Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Quarter Ended December 31,
2014
2015
Net sales
$
Costs and expenses:
Cost of sales
SG&A expenses
Other deductions, net
Interest expense, net
Earnings before income taxes
Income taxes
Net earnings
Less: Noncontrolling interests in earnings of subsidiaries
Net earnings common shareholders
$
5,587
Diluted avg. shares outstanding
694.7
Diluted earnings per common share
$
3,307
1,405
64
46
765
236
529
4
525
0.75
$
4,713
(16)%
(34)%
$
2,824
1,226
114
46
503
151
352
3
349
$
$
55
9
(6)
—
6
64
(33)%
(34)%
652.5
$
0.53
Quarter Ended December 31,
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Currency (gain)/loss
Repositioning costs
Other
Total
Percent
Change
$
$
51
13
21
24
5
114
(29)%
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended December 31,
2014
2015
Assets
Cash and equivalents
Receivables, net
Inventories
Other current assets
Total current assets
Property, plant & equipment, net
Goodwill
Other intangible assets
Other
Total assets
Liabilities and equity
Short-term borrowings and current
maturities of long-term debt
Accounts payable
Accrued expenses
Income taxes
Total current liabilities
Long-term debt
Other liabilities
Total equity
Total liabilities and equity
$
$
$
$
3,122
4,404
2,121
836
10,483
3,631
6,940
1,649
1,021
23,724
$
3,484
2,468
2,640
285
8,877
3,289
2,002
9,556
23,724
$
$
$
3,109
3,842
1,903
840
9,694
3,520
6,601
1,467
270
21,552
3,409
2,075
2,616
102
8,202
4,043
1,810
7,497
21,552
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended December 31,
2014
2015
Operating activities
Net earnings
Depreciation and amortization
Changes in operating working capital
Other, net
Net cash provided by operating activities
$
529
207
(192)
27
571
$
352
202
(145)
78
487
Investing activities
Capital expenditures
Purchase of businesses, net of cash and equivalents acquired
Other, net
Net cash used by investing activities
(207)
(143)
(26)
(376)
(145)
(6)
(12)
(163)
Financing activities
Net increase in short-term borrowings
Payments of long-term debt
Dividends paid
Purchases of common stock
Other, net
Net cash used by financing activities
999
(251)
(326)
(509)
(59)
(146)
861
(251)
(310)
(507)
(4)
(211)
Effect of exchange rate changes on cash and equivalents
(76)
(58)
Increase (decrease) in cash and equivalents
(27)
55
Beginning cash and equivalents
Ending cash and equivalents
3,149
$
3,122
3,054
$
3,109
Table 4
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended December 31,
2014
2015
Sales
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Eliminations
Net sales
Earnings
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Differences in accounting methods
Corporate and other
Interest expense, net
Earnings before income taxes
Rationalization of operations
Process Management
Industrial Automation
Network Power
Climate Technologies
Commercial & Residential Solutions
Total
$
$
$
$
$
$
2,099
1,152
1,119
900
480
5,750
(163)
5,587
$
392
164
79
126
103
864
58
(111)
(46)
765
$
3
2
1
2
1
9
$
$
$
$
1,806
808
1,051
787
392
4,844
(131)
4,713
271
95
84
109
85
644
55
(150)
(46)
503
4
3
4
1
1
13
Reconciliations of Non-GAAP Financial Measures & Other
Table 5
The following reconciles non-GAAP measures (denoted by *) with the most directly comparable GAAP
measure (dollars in millions, except per share amounts):
2016 Q1 sales change
Underlying*
Acq/Div
FX
Reported
Process
Industrial Network Climate
Comm &
Mgmt
Auto
Power
Tech
Res Solns
(11 )%
(15 )%
(1 )%
(10 )%
(2 )%
1%
(10 )%
—%
—%
(15 )%
(4 )%
(5 )%
(5 )%
(3 )%
(1 )%
(14 )%
(30 )%
(6 )%
(13 )%
(18 )%
2015 Q1 sales change
Underlying*
Acq/Div
FX
Reported
Total
6%
(3 )%
(3 )%
—%
Q1 earnings per share
Reported
Portfolio Repositioning Costs
Adjusted*
2015
$0.75
—
$0.75
2016E earnings per share
Adjusted*
Portfolio Repositioning Costs
Reported
$3.05 to $3.25
($0.50 to $0.35)
$2.55 to $2.90
Q2E earnings per share
Adjusted*
Portfolio Repositioning Costs
Reported
$0.60 to $0.65
$(0.11)
$0.49 to $0.54
2016E sales change
Underlying*
Acq/Div
FX
Reported
~(5)-(2)%
~(2)%
~(2)%
~(9)-(6)%
2016
$0.53
$0.03
$0.56
Change
(29 )%
—
(25 )%
Q2E sales change
Underlying*
Acq/Div
FX
Reported
~(6)-(4)%
~(2)%
~(2)%
~(10)-(8)%
Note: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency
translation.
Total
(9 )%
(3 )%
(4 )%
(16 )%