Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Quarter Ended June 30,
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 stockholders
Percent
Change
$6,312
$5,503
(13)%
3,674
1,424
96
46
1,072
334
738
10
$728
3,269
1,276
122
40
796
222
574
10
$564
(26)%
Diluted avg. shares outstanding
703.3
668.9
Diluted earnings per share common stockholders
$1.03
$0.84
Quarter Ended June 30,
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Other
Total
$55
11
30
$96
$52
36
34
$122
(22)%
(23)%
(18)%
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Nine Months Ended June 30,
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
$17,730
$16,490
10,461
4,262
—
328
147
2,532
763
1,769
32
$1,737
9,810
3,999
932
322
126
3,165
1,083
2,082
20
$2,062
Diluted avg. shares outstanding
705.6
682.6
Diluted earnings per share common stockholders
$2.45
$3.01
Nine Months Ended June 30,
2014
2015
Other deductions, net
Amortization of intangibles
Rationalization of operations
Other
Total
$170
45
113
$328
$160
89
73
$322
Percent
Change
(7)%
25%
18%
19%
23%
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended June 30,
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
$3,049
4,772
2,253
739
10,813
3,737
7,917
1,768
880
$25,115
$3,393
4,272
2,144
835
10,644
3,610
6,930
1,575
705
$23,464
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
$2,975
2,645
2,736
177
8,533
3,565
2,144
10,873
$25,115
$3,179
2,402
2,678
53
8,312
4,290
2,063
8,799
$23,464
Table 4
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Nine Months Ended June 30,
2014
2015
Operating activities
Net earnings
Depreciation and amortization
Changes in operating working capital
Pension funding
Gain on divestiture of business, after tax
Income taxes paid on divestiture gain
Other, net
Net cash provided by operating activities
$1,769
623
(157)
(90)
—
—
139
2,284
$2,082
613
(530)
(21)
(528)
(360)
172
1,428
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
(573)
(610)
264
(107)
(1,026)
(516)
(250)
1,399
(86)
547
Financing activities
Net increase in short-term borrowings
Proceeds from long-term debt
Principal payments of long-term debt
Dividends paid
Purchases of common stock
Purchases of noncontrolling interests
Other, net
Net cash used by financing activities
1,133
1
(323)
(910)
(783)
(574)
(19)
(1,475)
945
1,000
(504)
(960)
(2,041)
—
(12)
(1,572)
(9)
(159)
Effect of exchange rate changes on cash and equivalents
Increase (decrease) in cash and equivalents
(226)
244
Beginning cash and equivalents
3,275
3,149
Ending cash and equivalents
$3,049
$3,393
Table 5
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended June 30,
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
$2,317
1,289
1,237
1,191
492
6,526
(214)
$6,312
$2,084
990
1,028
1,125
477
5,704
(201)
$5,503
$473
214
107
250
108
1,152
63
(97)
(46)
$1,072
$373
156
37
222
98
886
54
(104)
(40)
$796
$4
2
3
1
1
$11
$12
4
17
2
1
$36
Table 6
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Nine Months Ended June 30,
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
$6,466
3,670
3,711
3,018
1,418
18,283
(553)
$17,730
$6,225
3,176
3,210
3,007
1,422
17,040
(550)
$16,490
$1,229
563
286
543
307
2,928
180
(429)
(147)
$2,532
$1,064
464
150
518
292
2,488
165
638
(126)
$3,165
$12
7
13
11
2
$45
$37
8
31
8
5
$89
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):
Q3 sales change
Underlying*
Acq/Div
FX
Other
Reported
2015E sales change
Underlying*
Acq/Div
FX
Reported
Process
Industrial
Mgmt
Auto
(4 )%
(5 )%
—%
(11 )%
(6 )%
(7 )%
—%
—%
(10 )%
(23 )%
Network
Power
(11 )%
(1 )%
(5 )%
—%
(17 )%
Climate
Comm &
Tech
Res Solns
(3 )%
1%
—%
—%
(3 )%
(2 )%
—%
(2 )%
(6 )%
(3 )%
Q3 2014
$—
$—
$—
Q3 2015
$—
$—
$—
Total
(5 )%
(3 )%
(5 )%
—%
(13 )%
~(2)%
~(2)%
~(5)%
~(9)%
EPS
Reported
Gain on sale of power transmission solutions
Adjusted*
% Change
—%
—%
—%
Note: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency
translation.