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63136
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(Address of Principal Executive Offices)
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(Zip Code)
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Exhibit Number
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Description of Exhibits
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99.1
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Emerson’s May 3, 2011 Press Release announcing its second quarter 2011 results.
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EMERSON ELECTRIC CO.
(Registrant)
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Date: May 3, 2011
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By:
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/s/ Timothy G. Westman
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Timothy G. Westman
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Vice President, Associate General Counsel and Assistant Secretary
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Exhibit Number
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Description of Exhibits
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99.1
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Emerson’s May 3, 2011 Press Release announcing its second quarter 2011 results.
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·
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Second quarter sales increased 18 percent, to $5.9 billion
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·
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Earnings per share of $0.73, a strong increase of 38 percent
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·
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Strong operating cash flow of $753 million, up 19 percent
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·
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Expected full year earnings per share of $3.20 to $3.30
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Quarter Ended March 31,
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Percent
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|||||||||||
2010
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2011
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Change
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||||||||||
Net sales
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$ | 4,953 | $ | 5,854 | 18 | % | ||||||
Less: Costs and expenses
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||||||||||||
Cost of sales
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2,990 | 3,548 | ||||||||||
SG&A expenses
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1,203 | 1,315 | ||||||||||
Other deductions, net
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92 | 101 | ||||||||||
Interest expense, net
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67 | 57 | ||||||||||
Earnings from continuing operations before income taxes
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601 | 833 | 38 | % | ||||||||
Income taxes
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180 | 266 | ||||||||||
Earnings from continuing operations
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$ | 421 | $ | 567 | 35 | % | ||||||
Discontinued operations, net of tax
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(3 | ) | - | |||||||||
Net earnings
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$ | 418 | $ | 567 | 36 | % | ||||||
Less: Noncontrolling interests in earnings of subsidiaries
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13 | 11 | ||||||||||
Net earnings common stockholders
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$ | 405 | $ | 556 | 38 | % | ||||||
Diluted avg. shares outstanding
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757.4 | 757.3 | ||||||||||
Diluted earnings per share common stockholders:
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||||||||||||
Earnings from continuing operations
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$ | 0.54 | $ | 0.73 | 35 | % | ||||||
Discontinued operations
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(0.01 | ) | - | |||||||||
Diluted earnings per common share
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$ | 0.53 | $ | 0.73 | 38 | % | ||||||
Quarter Ended March 31,
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||||||||||||
2010 | 2011 | |||||||||||
Other deductions, net
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||||||||||||
Amortization of intangibles
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$ | 45 | $ | 64 | ||||||||
Rationalization of operations
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36 | 16 | ||||||||||
Other
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10 | 40 | ||||||||||
(Gains)/losses, net
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1 | (19 | ) | |||||||||
Total
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$ | 92 | $ | 101 |
Six Months Ended March 31,
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Percent
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|||||||||||
2010
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2011
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Change
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||||||||||
Net sales
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$ | 9,781 | $ | 11,389 | 16 | % | ||||||
Less: Costs and expenses
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||||||||||||
Cost of sales
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5,950 | 6,920 | ||||||||||
SG&A expenses
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2,337 | 2,626 | ||||||||||
Other deductions, net
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184 | 179 | ||||||||||
Interest expense, net
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132 | 118 | ||||||||||
Earnings from continuing operations before income taxes
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1,178 | 1,546 | 31 | % | ||||||||
Income taxes
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328 | 488 | ||||||||||
Earnings from continuing operations
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$ | 850 | $ | 1,058 | 24 | % | ||||||
Discontinued operations, net of tax
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5 | - | ||||||||||
Net earnings
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$ | 855 | $ | 1,058 | 24 | % | ||||||
Less: Noncontrolling interests in earnings of subsidiaries
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25 | 22 | ||||||||||
Net earnings common stockholders
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$ | 830 | $ | 1,036 | 25 | % | ||||||
