Missouri
(State
or other jurisdiction of
incorporation
or organization)
|
43-0259330
(I.R.S.
Employer
Identification
No.)
|
|
8000
W. Florissant Ave.
P.O.
Box 4100
St.
Louis, Missouri
(Address
of principal executive offices)
|
63136
(Zip
Code)
|
Large
accelerated filer x
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
(Do not check if a smaller reporting company)
|
Smaller
reporting company ¨
|
FORM
10-Q
|
Three Months
|
Nine Months
|
|||||||||||||||
|
Ended June 30,
|
Ended June 30,
|
||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
||||||||||||
Net
sales
|
$ | 5,091 | 5,641 | 15,593 | 15,796 | |||||||||||
Costs
and expenses:
|
||||||||||||||||
Cost
of sales
|
3,253 | 3,430 | 9,922 | 9,682 | ||||||||||||
Selling,
general and administrative expenses
|
1,089 | 1,194 | 3,401 | 3,585 | ||||||||||||
Other
deductions, net
|
131 | 70 | 321 | 255 | ||||||||||||
Interest
expense (net of interest income of $3, $5, $19 and $14,
respectively)
|
65 | 64 | 157 | 196 | ||||||||||||
Earnings
from continuing operations before income taxes
|
553 | 883 | 1,792 | 2,078 | ||||||||||||
Income
taxes
|
155 | 273 | 541 | 607 | ||||||||||||
Earnings
from continuing operations
|
398 | 610 | 1,251 | 1,471 | ||||||||||||
Discontinued
operations, net of tax
|
- | (9 | ) | - | (15 | ) | ||||||||||
Net
earnings
|
398 | 601 | 1,251 | 1,456 | ||||||||||||
Less:
Noncontrolling interests in earnings of subsidiaries
|
11 | 16 | 33 | 41 | ||||||||||||
Net
earnings attributable to Emerson
|
$ | 387 | 585 | 1,218 | 1,415 | |||||||||||
Basic
earnings per share attributable to Emerson:
|
||||||||||||||||
Earnings
from continuing operations
|
$ | 0.52 | 0.79 | 1.61 | 1.90 | |||||||||||
Discontinued
operations
|
- | (0.01 | ) | - | (0.02 | ) | ||||||||||
Basic
earnings per common share
|
$ | 0.52 | 0.78 | 1.61 | 1.88 | |||||||||||
Diluted
earnings per share attributable to Emerson:
|
||||||||||||||||
Earnings
from continuing operations
|
$ | 0.51 | 0.78 | 1.60 | 1.88 | |||||||||||
Discontinued
operations
|
- | (0.01 | ) | - | (0.02 | ) | ||||||||||
Diluted
earnings per common share
|
$ | 0.51 | 0.77 | 1.60 | 1.86 | |||||||||||
Earnings
attributable to Emerson:
|
||||||||||||||||
Earnings
from continuing operations
|
$ | 387 | 594 | 1,218 | 1,430 | |||||||||||
Discontinued
operations, net of tax
|
- | (9 | ) | - | (15 | ) | ||||||||||
Net
earnings attributable to Emerson
|
$ | 387 | 585 | 1,218 | 1,415 | |||||||||||
Cash
dividends per common share
|
$ | 0.33 | 0.335 | 0.99 | 1.005 |
FORM
10-Q
|
September 30,
|
June 30,
|
|||||||
2009
|
2010
|
|||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and equivalents
|
$ | 1,560 | 3,424 | |||||
Receivables,
less allowances of $93 and $97, respectively
|
3,623 | 3,793 | ||||||
Inventories
|
1,855 | 2,114 | ||||||
Other
current assets
|
615 | 627 | ||||||
Total
current assets
|
7,653 | 9,958 | ||||||
Property,
plant and equipment, net
|
3,500 | 3,289 | ||||||
Other
assets
|
||||||||
Goodwill
|
7,078 | 7,596 | ||||||
Other
|
1,532 | 2,115 | ||||||
Total
other assets
|
8,610 | 9,711 | ||||||
$ | 19,763 | 22,958 | ||||||
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
||||||||
Current
liabilities
|
||||||||
Short-term
borrowings and current maturities of long-term debt
|
$ | 577 | 2,290 | |||||
Accounts
payable
|
1,949 | 2,228 | ||||||
Accrued
expenses
|
2,378 | 2,616 | ||||||
Income
taxes
|
52 | 123 | ||||||
Total
current liabilities
|
4,956 | 7,257 | ||||||
Long-term
debt
|
3,998 | 4,586 | ||||||
