Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Quarter Ended March 31,
2014
2015
Net sales
Costs and expenses:
Cost of sales
SG&A expenses
Gain on sale of business
Other deductions, net
Interest expense, net
Earnings before income taxes
Income taxes
Net earnings
Less: Noncontrolling interests in earnings of subsidiaries
Net earnings common stockholders
$5,812
$5,400
3,417
1,394
—
137
47
817
263
554
7
$547
3,234
1,318
932
136
40
1,604
625
979
6
$973
Diluted avg. shares outstanding
705.2
684.1
Diluted earnings per share common stockholders
$0.77
$1.42
Quarter Ended March 31,
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Artesyn equity loss
Other
Total
$58
21
34
24
$137
$53
44
—
39
$136
Percent
Change
(7)%
96%
77%
78%
84%
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Six Months Ended March 31
2014
2015
Net sales
Costs and expenses:
Cost of sales
SG&A expenses
Gain on sale of business
Other deductions, net
Interest expense, net
Earnings before income taxes
Income taxes
Net earnings
Less: Noncontrolling interests in earnings of subsidiaries
Net earnings common stockholders
$11,418
$10,987
6,787
2,838
—
232
101
1,460
429
1,031
22
$1,009
6,541
2,723
932
200
86
2,369
861
1,508
10
$1,498
Diluted avg. shares outstanding
706.7
689.4
Diluted earnings per share common stockholders
$1.42
$2.17
Six Months Ended March 31
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Artesyn equity loss
Other
Total
$115
34
34
49
$232
$108
53
—
39
$200
Percent
Change
(4)%
62%
46%
48%
53%
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended March 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
$2,724
4,563
2,233
683
10,203
3,692
7,875
1,810
766
$24,346
$3,256
4,299
2,107
682
10,344
3,570
6,805
1,555
694
$22,968
Liabilities and equity
Short-term borrowings and current
maturities of long-term debt
Accounts payables
Accrued expenses
Income taxes
Total current liabilities
Long-term debt
Other liabilities
Total equity
Total liabilities and equity
$2,661
2,522
2,583
66
7,832
3,836
2,153
10,525
$24,346
$3,358
2,407
2,595
410
8,770
3,272
1,958
8,968
$22,968
Table 4
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Six Months Ended March 31
2014
2015
Operating activities
Net earnings
Depreciation and amortization
Changes in operating working capital
Gain on sale of business, net of tax
Other, net
Net cash provided by operating activities
Investing activities
Capital expenditures
Purchase of businesses, net of cash and equivalents acquired
Divestitures of businesses
Other, net
Net cash (used by) provided by investing activities
Financing activities
Net increase in short-term borrowings
Principal payments of long-term debt
Dividends paid
Purchases of common stock
Purchases of noncontrolling interests
Other, net
Net cash used by financing activities
Effect of exchange rate changes on cash and equivalents
Increase (decrease) in cash and equivalents
$1,031
419
(273)
—
89
1,266
$1,508
412
(530)
(528)
67
929
(397)
(576)
268
(55)
(760)
(359)
(145)
1,391
(86)
801
1,090
(321)
(606)
(596)
(574)
(37)
(1,044)
854
(251)
(647)
(1,351)
—
(20)
(1,415)
(13)
(208)
(551)
107
Beginning cash and equivalents
3,275
3,149
Ending cash and equivalents
$2,724
$3,256
Table 5
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended March 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
$2,108
1,232
1,171
1,041
460
6,012
(200)
$5,812
$2,042
1,034
1,063
982
465
5,586
(186)
$5,400
$383
187
96
186
99
951
60
(147)
(47)
$817
$299
144
34
170
91
738
53
853
(40)
$1,604
$5
3
6
7
—
$21
$22
2
13
4
3
$44
Table 6
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Six Months Ended March 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
$4,149
2,381
2,474
1,827
926
11,757
(339)
$11,418
$4,141
2,186
2,182
1,882
945
11,336
(349)
$10,987
$756
349
179
293
199
1,776
117
(332)
(101)
$1,460
$691
308
113
296
194
1,602
111
742
(86)
$2,369
$8
5
10
10
1
$34
$25
4
14
6
4
$53
Reconciliations of Non-GAAP Financial Measures & Other
Table 7
The following reconciles non-GAAP measures (denoted by *) with the most directly comparable GAAP
measure (dollars in millions, except per share amounts):
Q2 sales change
Underlying*
Acq/Div
FX
Reported
Process
Industrial
Mgmt
Auto
2%
(2 )%
—%
(8 )%
(5 )%
(6 )%
(3 )%
(16 )%
2015E sales change
Underlying*
Acq/Div
FX
Reported
~0-2%
~(2)%
~(5)%
~(7)-(5)%
Network
Power
(3 )%
(1 )%
(5 )%
(9 )%
Climate
Comm &
Tech
Res Solns
(3 )%
3%
—%
—%
(3 )%
(2 )%
(6 )%
1%
Q2 2014
$0.77
—
$0.77
Q2 2015
$1.42
($0.77)
$0.65
Total
—%
(2 )%
(5 )%
(7 )%
EPS
Reported
Gain on sale of power transmission solutions
Adjusted*
% Change
84%
(100)%
(16)%
Note: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency
translation.