Diluted avg. shares outstanding
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756.4 | 757.7 | ||||||||||
Diluted earnings per share common stockholders:
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||||||||||||
Earnings from continuing operations
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$ | 1.09 | $ | 1.36 | 25 | % | ||||||
Discontinued operations
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- | - | ||||||||||
Diluted earnings per common share
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$ | 1.09 | $ | 1.36 | 25 | % | ||||||
Six Months Ended March 31,
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||||||||||||
2010 | 2011 | |||||||||||
Other deductions, net
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||||||||||||
Amortization of intangibles
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$ | 80 | $ | 131 | ||||||||
Rationalization of operations
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74 | 33 | ||||||||||
Other
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33 | 37 | ||||||||||
(Gains)/losses, net
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(3
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) |
(22
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) | ||||||||
Total
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$ | 184 | $ | 179 |
March 31,
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||||||||
2010
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2011
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|||||||
Assets
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||||||||
Cash and equivalents
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$ | 2,159 | $ | 1,593 | ||||
Receivables, net
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3,654 | 4,231 | ||||||
Inventories
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2,075 | 2,324 | ||||||
Other current assets
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620 | 650 | ||||||
Total current assets
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8,508 | 8,798 | ||||||
Property, plant & equipment, net
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3,367 | 3,303 | ||||||
Goodwill
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7,630 | 8,905 | ||||||
Other intangible assets
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1,415 | 2,146 | ||||||
Other
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800 | 383 | ||||||
$ | 21,720 | $ | 23,535 | |||||
Liabilities and Equity
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||||||||
Short-term borrowings and current maturities of long-term debt
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$ | 1,269 | $ | 771 | ||||
Accounts payable
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2,122 | 2,463 | ||||||
Accrued expenses
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2,556 | 2,582 | ||||||
Income taxes
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52 | 118 | ||||||
Total current liabilities
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5,999 | 5,934 | ||||||
Long-term debt
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4,581 | 4,353 | ||||||
Other liabilities
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2,135 | 2,443 | ||||||
Total equity
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9,005 | 10,805 | ||||||
$ | 21,720 | $ | 23,535 |
Six Months Ended March 31,
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||||||||
2010
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2011
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|||||||
Operating Activities
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||||||||
Net earnings
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$ | 855 | $ | 1,058 | ||||
Depreciation and amortization
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402 | 435 | ||||||
Changes in operating working capital
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33 | (447 | ) | |||||
Other
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29 | 29 | ||||||
Net cash provided by operating activities
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1,319 | 1,075 | ||||||
Investing Activities
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||||||||
Capital expenditures
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(178 | ) | (208 | ) | ||||
Purchases of businesses, net of cash and equivalents acquired
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(1,340 | ) | (186 | ) | ||||
Other
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31 | (33 | ) | |||||
Net cash used in investing activities
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(1,487 | ) | (427 | ) | ||||
Financing Activities
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||||||||
Net increase in short-term borrowings
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725 | 107 | ||||||
Proceeds from long-term debt
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596 | 1 | ||||||
Principal payments on long-term debt
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(50 | ) | (55 | ) | ||||
Dividends paid
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(504 | ) | (522 | ) | ||||
Purchases of treasury stock
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(24 | ) | (176 | ) | ||||
Other
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49 | (33 | ) | |||||
Net cash provided by (used in) financing activities
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792 | (678 | ) | |||||
Effect of exchange rate changes on cash and equivalents
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(25 | ) | 31 | |||||
Increase in cash and equivalents
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599 | 1 | ||||||
Beginning cash and equivalents
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1,560 | 1,592 | ||||||
Ending cash and equivalents
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$ | 2,159 | $ | 1,593 |
Quarter Ended March 31,
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||||||||
2010
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2011
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|||||||
Sales
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||||||||
Process Management
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$ | 1,428 | $ | 1,653 | ||||
Industrial Automation
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1,010 | 1,308 | ||||||
Network Power
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1,351 | 1,616 | ||||||
Climate Technologies
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908 | 1,014 | ||||||
Tools and Storage
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422 | 455 | ||||||
5,119 | 6,046 | |||||||
Eliminations
