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Form 8-K EMERSON ELECTRIC CO For: Dec 19

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December 19, 2016 9:21 AM EST
                                            

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
_______________

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event
reported): December 19, 2016

Emerson Electric Co.
-------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
 
Missouri
---------------------------------
(State or Other Jurisdiction of Incorporation)
1-278
-------------------
(Commission
File Number)
43-0259330
---------------------------
(I.R.S. Employer Identification Number)

8000 West Florissant Avenue
St. Louis, Missouri
------------------------------------------------
(Address of Principal Executive Offices)
 
 
63136
 
------------------
(Zip Code)
 
Registrant’s telephone number, including area code:

(314) 553-2000
------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


                                            

Item 2.02 Results of Operations and Financial Condition

In connection with the strategic portfolio repositioning actions undertaken over the last eighteen months to transform Emerson Electric Co. (the "Company") into a more focused enterprise, its businesses and organization were realigned into two business platforms: Automation Solutions and Commercial & Residential Solutions. The repositioning actions included the sale of the Company's network power systems business, which was completed on November 30, 2017, and the sale of the power generation, motors and drives businesses, which were included in the former Industrial Automation segment, and which is expected to be completed early in calendar year 2017, subject to regulatory approvals. These businesses were reported in discontinued operations in the Company’s most recent Form 10-K for the year ended September 30, 2016.

Beginning in fiscal 2017, the Company will report three segments: Automation Solutions, and Climate Technologies and Tools & Home Products which together comprise Commercial & Residential Solutions. The new Automation Solutions segment includes the former Process Management segment and the remaining businesses in the former Industrial Automation segment, except for the hermetic motors business, which is now included in the Climate Technologies segment. The new Tools & Home Products segment consists of the businesses previously reported in the Commercial & Residential Solutions segment in fiscal 2016.

The Company is providing the supplemental unaudited historical results for the new segments to facilitate investors' understanding of segment results that will be reported in fiscal 2017. The information in Exhibit 99.1 does not represent a restatement of previously issued financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K. The information contained in this Form 8-K shall not be deemed “filed” for purposes of, or subject to liability under, Section 18 of the Securities Exchange Act of 1934, and shall not be deemed incorporated by reference into any Company filing with the Securities and Exchange Commission. 

Item 9.01 Financial Statements and Exhibits

The Company is including herein supplemental unaudited historical information for the years ended September 30, 2016, 2015 and 2014, and the quarterly periods within those years, reflecting the new business segments. This information is attached as Exhibit 99.1 and incorporated herein by reference.

(d) Exhibits.
Exhibit No.
 
Description
 
 
 
99.1
 
Supplemental unaudited historical information for the years ended September 30, 2016, 2015 and 2014, and the quarterly periods within those years, reflecting the new business segments.

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
EMERSON ELECTRIC CO.
(Registrant)
 
 
 
Date:
December 19, 2016
By:
/s/ John G. Shively
 
 
 
John G. Shively
Vice President and
Assistant Secretary

INDEX TO EXHIBITS
 
Exhibit No.
 
Description of Exhibits
 
 
 
99.1
 
Supplemental unaudited historical information for the years ended September 30, 2016, 2015 and 2014, and the quarterly periods within those years, reflecting the new business segments.

                                                
Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES
Consolidated Operating Results
Dollars in millions, except per share amounts

 
Years ended September 30
 
2014

 
2015

 
2016

Net sales
$
17,733

 
16,249

 
14,522

Costs and expenses:
 
 
 
 
 
   Cost of sales
9,971

 
9,241

 
8,260

   Selling, general and administrative expenses
4,164

 
3,735

 
3,464

   Gains on divestitures of businesses
—

 
1,039

 
—

   Other deductions, net
211

 
330

 
294

   Interest expense, net
196

 
175

 
188

Earnings from continuing operations before income taxes
3,191

 
3,807

 
2,316

Income taxes
953

 
1,267

 
697

Earnings from continuing operations
2,238

 
2,540

 
1,619

Discontinued operations, net of tax
(54
)
 
