8-KOther Events

EMERSON ELECTRIC CO 8-K Report, Corporate Update (Mar 17, 2020)

Filed March 17, 2020For Securities:EMR

Summary

Emerson Electric Co. (EMR) announced on March 17, 2020, that its Board of Directors has authorized a new share repurchase program of up to 60 million shares of common stock. This new authorization is incremental to the existing 2015 program, which is nearing completion with approximately 7 million shares remaining. This action signals management's confidence in the company's financial health and its commitment to returning value to shareholders. While the new authorization is for an indefinite period ("over the next several years"), Emerson expects to repurchase approximately $1.5 billion in shares during fiscal year 2020, subject to market conditions. The repurchases can be executed through open market or private transactions, with the specifics determined by management. These repurchased shares are intended for employee benefit plans and other corporate uses, aligning with Emerson's established capital allocation strategy.

Key Highlights

  • 1Board of Directors authorized the repurchase of 60 million shares of common stock.
  • 2This new authorization is in addition to an existing program nearing completion.
  • 3Approximately 7 million shares remain under the prior 2015 authorization.
  • 4Emerson expects to repurchase approximately $1.5 billion in shares during fiscal year 2020.
  • 5Share repurchases are dependent on market conditions and other factors.
  • 6Repurchased shares may be utilized for employee benefit plans and corporate purposes.
  • 7The company included standard forward-looking and cautionary statements regarding risks and uncertainties.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce that Emerson Electric Co.'s Board of Directors has authorized a new share repurchase program for up to 60 million shares of its common stock.

This new authorization of 60 million shares is in addition to a previous authorization from November 2015, which is nearly completed and has about 7 million shares left. The company plans to utilize both, with an expectation to repurchase around $1.5 billion in shares in fiscal year 2020.

The shares may be repurchased over the next several years. The timing, manner, price, and exact amount of shares to be repurchased will be determined by management based on market conditions and other factors they deem appropriate. There is no guarantee on the specifics, and the program can be suspended at any time.

Repurchased shares may be used for the Company’s employee benefit plans and other corporate purposes, consistent with its capital allocation plan.