Other
liabilities
|
2,103 | 2,026 | ||||||
Stockholders’
equity
|
||||||||
Preferred
stock, $2.50 par value per share;
|
||||||||
authorized,
5,400,000 shares; issued, none
|
- | - | ||||||
Common
stock, $0.50 par value per share;
|
||||||||
authorized,
1,200,000,000 shares; issued, 953,354,012 shares;
|
||||||||
outstanding,
751,872,857 shares and 752,629,414 shares,
respectively
|
477 | 477 | ||||||
Additional
paid-in capital
|
157 | 174 | ||||||
Retained
earnings
|
14,714 | 15,373 | ||||||
Accumulated
other comprehensive income
|
(496 | ) | (792 | ) | ||||
Cost
of common stock in treasury, 201,481,155 shares and
|
||||||||
200,724,598
shares, respectively
|
(6,297 | ) | (6,307 | ) | ||||
Emerson
stockholders’ equity
|
8,555 | 8,925 | ||||||
Noncontrolling
interests in subsidiaries
|
151 | 164 | ||||||
Total
equity
|
8,706 | 9,089 | ||||||
$ | 19,763 | 22,958 |
FORM
10-Q
|
Nine Months Ended
|
||||||||
|
June 30,
|
|||||||
2009
|
2010
|
|||||||
Operating
activities
|
||||||||
Net
earnings
|
$ | 1,251 | 1,456 | |||||
Adjustments
to reconcile net earnings to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Depreciation
and amortization
|
542 | 605 | ||||||
Changes
in operating working capital
|
69 | 28 | ||||||
Pension
funding
|
(263 | ) | (209 | ) | ||||
Other
|
135 | 142 | ||||||
Net
cash provided by operating activities
|
1,734 | 2,022 | ||||||
Investing
activities
|
||||||||
Capital
expenditures
|
(388 | ) | (300 | ) | ||||
Purchases
of businesses, net of cash and equivalents acquired
|
(735 | ) | (1,372 | ) | ||||
Other
|
18 | 17 | ||||||
Net
cash used in investing activities
|
(1,105 | ) | (1,655 | ) | ||||
Financing
activities
|
||||||||
Net
increase in short-term borrowings
|
40 | 1,747 | ||||||
Proceeds
from long-term debt
|
1,254 | 601 | ||||||
Principal
payments on long-term debt
|
(680 | ) | (50 | ) | ||||
Dividends
paid
|
(749 | ) | (756 | ) | ||||
Purchases
of treasury stock
|
(718 | ) | (71 | ) | ||||
Other
|
(94 | ) | 109 | |||||
Net
cash provided by (used in) financing activities
|
(947 | ) | 1,580 | |||||
Effect
of exchange rate changes on cash and equivalents
|
(77 | ) | (83 | ) | ||||
Increase
(decrease) in cash and equivalents
|
(395 | ) | 1,864 | |||||
Beginning
cash and equivalents
|
1,777 | 1,560 | ||||||
Ending
cash and equivalents
|
$ | 1,382 | 3,424 | |||||
Changes
in operating working capital
|
||||||||
Receivables
|
$ | 839 | (228 | ) | ||||
Inventories
|
328 | (235 | ) | |||||
Other
current assets
|
16 | (67 | ) | |||||
Accounts
payable
|
(800 | ) | 307 | |||||
Accrued
expenses
|
(148 | ) | 115 | |||||
Income
taxes
|
(166 | ) | 136 | |||||
$ | 69 | 28 |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
|
1.
|
In
the opinion of management, the accompanying unaudited consolidated
financial statements include all adjustments necessary for a fair
presentation of operating results for the interim periods
presented. Adjustments consist of normal and recurring
accruals. The consolidated financial statements are presented
in accordance with the requirements of Form 10-Q and consequently do not
include all disclosures required for annual financial statements presented
in conformity with U.S. generally accepted accounting principles
(GAAP). For further information, refer to the consolidated
financial statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended September 30,
2009. Certain prior year amounts have been recast to conform to
the current year presentation.
|
|
2.
