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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Emerson Electric Co. published this content on 07 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2019 15:19:08 UTC