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(166 | ) | (192 | ) | ||||
Net Sales
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$ | 4,953 | $ | 5,854 | ||||
Quarter Ended March 31,
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||||||||
2010 | 2011 | |||||||
Earnings
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||||||||
Process Management
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$ | 241 | $ | 296 | ||||
Industrial Automation
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130 | 210 | ||||||
Network Power
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158 | 150 | ||||||
Climate Technologies
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162 | 187 | ||||||
Tools and Storage
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89 | 91 | ||||||
780 | 934 | |||||||
Differences in accounting methods
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48 | 56 | ||||||
Corporate and other
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(160 | ) | (100 | ) | ||||
Interest expense, net
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(67 | ) | (57 | ) | ||||
Earnings from continuing operations before income taxes
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$ | 601 | $ | 833 | ||||
Quarter Ended March 31,
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||||||||
2010 | 2011 | |||||||
Rationalization of operations
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||||||||
Process Management
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$ | 9 | $ | 2 | ||||
Industrial Automation
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15 | 5 | ||||||
Network Power
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9 | 5 | ||||||
Climate Technologies
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2 | 2 | ||||||
Tools and Storage
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1 | 2 | ||||||
Total Emerson
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$ | 36 | $ | 16 |
Six Months Ended March 31,
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||||||||
2010
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2011
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|||||||
Sales
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||||||||
Process Management
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$ | 2,810 | $ | 3,195 | ||||
Industrial Automation
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1,996 | 2,518 | ||||||
Network Power
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2,732 | 3,285 | ||||||
Climate Technologies
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1,692 | 1,824 | ||||||
Tools and Storage
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856 | 901 | ||||||
10,086 | 11,723 | |||||||
Eliminations
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(305 | ) | (334 | ) | ||||
Net Sales
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$ | 9,781 | $ | 11,389 | ||||
Six Months Ended March 31,
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||||||||
2010 | 2011 | |||||||
Earnings
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||||||||
Process Management
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$ | 457 | $ | 586 | ||||
Industrial Automation
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239 | 395 | ||||||
Network Power
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364 | 332 | ||||||
Climate Technologies
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276 | 310 | ||||||
Tools and Storage
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170 | 184 | ||||||
1,506 | 1,807 | |||||||
Differences in accounting methods
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92 | 109 | ||||||
Corporate and other
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(288 | ) | (252 | ) | ||||
Interest expense, net
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(132 | ) | (118 | ) | ||||
Earnings from continuing operations before income taxes
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$ | 1,178 | $ | 1,546 | ||||
Six Months Ended March 31,
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||||||||
2010 | 2011 | |||||||
Rationalization of operations
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||||||||
Process Management
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$ | 16 | $ | 4 | ||||
Industrial Automation
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33 | 10 | ||||||
Network Power
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16 | 10 | ||||||
Climate Technologies
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5 | 6 | ||||||
Tools and Storage
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4 | 3 | ||||||
Total Emerson
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$ | 74 | $ | 33 |
Forecast FY2011 Net Sales
|
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Underlying Sales (Non-GAAP)
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~ +10% to +13%
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Acquisitions
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~ +3 pts.
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Currency
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~ +2 pts.
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Net Sales
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~ +15% to +18%
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Forecast FY2011 Cash Flow (dollars in billions)
|
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Operating Cash Flow
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~$3.3 - $3.5
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Capital Expenditures
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~ $(0.6)
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Free Cash Flow (Non-GAAP)
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~$2.7 - $2.9
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Operating Profit
|
Q2 FY10
|
Q2 FY11
|
||||||
Operating Profit (Non-GAAP)
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$ | 760 | $ | 991 | ||||
Operating Profit Margin % (Non-GAAP)
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15.3 | % | 16.9 | % | ||||
Other Deductions, Net
|
92 | 101 | ||||||
Interest Expense, Net
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67 | 57 | ||||||
Pretax Earnings
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$ | 601 | $ | 833 | ||||
Pretax Earnings Margin %
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12.1 | % | 14.2 | % | ||||
Free Cash Flow
|
Q2 FY10
|
Q2 FY11
|
||||||
Operating Cash Flow
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$ | 632 | $ | 753 | ||||
Capital Expenditures
|
(89 | ) | (126 | ) | ||||
Free Cash Flow (Non-GAAP)
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$ | 543 | $ | 627 |