Summary
Emerson Electric Co. (EMR) filed an 8-K on September 9, 2010, to disclose updated financial guidance following recent strategic transactions. During an investor conference call, management provided details on the anticipated impact of the Chloride acquisition and the pending divestitures of the LANDesk and Motors and Appliance Controls businesses. The company confirmed that underlying business expectations remain consistent with those previously communicated on August 3, 2010. This filing primarily serves to inform investors about the net positive impact of these transactions on the company's earnings per share for fiscal years 2010 and 2011.
Key Highlights
- 1Emerson Electric Co. announced updated FY2010 earnings per share (EPS) guidance following the Chloride acquisition and pending divestitures.
- 2The company expects the net impact of these transactions to be positive for FY2010 EPS.
- 3Reported FY2010 EPS is now projected to be in the range of $2.70 to $2.85.
- 4This represents a $0.10 to $0.15 positive net impact compared to the previous guidance of $2.60 to $2.70.
- 5The acquisition of Chloride is completed, and the dispositions of LANDesk and Motors and Appliance Controls are expected to be completed by September 30, 2010.
- 6Underlying business expectations for Emerson remain unchanged from prior disclosures.
- 7A slide containing detailed projections on the effects of these transactions on FY2010 and FY2011 EPS was presented and filed as an exhibit.