Summary
Emerson Electric Co.'s 2010 10-K filing reveals a diversified global technology and engineering company organized into five key segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Tools and Storage. The company's strategy focuses on delivering solutions through high-quality products and engineering services across various industrial, commercial, and consumer markets. Despite operating in highly competitive environments, Emerson aims to maintain market leadership through continuous innovation and a strong global presence, with significant sales in the United States, Europe, and Asia. The filing indicates a robust order backlog of $5.6 billion as of September 29, 2010, up from $4.6 billion the previous year, suggesting positive future sales momentum. Management expressed optimism for fiscal year 2011, forecasting underlying sales growth of 7-10% and net sales growth of 12-15%, driven by anticipated economic improvements and strategic acquisitions. The company is committed to research and development, with substantial investment in innovation across its segments, and manages its global operations with a focus on cost-efficiency and market responsiveness, while navigating risks associated with international operations and currency fluctuations.
Financial Highlights
55 data points| Revenue | $21.04B |
| Cost of Revenue | $12.71B |
| Gross Profit | $8.33B |
| R&D Expenses | $473.00M |
| SG&A Expenses | $4.82B |
| Operating Income | $1.98B |
| Net Income | $2.16B |
| EPS (Basic) | $2.87 |
| EPS (Diluted) | $2.84 |
| Shares Outstanding (Basic) | 750.70M |
| Shares Outstanding (Diluted) | 757.00M |
Key Highlights
- 1Emerson Electric Co. operates a diversified business model across five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Tools & Storage, serving a wide array of industrial, commercial, and consumer markets globally.
- 2The company reported a consolidated order backlog of $5.6 billion as of September 29, 2010, a significant increase from $4.6 billion in the prior year, signaling strong demand and expected future revenue.
- 3Emerson forecasts robust growth for fiscal year 2011, projecting underlying sales to increase by 7-10% and net sales to grow by 12-15%, reflecting confidence in improving economic conditions and strategic initiatives.
- 4Research and development spending remained consistent, with $473 million invested in 2010, underscoring Emerson's commitment to innovation and new product development across its diverse segments.
- 5The company's global footprint is substantial, with approximately 127,700 employees and manufacturing facilities in about 240 locations worldwide, with a majority situated outside the United States.
- 6Emerson actively repurchased shares, acquiring 577,000 shares for approximately $27.5 million during the three months ended September 30, 2010, indicating a commitment to returning value to shareholders.
- 7The company proactively manages market risks, including competitive pressures, raw material price fluctuations, foreign currency exchange rates, and potential disruptions in global operations, through strategic sourcing, hedging activities, and diversified operations.