Summary
Emerson Electric Co. (EMR) filed an 8-K on December 19, 2016, detailing significant strategic portfolio repositioning. The company is realigning its organizational structure into two primary business platforms: Automation Solutions and Commercial & Residential Solutions. This strategic shift includes the divestiture of several businesses, such as the network power systems business (completed November 30, 2017) and the power generation, motors, and drives businesses (expected to close early 2017). These divested businesses are being reported as discontinued operations. Starting fiscal year 2017, Emerson will report its results across three distinct segments: Automation Solutions, Climate Technologies, and Tools & Home Products. This move aims to present a more focused enterprise to investors. The company is providing supplemental unaudited historical financial information for these new segments to aid in understanding future reporting. This data, found in Exhibit 99.1, is intended to complement, not restate, previously issued financial statements and should be viewed alongside their Form 10-K.
Key Highlights
- 1Emerson Electric is undergoing a significant strategic portfolio repositioning to become a more focused enterprise.
- 2The company is realigning into two business platforms: Automation Solutions and Commercial & Residential Solutions.
- 3Divestiture of Network Power, Power Generation, Motors, and Drives businesses are either completed or expected in early 2017.
- 4These divested businesses will be reported under discontinued operations.
- 5Beginning fiscal 2017, reporting segments will be Automation Solutions, Climate Technologies, and Tools & Home Products.
- 6Supplemental unaudited historical financial data reflecting the new segment structure is provided for investor transparency.
- 7The provided supplemental information does not restate prior financial statements but aids in understanding future segment reporting.