8-KEarnings & ResultsExhibits & Filings

EMERSON ELECTRIC CO 8-K Report, Financial Results (Nov 29, 2022)

Filed November 29, 2022For Securities:EMR

Summary

Emerson Electric Co. (EMR) has filed an 8-K report detailing significant portfolio transformations aimed at accelerating its business strategy. The company is reclassifying its Climate Technologies, InSinkErator, and Therm-O-Disc businesses as discontinued operations for all periods presented, effective fiscal year 2023. This strategic shift includes the recent completion of the sale of Therm-O-Disc and InSinkErator, and the announced sale of a majority stake in its Climate Technologies business, expected to close in the first half of calendar year 2023. Furthermore, Emerson is reorganizing its reporting structure to six segments and two business groups, including the combination of its industrial software businesses with Aspen Technology, Inc., in which Emerson holds a 55 percent stake. This updated segment structure and the treatment of divested businesses as discontinued operations are intended to provide investors with a clearer view of the company's ongoing business performance and strategic direction. The report also includes supplemental unaudited historical financial information to reflect these changes.

Key Highlights

  • 1Emerson is reclassifying Climate Technologies, InSinkErator, and Therm-O-Disc as discontinued operations beginning in fiscal year 2023.
  • 2The sale of the InSinkErator business was completed on October 31, 2022.
  • 3A majority stake sale in the Climate Technologies business was announced and is expected to close in H1 2023.
  • 4Emerson is merging its industrial software businesses with Aspen Technology, Inc., retaining a 55% ownership stake.
  • 5The company is restructuring its reporting into six segments and two business groups to reflect portfolio changes.
  • 6Supplemental unaudited historical financial data is provided to illustrate the impact of these divestitures and segment realignments.
  • 7Certain product sales previously under Control Systems & Software will be reclassified to Discrete Automation.

Frequently Asked Questions

Emerson is reclassifying Climate Technologies, InSinkErator, and Therm-O-Disc as discontinued operations to reflect its strategic divestitures and portfolio transformation. This provides investors with a clearer understanding of the ongoing business performance separate from divested assets.

Emerson combined its industrial software businesses with Aspen Technology, Inc., and will own 55 percent of the combined entity. This strategic move aims to consolidate and grow its software capabilities.

Beginning in fiscal year 2023, Emerson will report financial results across six segments and two business groups. This new structure accounts for the completed and planned divestitures, as well as the integration with AspenTech, and includes a reclassification of certain product sales into new segments.

No, the supplemental unaudited historical financial information provided in this Form 8-K is not a restatement of previously issued financial statements. It is presented to facilitate investor understanding of the impact of discontinued operations, held-for-sale assets, and the new segment reporting structure.