Emerson Electric : Description Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________

FORM 10-Q

• QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to __________________

Commission file number 1-278

EMERSON ELECTRIC CO.

(Exact name of registrant as specified in its charter)

Missouri	43-0259330
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

8000 W. Florissant Ave.
P.O. Box 4100
St. Louis, Missouri	63136
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: ( 314 ) 553-2000

Securities registered pursuant to Section 12(b) of the Act:

	Trading
Title of each class	Symbol(s)	Name of each exchange on which registered
Common Stock of $0.50 par value per share	EMR	New York Stock Exchange
		Chicago Stock Exchange
0.375% Notes due 2024	EMR 24	New York Stock Exchange
1.250% Notes due 2025	EMR 25A	New York Stock Exchange
2.000% Notes due 2029	EMR 29	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer ☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common stock of $0.50 par value per share outstanding at July 31, 2019 : 615,101,462 shares.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Statements of Earnings

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three and nine months ended June 30, 2018 and 2019 (Dollars in millions, except per share amounts; unaudited)

		Three Months Ended		Nine Months Ended
		June 30,			June 30,
		2018			2019		2018			2019
Net sales	$	4,456			4,684	12,520			13,401
Costs and expenses:
Cost of sales		2,514			2,683	7,147			7,714
Selling, general and administrative expenses		1,058			1,126	3,088			3,348
Other deductions, net		77			65	243			172
Interest expense (net of interest income of $10, $7, $35 and $19, respectively)		39			43		113			134
Earnings before income taxes		768			767	1,929			2,033
Income taxes		49			155		327			429
Net earnings		719			612	1,602			1,604
Less: Noncontrolling interests in earnings of subsidiaries		7			8		16			15
Net earnings common stockholders	$	712			604		1,586			1,589
Basic earnings per share common stockholders	$	1.13			0.98		2.50			2.57
Diluted earnings per share common stockholders	$	1.12			0.97		2.49			2.55
Cash dividends per common share	$	0.485			0.49	1.455			1.47

See accompanying Notes to Consolidated Financial Statements.

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Consolidated Statements of Comprehensive Income

EMERSON ELECTRIC CO. & SUBSIDIARIES

Three and nine months ended June 30, 2018 and 2019 (Dollars in millions; unaudited)

	Three Months Ended June		Nine Months Ended June
			30,			30,
			2018			2019		2018			2019
Net earnings	$	719			612	1,602			1,604
Other comprehensive income (loss), net of tax:
Foreign currency translation			(273)			(93)	(118)			(40)
Pension and postretirement			22			13	67			38
Cash flow hedges			(14)			(8)		(22)			2
Total other comprehensive income (loss)			(265)			(88)		(73)			-
Comprehensive income			454			524	1,529			1,604
Less: Noncontrolling interests in comprehensive						8						16
income of subsidiaries			7				16
Comprehensive income common stockholders	$	447			516	1,513			1,588

See accompanying Notes to Consolidated Financial Statements.

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Consolidated Balance Sheets

EMERSON ELECTRIC CO. & SUBSIDIARIES

(Dollars and shares in millions, except per share amounts; unaudited)
		Sept 30, 2018	June 30, 2019
ASSETS
Current assets
Cash and equivalents	$	1,093		1,603
Receivables, less allowances of $113 and $100, respectively		3,023		2,901
Inventories		1,813		2,061
Other current assets		690		785
Total current assets		6,619		7,350
Property, plant and equipment, net		3,562		3,614
Other assets
Goodwill		6,455		6,544
Other intangible assets		2,751		2,691
Other		1,003		1,118
Total other assets		10,209		10,353
Total assets	$	20,390		21,317
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings and current maturities of long-term debt	$	1,623		1,877
Accounts payable		1,943		1,785
Accrued expenses		2,534		2,453
Income taxes		64		103
Total current liabilities		6,164		6,218
Long-term debt		3,137		4,336
Other liabilities		2,099		1,959
Equity
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding,				477
629.2 shares and 615.1 shares, respectively		477
Additional paid-in-capital		348		387
Retained earnings		23,072		23,777
Accumulated other comprehensive income (loss)		(1,015)		(1,016)
Cost of common stock in treasury, 324.2 shares and 338.3 shares, respectively		(13,935)		(14,870)
Common stockholders' equity		8,947		8,755
Noncontrolling interests in subsidiaries		43		49
Total equity		8,990		8,804
Total liabilities and equity	$	20,390		21,317

See accompanying Notes to Consolidated Financial Statements.

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