|
In
the first quarter 2010, the Company adopted updates to ASC 260, Earnings per Share,
regarding the two-class method of computing earnings per share
(EPS). This method requires earnings to be allocated to
participating securities (for Emerson, certain employee stock awards) in
the EPS computation based on each security’s respective dividend
rate. This change had an inconsequential impact on EPS for all
periods presented.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
Basic
shares outstanding
|
749.6 | 751.1 | 755.0 | 750.8 | ||||||||||||
Dilutive
shares
|
5.1 | 6.6 | 4.8 | 6.1 | ||||||||||||
Diluted
shares outstanding
|
754.7 | 757.7 | 759.8 | 756.9 |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
|
3.
|
The
change in stockholders’ equity balances for the nine months ended June 30,
2010 follows (in millions):
|
Emerson
Stockholders’
Equity
|
Noncontrolling
Interests in
Subsidiaries
|
Total Equity
|
||||||||||
September
30, 2009
|
$ | 8,555 | 151 | 8,706 | ||||||||
Net
earnings
|
1,415 | 41 | 1,456 | |||||||||
Other
comprehensive income
|
(296 | ) | (2 | ) | (298 | ) | ||||||
Cash
dividends
|
(756 | ) | (38 | ) | (794 | ) | ||||||
Net
treasury stock purchases and other
|
7 | 12 | 19 | |||||||||
June
30, 2010
|
$ | 8,925 | 164 | 9,089 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
Net
earnings
|
$ | 398 | 601 | 1,251 | 1,456 | |||||||||||
Foreign
currency translation
|
238 | (214 | ) | (285 | ) | (308 | ) | |||||||||
Cash
flow hedges and other
|
60 | (23 | ) | 6 | 10 | |||||||||||
696 | 364 | 972 | 1,158 | |||||||||||||
Less:
Noncontrolling interests
|
12 | 13 | 28 | 39 | ||||||||||||
Amount
attributable to Emerson
|
$ | 684 | 351 | 944 | 1,119 |
|
4.
|
Net
periodic pension expense is summarized as follows (in
millions):
|
Three Months Ended
June 30,
|
Nine Months Ended
June 30,
|
|||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
||||||||||||
Service
cost
|
$ | 16 | 18 | 51 | 56 | |||||||||||
Interest
cost
|
51 | 55 | 163 | 166 | ||||||||||||
Expected
return on plan assets
|
(67 | ) | (76 | ) | (210 | ) | (229 | ) | ||||||||
Net
amortization
|
20 | 35 | 61 | 104 | ||||||||||||
$ | 20 | 32 | 65 | 97 |
Three Months Ended
June 30,
|
Nine Months Ended
June 30,
|
|||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
||||||||||||
Service
cost
|
$ | 1 | 1 | 3 | 3 | |||||||||||
Interest
cost
|
8 | 6 | 22 | 18 | ||||||||||||
Net
amortization
|
1 | - | 5 | 1 | ||||||||||||
$ | 10 | 7 | 30 | 22 |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
|
5.
|
Other
deductions, net are summarized as follows (in
millions):
|
Three Months Ended
June 30,
|
Nine Months Ended
June 30,
|
|||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
||||||||||||
Other deductions, net
|
||||||||||||||||
Rationalization
of operations
|
$ | 83 | 27 | 190 | 101 | |||||||||||
Amortization
of intangibles
|
31 | 44 | 78 | 124 | ||||||||||||
Other
|
23 | (1 | ) | 88 | 33 | |||||||||||
(Gains)/losses,
net
|
(6 | ) | - | (35 | ) | (3 | ) | |||||||||
$ | 131 | 70 | 321 | 255 |
|
6.
|
Rationalization
of operations expense reflects costs associated with the Company’s efforts
to continuously improve operational efficiency and expand globally, in
order to remain competitive on a worldwide basis. The change in
the liability for rationalization costs during the nine months ended June
30, 2010 follows (in millions):
|
September 30,
|
June 30,
|
|||||||||||||||
|
2009
|
Expense
|
Paid/Utilized
|
2010
|
||||||||||||
Severance
and benefits
|
$ | 112 | 63 | 111 | 64 | |||||||||||
Lease/contract
terminations
|
7 | 5 | 6 | 6 | ||||||||||||
Fixed
asset write-downs
|
- | 7 | 7 | - | ||||||||||||
Vacant
facility and other shutdown costs
|
2 | 10 | 10 | 2 | ||||||||||||
Start-up
and moving costs
|
1 | 16 | 16 | 1 | ||||||||||||
$ | 122 | 101 | 150 | 73 |
Three Months Ended
June 30,
|
Nine Months Ended
June 30,
|
|||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
||||||||||||
Process
Management
|
$ | 18 | 6 | 26 | 22 | |||||||||||
Industrial
Automation
|
13 | 11 | 25 | 44 | ||||||||||||
Network
Power
|
32 | 5 | 82 | 21 | ||||||||||||
Climate
Technologies
|
14 | 4 | 36 | 9 | ||||||||||||
Appliance
and Tools
|
6 | 1 | 21 | 5 | ||||||||||||
$ | 83 | 27 | 190 | 101 |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
|
7.
