Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Quarter Ended September 30,
2013
2014
Net sales
$
Costs and expenses:
Cost of sales
SG&A expenses
Goodwill impairment
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
$
6,812
Diluted avg. shares outstanding
717.3
Diluted earnings per common share
$
4,008
1,432
25
110
56
1,181
373
808
13
795
1.10
$
6,807
$
3,918
1,453
508
65
47
816
401
415
5
410
$
$
54
13
35
8
110
—%
(31)%
(49)%
(49)%
699.6
$
0.58
Quarter Ended September 30,
2013
2014
Other deductions, net
Amortization of intangibles
Rationalization of operations
Currency loss/(gain)
Other
Total
Percent
Change
$
$
55
10
(8 )
8
65
(47)%
Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
Year Ended September 30,
2013
2014
Net sales
$
Costs and expenses:
Cost of sales
SG&A expenses
Goodwill impairment
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
$
Diluted avg. shares outstanding
Diluted earnings per common share
24,669
14,717
5,648
528
362
218
3,196
1,130
2,066
62
2,004
$
24,537
$
14,379
5,715
508
393
194
3,348
1,164
2,184
37
2,147
722.9
$
2.76
$
$
220
78
52
—
12
362
(1)%
5%
6%
7%
704.1
$
3.03
Year Ended September 30,
2013
2014
Other deductions, net
Amortization of intangibles
Rationalization of operations
Currency loss/(gain)
Artesyn equity loss
Other
Total
Percent
Change
$
$
225
55
32
34
47
393
10%
Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)
Year Ended September 30,
2013
2014
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 payables
Accrued expenses
Income taxes
Total current liabilities
Long-term debt
Other liabilities
Total equity
Total liabilities and equity
$
$
$
$
3,275
4,808
1,895
1,021
10,999
3,605
7,509
1,672
926
24,711
$
1,587
2,725
3,184
129
7,625
4,055
2,313
10,718
24,711
$
$
$
3,149
5,019
2,057
642
10,867
3,802
7,182
1,689
637
24,177
2,465
2,951
2,876
162
8,454
3,559
1,997
10,167
24,177
Table 4
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)
Year Ended September 30,
2013
2014
Operating activities
Net earnings
Depreciation and amortization
Changes in operating working capital
Pension funding
Goodwill impairment, net of tax
Other, net
Net cash provided by operating activities
$
Investing activities
Capital expenditures
Purchase of businesses, net of cash and equivalents acquired
Divestiture of business
Other, net
Net cash used by investing activities
2,066
819
42
(160 )
496
386
3,649
$
2,184
831
114
(130 )
508
185
3,692
(678 )
(19 )
3
(95 )
(789 )
(767 )
(610 )
363
(145 )
(1,159 )
374
496
(521 )
(1,181 )
(1,110 )
(10 )
19
(1,933 )
622
1
(329 )
(1,210 )
(1,048 )
(574 )
(21 )
(2,559 )
Effect of exchange rate changes on cash and equivalents
(19 )
(100 )
Increase (decrease) in cash and equivalents
908
(126 )
Financing activities
Net increase in short-term borrowings
Proceeds from long-term debt
Principal payments on long-term debt
Dividends paid
Purchases of common stock
Purchase of noncontrolling interests
Other, net
Net cash used by financing activities
Beginning cash and equivalents
Ending cash and equivalents
2,367
$
3,275
3,275
$
3,149
Table 5
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Quarter Ended September 30,
2013
2014
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
$
$
$
$
$
$
2,512
1,258
1,709
1,017
483
6,979
(167 )
6,812
$
603
221
216
205
113
1,358
61
(182 )
(56 )
1,181
$
4
3
4
1
1
13
$
$
$
$
2,723
1,320
1,362
1,091
506
7,002
(195 )
6,807
689
239
173
194
117
1,412
72
(621 )
(47 )
816
5
—
2
3
—
10
Table 6
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)
Year Ended September 30,
2013
2014
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
$
$
$
$
$
$
8,610
4,885
6,155
3,876
1,865
25,391
(722 )
24,669
$
1,809
777
554
716
404
4,260
221
(1,067 )
(218 )
3,196
$
15
27
25
3
8
78
$
$
$
$
9,189
4,990
5,073
4,109
1,924
25,285
(748 )
24,537
1,918
802
459
737
424
4,340
252
(1,050 )
(194 )
3,348
17
7
15
14
2
55
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):
Q4 sales change
Underlying*
Acq/Div
FX
Reported
Process Industrial
Mgmt
Auto
5 %
5%
4 %
—%
(1 )%
—%
8 %
5%
Q4 earnings per share
2013
Excluding charges*
$ 1.18
Impairment/tax charges
(0.08 )
Reported
$ 1.10
2014 sales change
Underlying*
Acq/Div
FX
Reported
Process Industrial
Mgmt
Auto
4 %
2%
4 %
—%
(1 )%
—%
7 %
2%
2014 earnings per share
2013
Excluding charges*
$ 3.54
Impairment/tax charges
(0.78 )
Reported
$ 2.76
Cash flow
Operating cash flow
Capital expenditures
Free cash flow*
2015E sales change
Underlying*
Acq/Div
FX
Reported
2014
$
1.30
(0.72 )
$
0.58
2014
$ 3,692
(767 )
$ 2,925
2014
$
3.75
(0.72 )
$
3.03
Network
Power
1 %
(20 )%
(1 )%
(20 )%
Climate
Comm &
Tech
Res Solns
7%
5%
—%
—%
—%
—%
7%
5%
Total
4 %
(3 )%
(1 )%
— %
Climate
Comm &
Tech
Res Solns
6%
3%
—%
—%
—%
—%
6%
3%
Total
3 %
(4 )%
— %
(1 )%
Change
10 %
(57 )%
(47 )%
Network
Power
2 %
(19 )%
(1 )%
(18 )%
Change
6 %
4 %
10 %
% 2015E
Dividend
35 %
44 %
4-5%
(2 )%
(2 )%
0-1%
Note: Underlying sales and orders exclude the impact of acquisitions, divestitures and currency
translation.