Summary
Emerson Electric Co.'s 2012 10-K filing reveals a diversified global technology company with five core business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The company demonstrated resilience with net sales reaching $24.412 billion, a slight increase from the previous year. However, earnings from continuing operations saw a decline to $1,968 million, impacted by a significant $528 million goodwill impairment charge in 2012. Despite economic uncertainties and a challenging planning environment for fiscal year 2013, with orders slowing due to caution in business investment and deteriorating market visibility, Emerson projects modest sales growth in the low single digits, driven by Process Management and Commercial & Residential Solutions. The company's strategy emphasizes product performance, quality, service, and competitive global cost. Emerson actively manages its intellectual property and engages in strategic acquisitions, though it acknowledges the integration risks associated with these. The company's global operations, with a majority of manufacturing facilities outside the U.S., expose it to currency fluctuations and geopolitical risks. Emerson is committed to research and development, with R&D expenses totaling $547 million in 2012.
Financial Highlights
56 data points| Revenue | $24.41B |
| Cost of Revenue | $14.64B |
| Gross Profit | $9.77B |
| R&D Expenses | $547.00M |
| SG&A Expenses | $5.44B |
| Operating Income | $1.97B |
| Net Income | $1.97B |
| EPS (Basic) | $2.68 |
| EPS (Diluted) | $2.67 |
| Shares Outstanding (Basic) | 730.60M |
| Shares Outstanding (Diluted) | 734.60M |
Key Highlights
- 1Emerson Electric Co. operates through five diversified business segments: Process Management (31% of sales), Industrial Automation (21%), Network Power (25%), Climate Technologies (15%), and Commercial & Residential Solutions (8%).
- 2Total net sales for the fiscal year ended September 30, 2012, were $24.412 billion, a slight increase from $24.222 billion in 2011.
- 3Earnings from continuing operations decreased to $1,968 million in 2012 from $2,454 million in 2011, largely due to a $528 million goodwill impairment charge.
- 4The company reported an order backlog of $6.254 billion as of September 30, 2012, indicating a healthy pipeline of future business.
- 5Emerson's global manufacturing footprint includes approximately 235 locations worldwide, with about 160 located outside the United States, primarily in Europe and Asia.
- 6Research and development expenses were $547 million in 2012, reflecting the company's commitment to innovation and new product development.
- 7The company authorized the repurchase of up to 80 million shares under its May 2008 program and repurchased 5.55 million shares in the third quarter of 2012.