|
Other
Financial Information (in
millions):
|
September 30,
|
June 30,
|
|||||||
2009
|
2010
|
|||||||
Inventories
|
||||||||
Finished
products
|
$
|
697
|
756
|
|||||
Raw
materials and work in process
|
1,158
|
1,358
|
||||||
$
|
1,855
|
2,114
|
||||||
Property, plant and equipment,
net
|
||||||||
Property,
plant and equipment, at cost
|
$
|
8,894
|
8,827
|
|||||
Less: Accumulated
depreciation
|
(5,394
|
)
|
(5,538
|
)
|
||||
$
|
3,500
|
3,289
|
||||||
Goodwill
by business
segment
|
||||||||
Process
Management
|
$
|
2,242
|
2,230
|
|||||
Industrial
Automation
|
1,304
|
1,330
|
||||||
Network
Power
|
2,454
|
2,973
|
||||||
Climate
Technologies
|
473
|
461
|
||||||
Appliance
and Tools
|
605
|
602
|
||||||
$
|
7,078
|
7,596
|
Other assets, other
|
||||||||
Intellectual
property and customer relationships
|
$
|
930
|
1,164
|
|||||
Capitalized
software
|
214
|
206
|
||||||
LANDesk
discontinued operations
|
-
|
357
|
||||||
Other
|
388
|
388
|
||||||
$
|
1,532
|
2,115
|
Accrued expenses include the
following:
|
||||||||
Employee
compensation
|
$
|
536
|
712
|
|||||
Customer
advance payments
|
$
|
315
|
348
|
|||||
Product
warranty liability
|
$
|
199
|
216
|
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
September 30,
|
June 30,
|
|||||||
2009
|
2010
|
|||||||
Other liabilities
|
||||||||
Pension
plans
|
$ | 613 | 461 | |||||
Postretirement
plans, excluding current portion
|
460 | 456 | ||||||
Deferred
income taxes
|
406 | 458 | ||||||
Other
|
624 | 651 | ||||||
$ | 2,103 | 2,026 |
|
8.
|
Summarized
information about the Company’s results of continuing operations by
business segment follows (in
millions):
|
Three months ended June 30,
|
||||||||||||||||
Sales
|
Earnings
|
|||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
Process
Management
|
$ | 1,481 | 1,511 | 220 | 311 | |||||||||||
Industrial
Automation
|
813 | 956 | 47 | 122 | ||||||||||||
Network
Power
|
1,330 | 1,418 | 137 | 182 | ||||||||||||
Climate
Technologies
|
859 | 1,106 | 135 | 221 | ||||||||||||
Appliance
and Tools
|
771 | 850 | 108 | 152 | ||||||||||||
5,254 | 5,841 | 647 | 988 | |||||||||||||
Differences
in accounting methods
|
48 | 52 | ||||||||||||||
Corporate
and other
|
(77 | ) | (93 | ) | ||||||||||||
Eliminations/Interest
|
(163 | ) | (200 | ) | (65 | ) | (64 | ) | ||||||||
$ | 5,091 | 5,641 | 553 | 883 |
Nine months ended June 30,
|
||||||||||||||||
Sales
|
Earnings
|
|||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
Process
Management
|
$ | 4,512 | 4,321 | 776 | 768 | |||||||||||
Industrial
Automation
|
2,876 | 2,699 | 313 | 301 | ||||||||||||
Network
Power
|
4,095 | 4,150 | 397 | 545 | ||||||||||||
Climate
Technologies
|
2,284 | 2,798 | 258 | 497 | ||||||||||||
Appliance
and Tools
|
2,269 | 2,341 | 248 | 396 | ||||||||||||
16,036 | 16,309 | 1,992 | 2,507 | |||||||||||||
Differences
in accounting methods
|
145 | 147 | ||||||||||||||
Corporate
and other
|
(188 | ) | (380 | ) | ||||||||||||
Eliminations/Interest
|
(443 | ) | (513 | ) | (157 | ) | (196 | ) | ||||||||
$ | 15,593 | 15,796 | 1,792 | 2,078 |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
|
9.
