Summary
Emerson Electric Co. in its 2014 10-K filing, for the fiscal year ending September 29, 2014, presents a diversified global business structure with five core segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. The Process Management segment was the largest contributor to sales, representing 36% of the total, followed by Industrial Automation and Network Power, each at 20%. Geographically, the United States and Canada represented the largest market at 46% of sales, with Asia and Europe also being significant regions. The company highlighted its robust intellectual property portfolio and ongoing research and development efforts, with R&D expenses of $541 million in 2014. Despite a competitive landscape and potential risks related to raw material prices, currency fluctuations, and international operations, Emerson's financial position remained solid. The company demonstrated a consistent ability to generate cash flow, evidenced by its share repurchase program and dividend payments. The filing also detailed Emerson's commitment to growth through strategic acquisitions and integration, while managing its global manufacturing footprint, with a majority of its 220 locations situated outside the United States. Investors should note the company's proactive approach to risk management, including hedging strategies and a focus on operational efficiency across its diverse business segments.
Financial Highlights
56 data points| Revenue | $17.73B |
| Cost of Revenue | $9.97B |
| Gross Profit | $10.16B |
| R&D Expenses | $356.00M |
| SG&A Expenses | $4.16B |
| Operating Income | $2.20B |
| Net Income | $2.15B |
| EPS (Basic) | $3.05 |
| EPS (Diluted) | $3.03 |
| Shares Outstanding (Basic) | 700.20M |
| Shares Outstanding (Diluted) | 704.10M |
Key Highlights
- 1Emerson operates through five distinct business segments: Process Management (36% of sales), Industrial Automation (20%), Network Power (20%), Climate Technologies (16%), and Commercial & Residential Solutions (8%).
- 2The United States and Canada is the largest geographic market, accounting for 46% of total sales, followed by Asia (22%) and Europe (20%).
- 3The company's order backlog was $6,714 million at September 30, 2014, showing a slight increase from the prior year, with the majority expected to be shipped within one year.
- 4Research and development expenses were $541 million in 2014, indicating a continued investment in innovation.
- 5Emerson actively repurchased its common stock, with 4,125,000 shares bought back under publicly announced plans during the fiscal year.
- 6The company highlighted a diversified manufacturing base with 220 global locations, approximately 150 of which are outside the United States.
- 7Long-term debt decreased to $3,559 million in 2014 from $4,055 million in 2013, reflecting a strengthening balance sheet.