Skip to content
AnalystLens

EMERSON ELECTRIC CO Annual Report (Amendment), Year Ended Sep 30, 2000

Filing Date
Filed July 3, 2001
Period End
September 30, 2000
Security
EMR
In the record · 2016–202610-K1010-Q338-K163

EMR filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 163 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Apr ’17Apr ’17
  2. Leadership change8-K · Nov ’19Nov ’19
  3. Material agreement8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K/A filed July 3, 2001. Cited figures are marked; the original filing is the authoritative source.

Emerson Electric's Amendment No. 1 to its fiscal 2000 Form 10-K (year ended September 30, 2000) reports record net sales of $15.5 billiona, up 8.9%, and record net earnings of $1.42 billion, up 8.3%.

Diluted EPS rose 10% to $3.30b, and return on average stockholders' equity was 22.6%. Growth came mainly from the Electronics and Telecommunications segment, whose sales rose 58% to $3.4 billion on strong demand for network power and connectivity products and on two 2000 acquisitions, Jordan Telecommunication Products and Ericsson Energy Systems. The Company also cited underlying organic growth of over 7% and a return to positive underlying sales in the Process Control business in the fourth quarter.

The amendment does not restate results. It removes the non-GAAP metric "diluted earnings per share excluding goodwill amortization" from the income statement and adds divested businesses to the segment disclosures in Note 12. Investors should note that management's own EPS figure excluding goodwill amortization was $3.63c, which is no longer presented in the financial statements.

Balance sheet leverage rose meaningfully. Total debt climbed to $4.6 billiond from $3.3 billion, driven by roughly $2.0 billion of acquisition spending and continued share repurchases. The debt-to-capital ratio increased to 41.8% from 34.6%, and the interest coverage ratio fell to 8.6 times from 11.7 times.

Operating cash flow of $1.84 billion was roughly flat. Management still described the company as financially strong, with $3.0 billion in commercial paper backup credit lines and a 2000 dividend of $1.43 per share, which was raised 7% to an annualized $1.53. The Company also stated its intent to move the dividend payout ratio toward 40-45% of prior-year earnings over time.

02—Key points

Key Highlights

  1. Record fiscal 2000 net sales of $15.5 billion, up 8.9%, with underlying growth above 7% excluding acquisitions, divestitures and currency; U.S. sales rose 13% and international sales rose 3%.
  2. Net earnings of $1.42 billion (up 8.3%) and diluted EPS of $3.30 (up 10.0%); return on average stockholders' equity of 22.6%.
  3. Electronics and Telecommunications sales rose 58% to $3.4 billion, with underlying growth near 30%, and the segment became Emerson's largest entering fiscal 2001; segment earnings rose 91% to $454 million.
  4. Acquisitions cost about $1.97 billion in cash in 2000, including Jordan Telecommunication Products (about $985 million) and Ericsson Energy Systems (about $725 million); acquired companies had annualized sales of about $1.16 billion.
  5. Total debt rose to $4.6 billion, lifting the debt-to-capital ratio to 41.8% from 34.6% and reducing interest coverage to 8.6x from 11.7x.
  6. Dividends rose to $1.43 per share (up 10%), with the quarterly rate increased 7% in November 2000 to an annualized $1.53; the share repurchase program is expected to slow and extend into 2002 or 2003.
  7. Amendment removes the non-GAAP 'EPS excluding goodwill amortization' from the income statement and adds divested businesses to segment reporting, with no change to reported GAAP results.

03—Questions

Frequently Asked Questions

  1. Why did Emerson file an amendment to its fiscal 2000 10-K?

    The amendment removes the 'diluted earnings per common share, excluding goodwill amortization' figure from the Consolidated Statements of Earnings and reports divested businesses within the business segments in Note 12, along with the corresponding segment discussion in Item 7. The reported GAAP financial results are unchanged.

  2. How strong was Emerson's growth in fiscal 2000?

    Net sales were a record $15.5 billion, up 8.9%, and underlying sales grew more than 7% excluding acquisitions, divestitures and currency effects. Net earnings rose 8.3% to $1.42 billion, and diluted EPS rose 10% to $3.30. Growth was concentrated in Electronics and Telecommunications, while Process Control sales were only slightly down on an underlying basis for most of the year.

  3. Has Emerson's balance sheet become more leveraged?

    Yes. Total debt increased to $4.6 billion from $3.3 billion, largely to fund acquisitions and share repurchases. The debt-to-capital ratio rose to 41.8% from 34.6%, and interest coverage fell to 8.6 times from 11.7 times. Management points to $3.0 billion in backup credit lines and continued strong operating cash flow of $1.84 billion as sources of liquidity.

  4. What is the outlook for dividends and share repurchases?

    The quarterly dividend was raised 7% in November 2000 to an annualized $1.53 per share. Management intends to move the dividend payout ratio over time toward 40-45% of prior-year earnings. Share repurchases are expected to slow because of the repositioning program, with the existing 40 million-share authorization, of which nearly 30 million had been bought back by September 30, 2000, anticipated to run into 2002 or 2003.

04—Continue

← View all 10-K filings