|
Following
is a discussion regarding the Company’s use of financial
instruments.
|
|
Hedging
Activities
|
|
As
of June 30, 2010, the notional amount of foreign currency which has been
hedged totaled approximately $1.7 billion and commodity hedges outstanding
included a combined total of approximately 87 million pounds of copper and
aluminum. The majority of hedging gains and losses deferred as
of June 30, 2010 will generally be recognized over the next 12 months as
the underlying forecasted transactions
occur.
|
Derivatives Receiving Deferral
Accounting
|
||||||||||||||||||
Gain (Loss) Reclassified into Earnings
|
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
||||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||||
Location
|
||||||||||||||||||
Foreign
currency
|
Sales
|
$ | (6 | ) | (2 | ) | (21 | ) | (6 | ) | ||||||||
Foreign
currency
|
Cost
of sales
|
(6 | ) | 3 | (26 | ) | 2 | |||||||||||
Commodity
|
Cost
of sales
|
(28 | ) | 17 | (85 | ) | 38 | |||||||||||
$ | (40 | ) | 18 | (132 | ) | 34 |
Gain (Loss) Recognized in
|
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
||||||||||||||||
Other Comprehensive Income
|
2009
|
2010
|
2009
|
2010
|
||||||||||||||
Foreign
currency
|
$ | 34 | 14 | (59 | ) | 42 | ||||||||||||
Commodity
|
20 | (33 | ) | (66 | ) | 8 | ||||||||||||
$ | 54 | (19 | ) | (125 | ) | 50 |
Derivatives Not Receiving Deferral Accounting
|
||||||||||||||||||
Gain (Loss) Recognized in Earnings
|
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
||||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||||
Location
|
||||||||||||||||||
Foreign
currency
|
Other
income (deductions)
|
$ | (38 | ) | 50 | (62 | ) | 122 | ||||||||||
Commodity
|
Cost
of sales
|
1 | (2 | ) | (9 | ) | (1 | ) | ||||||||||
$ | (37 | ) | 48 | (71 | ) | 121 |
September 30, 2009
|
June 30, 2010
|
|||||||||||||||
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||||||||
Derivatives
Receiving Deferral Accounting
|
||||||||||||||||
Foreign
currency
|
$ | 15 | (33 | ) | 38 | (10 | ) | |||||||||
Commodity
|
$ | 30 | (4 | ) | 5 | (10 | ) | |||||||||
Derivatives
Not Receiving Deferral Accounting
|
||||||||||||||||
Foreign
currency
|
$ | 6 | (7 | ) | 1 | (8 | ) | |||||||||
Commodity
|
$ | 2 | (2 | ) | - | - |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
10.
|
On
November 6, 2009, the Company acquired SSB Group GmbH (SSB), a designer
and manufacturer of electrical pitch systems and control technology used
in wind turbine generators, for approximately $145 million in
cash. SSB had annual revenues in 2009 of approximately $115
million and is reported in the Industrial Automation business
segment.
|
|
On
December 11, 2009, the Company acquired Avocent Corporation, a leader in
enhancing companies’ datacenter solutions capability, which strongly
positioned Emerson for the growth of energy management in datacenters
worldwide, for $1.2 billion in cash. Avocent, excluding its
LANDesk business, had annual revenues of $390 million in 2009 and is
reported in the Network Power business segment. In connection
with the acquisition, the Company immediately began pursuing the sale of
the LANDesk business unit which is not a strategic fit with
Emerson. LANDesk sells management and security software suites
and had annual revenues of $150 million in 2009. Potential
acquirers have evaluated the business and submitted proposals, which are
under consideration. The Company expects to complete the sale
in 2010. LANDesk results for the three and nine months ended June 30, 2010
are reported as discontinued operations, with assets totaling
approximately $0.4 billion and liabilities of approximately $0.1
billion. The purchase price allocations for Avocent and LANDesk
are preliminary, and may be adjusted based on valuations to be completed
during 2010 (see Note 7).
|
|
The
Company is considering the sale of its appliance motors and U.S.
commercial and industrial motors businesses, which have combined annual
sales in excess of $800 million and are included in the Appliance and
Tools business segment. Potential acquirers have submitted
proposals, which are under consideration. The Company has not yet made a
final decision.