193

 
45

Net earnings
2,184

 
2,733

 
1,664

Less: Noncontrolling interests in earnings of subsidiaries
37

 
23

 
29

Net earnings common stockholders
$
2,147

 
2,710

 
1,635

 
 
 
 
 
 
Earnings common stockholders:
 
 
 
 
 
   Earnings from continuing operations
$
2,201

 
2,517

 
1,590

   Discontinued operations, net of tax
(54
)
 
193

 
45

Net earnings common stockholders
$
2,147

 
2,710

 
1,635

 
 
 
 
 
 
Diluted earnings per share common stockholders:
 
 
 
 
 
   Earnings from continuing operations
$
3.11

 
3.71

 
2.45

   Discontinued operations
(0.08
)
 
0.28

 
0.07

Diluted earnings per common share
$
3.03

 
3.99

 
2.52



1

                                                
Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES
Supplemental Business Segment Information
Dollars in millions; unaudited

 
Years ended September 30
Sales
2014

 
2015

 
2016

Automation Solutions
$
10,937

 
10,153

 
8,977

 
 
 
 
 
 
Climate Technologies
4,104

 
4,006

 
3,944

Tools & Home Products
1,607

 
1,625

 
1,611

Commercial & Residential Solutions
5,711

 
5,631

 
5,555

 
 
 
 
 
 
Divested businesses (a)
1,099

 
477

 
—

 
 
 
 
 
 
Sales eliminations
(14
)
 
(12
)
 
(10
)
Total
$
17,733

 
16,249

 
14,522


Earnings
2014

 
2015

 
2016

Automation Solutions
$
2,334

 
1,846

 
1,456

 
 
 
 
 
 
Climate Technologies
874

 
835

 
902

Tools & Home Products
385

 
364

 
384

Commercial & Residential Solutions
1,259

 
1,199

 
1,286

 
 
 
 
 
 
Divested businesses (a)
117

 
58

 
—

 
 
 
 
 
 
Differences in accounting methods
197

 
174

 
189

Corporate and other (b)
(520
)
 
705

 
(427
)
Interest
(196
)
 
(175
)
 
(188
)
Pretax earnings
$
3,191

 
3,807

 
2,316

 
 
 
 
 
 
(a) Divested businesses include sales and earnings related to the power transmission solutions and commercial storage businesses, which were reported in the former Industrial Automation and Commercial & Residential Solutions segments, respectively, and the embedded computing and power and connectivity solutions businesses, which were reported in the former Network Power segment.
 
 
 
 
 
 
(b) Corporate and other in 2015 includes pretax gains on divestitures of $1,039 ($611 after-tax, $0.90 per share).




2

                                                
Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES
Consolidated Operating Results and Supplemental Business Segment Information
Dollars in millions, except per share amounts; unaudited

 
Fiscal Year 2016
 
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Net sales
$
3,337

 
3,579

 
3,674

 
3,932

Costs and expenses:
 
 
 
 
 
 
 
   Cost of sales
1,923

 
2,037

 
2,081

 
2,219

   Selling, general and administrative expenses
879

 
878

 
852

 
855

   Other deductions, net
54

 
66

 
39

 
135

   Interest expense, net
47

 
46

 
46

 
49

Earnings from continuing operations before income taxes
434

 
552

 
656

 
674

Income taxes
127

 
177

 
205

 
188

Earnings from continuing operations
307

 
375

 
451

 
486

Discontinued operations, net of tax
46

 
2

 
38

 
(41
)
Net earnings
353

 
377

 
489

 
445

Less: Noncontrolling interests in earnings of subsidiaries
4

 
8

 
10

 
7

Net earnings common stockholders
$
349

 
369

 
479

 
438

 
 
 
 
 
 
 
 
Earnings common stockholders:
 
 
 
 
 
 
 
   Earnings from continuing operations
$
303

 
367

 
441

 
479

   Discontinued operations, net of tax
46

 
2

 
38

 
(41
)
Net earnings common stockholders
$
349

 
369

 
479

 
438

 
 