|
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Three months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions, except per share amounts)
|
||||||||||||
Net
sales
|
$ | 5,091 | 5,641 | 11 | % | |||||||
Gross
profit
|
$ | 1,838 | 2,211 | 20 | % | |||||||
Percent
of sales
|
36.1 | % | 39.2 | % | ||||||||
SG&A
|
$ | 1,089 | 1,194 | |||||||||
Percent
of sales
|
21.4 | % | 21.2 | % | ||||||||
Other
deductions, net
|
$ | 131 | 70 | |||||||||
Interest
expense, net
|
$ | 65 | 64 | |||||||||
Earnings
from continuing operations before income taxes
|
$ | 553 | 883 | 59 | % | |||||||
Percent
of sales
|
10.9 | % | 15.7 | % | ||||||||
Earnings
from continuing operations - Emerson
|
$ | 387 | 594 | 53 | % | |||||||
Net
earnings - Emerson
|
$ | 387 | 585 | 51 | % | |||||||
Percent
of sales
|
7.6 | % | 10.4 | % | ||||||||
Diluted
EPS – Earnings from continuing operations
|
$ | 0.51 | 0.78 | 53 | % | |||||||
Diluted
EPS – Net earnings
|
$ | 0.51 | 0.77 | 51 | % |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Three months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars
in millions)
|
||||||||||||
Sales
|
$ | 1,481 | 1,511 | 2 | % | |||||||
Earnings
|
$ | 220 | 311 | 41 | % | |||||||
Margin
|
14.8 | % | 20.6 | % |
Three months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 813 | 956 | 18 | % | |||||||
Earnings
|
$ | 47 | 122 | 165 | % | |||||||
Margin
|
5.7 | % | 12.8 | % |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Three months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 1,330 | 1,418 | 7 | % | |||||||
Earnings
|
$ | 137 | 182 | 31 | % | |||||||
Margin
|
10.4 | % | 12.8 | % |
Three months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 859 | 1,106 | 29 | % | |||||||
Earnings
|
$ | 135 | 221 | 64 | % | |||||||
Margin
|
15.7 | % | 20.1 | % |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Three months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 771 | 850 | 10 | % | |||||||
Earnings
|
$ | 108 | 152 | 41 | % | |||||||
Margin
|
14.0 | % | 18.0 | % |
Nine months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions, except per share amounts)
|
||||||||||||
Net
sales
|
$ | 15,593 | 15,796 | 1 | % | |||||||
Gross
profit
|
$ | 5,671 | 6,114 | 8 | % | |||||||
Percent
of sales
|
36.4 | % | 38.7 | % | ||||||||
SG&A
|
$ | 3,401 | 3,585 | |||||||||
Percent
of sales
|
21.8 | % | 22.7 | % | ||||||||
Other
deductions, net
|
$ | 321 | 255 | |||||||||
Interest
expense, net
|
$ | 157 | 196 | |||||||||
Earnings
from continuing operations before income taxes
|
$ | 1,792 | 2,078 | 16 | % | |||||||
Percent
of sales
|
11.5 | % | 13.2 | % | ||||||||
Earnings
from continuing operations - Emerson
|
$ | 1,218 | 1,430 | 17 | % | |||||||
Net
earnings - Emerson
|
$ | 1,218 | 1,415 | 16 | % | |||||||
Percent
of sales
|
7.8 | % | 9.0 | % | ||||||||
Diluted
EPS – Earnings from continuing operations
|
$ | 1.60 | 1.88 | 18 | % | |||||||
Diluted
EPS – Net earnings
|
$ | 1.60 | 1.86 | 16 | % |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Nine months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 4,512 | 4,321 | (4 | )% | |||||||
Earnings
|
$ | 776 | 768 | (1 | )% | |||||||
Margin
|
17.2 | % | 17.8 | % |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Nine months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 2,876 | 2,699 | (6 | )% | |||||||
Earnings
|
$ | 313 | 301 | (4 | )% | |||||||
Margin
|
10.9 | % | 11.1 | % |
Nine months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 4,095 | 4,150 | 1 | % | |||||||
Earnings
|
$ | 397 | 545 | 37 | % | |||||||
Margin
|
9.7 | % | 13.1 | % |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Nine months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 2,284 | 2,798 | 22 | % | |||||||
Earnings
|
$ | 258 | 497 | 93 | % | |||||||
Margin
|
11.3 | % | 17.8 | % |
Nine months ended June 30,
|
2009
|
2010
|
Change
|
|||||||||
(dollars in millions)
|
||||||||||||
Sales
|
$ | 2,269 | 2,341 | 3 | % | |||||||
Earnings
|
$ | 248 | 396 | 60 | % | |||||||
Margin
|
10.9 | % | 16.9 | % |
September 30,
2009
|
June 30,
2010
|
|||||||
Working
capital (in millions)
|
$ | 2,697 | 2,701 | |||||
Current
ratio
|
1.5
to 1
|
1.4
to 1
|
||||||
Total
debt-to-total capital
|
34.8 | % | 43.5 | % | ||||
Net
debt-to-net capital
|
25.7 | % | 27.9 | % | ||||
Interest
coverage ratio
|
10.9 | X | 10.9 | X |
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Period
|
Total Number of
Shares
Purchased (000s)
|
Average Price
Paid per Share
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs (000s)
|
Maximum Number of
Shares that May Yet Be
Purchased Under the
Plans or Programs (000s)
|
||||||||||||
April
2010
|
315 | $51.64 | 315 | 50,522 | ||||||||||||
May
2010
|
300 | $48.38 | 300 | 50,222 | ||||||||||||
June
2010
|
330 | $45.72 | 330 | 49,892 | ||||||||||||
Total
|
945 | $48.54 | 945 | 49,892 |
12
|
Ratio
of Earnings to Fixed Charges.
|
|
31
|
Certifications
pursuant to Exchange Act Rule 13a-14(a).
|
|
32
|
Certifications
pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section
1350.
|
|
101
|
Attached
as Exhibit 101 to this report are the following documents formatted in
XBRL (Extensible Business Reporting Language): (i) Consolidated Statements
of Earnings for the three and nine months ended June 30, 2009 and 2010,
(ii) Consolidated Balance Sheets at September 30, 2009 and June 30, 2010,
(iii) Consolidated Statements of Cash Flows for the nine months ended June
30, 2009 and 2010, and (iv) Notes to Consolidated Financial Statements for
the three and nine months ended June 30, 2010. In accordance
with Rule 406T of Regulation S-T, the XBRL related information in Exhibit
101 to this Quarterly Report on Form 10-Q shall not be deemed to be
“filed” for purposes of Section 18 of the Exchange Act, and shall not be
deemed “filed” or part of any registration statement or prospectus for
purposes of Section 11 or 12 under the Securities Act or the Exchange Act,
or otherwise subject to liability under those sections, except as shall be
expressly set forth by specific reference in such
filing.
|
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
EMERSON
ELECTRIC CO.
|
|||
Date:
August 4, 2010
|
By
|
/s/ Frank J. Dellaquila
|
|
Frank
J. Dellaquila
|
|||
Senior
Vice President and Chief Financial Officer
|
|||
(On
behalf of the registrant and as Chief Financial Officer)
|
EMERSON
ELECTRIC CO. AND SUBSIDIARIES
|
FORM
10-Q
|
Exhibit No.
|
Exhibit
|
|
12
|
Ratio
of Earnings to Fixed Charges.
|
|
31
|
Certifications
pursuant to Exchange Act Rule 13a-14(a).
|
|
32
|
Certifications
pursuant to Exchange Act Rule 13a-14(b) and 18 U.S.C. Section
1350.
|
|
101
|
Attached
as Exhibit 101 to this report are the following documents formatted in
XBRL (Extensible Business Reporting Language): (i) Consolidated Statements
of Earnings for the three and nine months ended June 30, 2009 and 2010,
(ii) Consolidated Balance Sheets at September 30, 2009 and June 30, 2010,
(iii) Consolidated Statements of Cash Flows for the nine months ended June
30, 2009 and 2010, and (iv) Notes to Consolidated Financial Statements for
the three and nine months ended June 30, 2010. In accordance
with Rule 406T of Regulation S-T, the XBRL related information in Exhibit
101 to this Quarterly Report on Form 10-Q shall not be deemed to be
“filed” for purposes of Section 18 of the Exchange Act, and shall not be
deemed “filed” or part of any registration statement or prospectus for
purposes of Section 11 or 12 under the Securities Act or the Exchange Act,
or otherwise subject to liability under those sections, except as shall be
expressly set forth by specific reference in such
filing.
|