 
 
 
 
 
 
Diluted earnings per share common stockholders:
 
 
 
 
 
 
 
   Earnings from continuing operations
$
0.46

 
0.57

 
0.68

 
0.74

   Discontinued operations
0.07

 
—

 
0.06

 
(0.06
)
Diluted earnings per common share
$
0.53

 
0.57

 
0.74

 
0.68


Sales
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Automation Solutions
$
2,162

 
2,194

 
2,176

 
2,445

 
 
 
 
 
 
 
 
Climate Technologies
786

 
993

 
1,101

 
1,064

Tools & Home Products
392

 
394

 
400

 
425

Commercial & Residential Solutions
1,178

 
1,387

 
1,501

 
1,489

 
 
 
 
 
 
 
 
Sales eliminations
(3
)
 
(2
)
 
(3
)
 
(2
)
Total
$
3,337

 
3,579

 
3,674

 
3,932


Earnings
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Automation Solutions
$
341

 
342

 
354

 
419

 
 
 
 
 
 
 
 
Climate Technologies
133

 
226

 
287

 
256

Tools & Home Products
85

 
92

 
97

 
110

Commercial & Residential Solutions
218

 
318

 
384

 
366

 
 
 
 
 
 
 
 
Differences in accounting methods
44

 
47

 
47

 
51

Corporate and other
(122
)
 
(109
)
 
(83
)
 
(113
)
Interest
(47
)
 
(46
)
 
(46
)
 
(49
)
Pretax earnings
$
434

 
552

 
656

 
674



3

                                                
Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES
Consolidated Operating Results and Supplemental Business Segment Information
Dollars in millions, except per share amounts; unaudited
 
Fiscal Year 2015
 
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Net sales
$
4,026

 
3,934

 
4,085

 
4,204

Costs and expenses:
 
 
 
 
 
 
 
   Cost of sales
2,286

 
2,248

 
2,326

 
2,381

   Selling, general and administrative expenses
1,019

 
948

 
922

 
846

   Gains on divestitures of businesses
—

 
932

 
—

 
107

   Other deductions, net
29

 
81

 
67

 
153

   Interest expense, net
46

 
42

 
43

 
44

Earnings from continuing operations before income taxes
646

 
1,547

 
727

 
887

Income taxes
191

 
603

 
216

 
257

Earnings from continuing operations
455

 
944

 
511

 
630

Discontinued operations, net of tax
73

 
37

 
62

 
21

Net earnings
528

 
981

 
573

 
651

Less: Noncontrolling interests in earnings of subsidiaries
3

 
8

 
9

 
3

Net earnings common stockholders
$
525

 
973

 
564

 
648

 
 
 
 
 
 
 
 
Earnings common stockholders:
 
 
 
 
 
 
 
   Earnings from continuing operations
$
452

 
936

 
502

 
627

   Discontinued operations, net of tax
73

 
37

 
62

 
21

Net earnings common stockholders
$
525

 
973

 
564

 
648

 
 
 
 
 
 
 
 
Diluted earnings per share common stockholders:
 
 
 
 
 
 
 
   Earnings from continuing operations
$
0.65

 
1.36

 
0.75

 
0.95

   Discontinued operations
0.10

 
0.06

 
0.09

 
0.03

Diluted earnings per common share
$
0.75

 
1.42

 
0.84

 
0.98

Sales
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Automation Solutions
$
2,517

 
2,447

 
2,487

 
2,702

 
 
 
 
 
 
 
 
Climate Technologies
898

 
981

 
1,124

 
1,003

Tools & Home Products
405

 
391

 
405

 
424

Commercial & Residential Solutions
1,303

 
1,372

 
1,529

 
1,427

 
 
 
 
 
 
 
 
Divested businesses
209

 
118

 
72

 
78

 
 
 
 
 
 
 
 
Sales eliminations
(3
)
 
(3
)
 
(3
)
 
(3
)
Total
$
4,026

 
3,934

 
4,085

 
4,204

Earnings
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Automation Solutions
$
483

 
386

 
462

 
515

 
 
 
 
 
 
 
 
Climate Technologies
153

 
205

 
266

 
211

Tools & Home Products
94

 
83

 
89

 
98

Commercial & Residential Solutions
247

 
288

 
355

 
309

 
 
 
 
 
 
 
 
Divested businesses
24

 
12

 
9

 
13

 
 
 
 
 
 
 
 
Differences in accounting methods
45

 
41

 
43

 
45

Corporate and other
(107
)
 
862

 
(99
)
 
49

Interest
(46
)
 
(42
)
 
(43
)
 
(44
)
Pretax earnings
$
646

 
1,547

 
727

 
887


4

                                                
Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES
Consolidated Operating Results and Supplemental Business Segment Information
Dollars in millions, except per share amounts; unaudited
 
Fiscal Year 2014
 
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Net sales
$
3,984

 
4,200

 
4,603

 
4,946

Costs and expenses:
 
 
 
 
 
 
 
   Cost of sales
2,314

 
2,361

 
2,567

 
2,729

   Selling, general and administrative expenses
1,063

 
1,014

 
1,027

 
1,060

   Other deductions, net
48

 
91

 
49

 
23

   Interest expense, net
55

 
46

 
48

 
47

Earnings from continuing operations before income taxes
504

 
688

 
912

 
1,087

Income taxes
124

 
224

 
287

 
318

Earnings from continuing operations
380

 
464

 
625

 
769

Discontinued operations, net of tax
97

 
90

 
113

 
(354
)
Net earnings
477

 
554

 
738

 
415

Less: Noncontrolling interests in earnings of subsidiaries
15

 
7

 
10

 
5

Net earnings common stockholders
$
462

 
547

 
728

 
410

 
 
 
 
 
 
 
 
Earnings common stockholders:
 
 
 
 
 
 
 
   Earnings from continuing operations
$
365

 
457

 
615

 
764

   Discontinued operations, net of tax
97

 
90

 
113

 
(354
)
Net earnings common stockholders
$
462

 
547

 
728

 
410

 
 
 
 
 
 
 
 
Diluted earnings per share common stockholders:
 
 
 
 
 
 
 
   Earnings from continuing operations
$
0.51

 
0.65

 
0.87

 
1.08

   Discontinued operations
0.14

 
0.12

 
0.16

 
(0.50
)
Diluted earnings per common share
$
0.65

 
0.77

 
1.03

 
0.58


Sales
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Automation Solutions
$
2,452

 
2,532

 
2,758

 
3,195

 
 
 
 
 
 
 
 
Climate Technologies
785

 
1,040

 
1,190

 
1,089

Tools & Home Products
389

 
387

 
411

 
420

Commercial & Residential Solutions
1,174

 
1,427

 
1,601

 
1,509

 
 
 
 
 
 
 
 
Divested businesses
361

 
244

 
247

 
247

 
 
 
 
 
 
 
 
Sales eliminations
(3
)
 
(3
)
 
(3
)
 
(5
)
Total
$
3,984

 
4,200

 
4,603

 
4,946


Earnings
1st Quarter
 
2nd Quarter
 
3rd Quarter
 
4th Quarter
Automation Solutions
$
467

 
481

 
577

 
809

 
 
 
 
 
 
 
 
Climate Technologies
126

 
222

 
294

 
232

Tools & Home Products
90

 
93

 
99

 
103

Commercial & Residential Solutions
216

 
315

 
393

 
335

 
 
 
 
 
 
 
 
Divested businesses
10

 
33

 
33

 
41

 
 
 
 
 
 
 
 
Differences in accounting methods
44

 
47

 
50

 
56

Corporate and other
(178
)
 
(142
)
 
(93
)
 
(107
)
Interest
(55
)
 
(46
)
 
(48
)
 
(47
)
Pretax earnings
$
504

 
688

 
912

 
1,087


5


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