Form: 8-K

Current report

November 29, 2022

Documents

Exhibit 99.1

Consolidated Statements of Earnings
EMERSON ELECTRIC CO. & SUBSIDIARIES

Years ended September 30
(Dollars in millions, except per share amounts; unaudited)
 
  2021  2022 
Net sales $ 12,932  13,804 
Cost of sales 7,202  7,498 
Selling, general and administrative expenses 3,494  3,614 
Gain on subordinated interest —  (453)
Other deductions, net 319  519 
Interest expense, net 155  194 
Earnings from continuing operations before income taxes 1,762  2,432 
Income taxes 346  549 
Earnings from continuing operations 1,416  1,883 
Discontinued operations, net of tax: 2021, $239; 2022, $306 911  1,347 
Net earnings 2,327  3,230 
Less: Noncontrolling interests in subsidiaries 24  (1)
Net earnings common stockholders $ 2,303  3,231 
Earnings common stockholders:
     Earnings from continuing operations $ 1,414  1,886 
     Discontinued operations 889  1,345 
Net earnings common stockholders $ 2,303  3,231 
Basic earnings per share common stockholders:
     Earnings from continuing operations $ 2.36  3.17 
     Discontinued operations 1.49  2.27 
Basic earnings per common share $ 3.85  5.44 
Diluted earnings per share common stockholders:
Earnings from continuing operations $ 2.35  3.16 
Discontinued operations 1.47  2.25 
Diluted earnings per common share $ 3.82  5.41 
Weighted average outstanding shares:
Basic 598.1  592.9 
Diluted 601.8  596.3 













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Consolidated Balance Sheet
EMERSON ELECTRIC CO. & SUBSIDIARIES

September 30 (Dollars and shares in millions, except per share amounts; unaudited)
  2022 
ASSETS  
Current assets  
Cash and equivalents $ 1,804 
Receivables, less allowances of $90 2,176 
Inventories 1,661 
Other current assets 1,450 
Current assets held-for-sale 1,415 
Total current assets 8,506 
Property, plant and equipment, net 2,098 
Other assets
Goodwill 13,944 
Other intangible assets 6,571 
Other 2,312 
Noncurrent assets held-for-sale 2,241 
Total other assets 25,068 
Total assets $ 35,672 
LIABILITIES AND EQUITY  
Current liabilities  
Short-term borrowings and current maturities of long-term debt $ 2,115 
Accounts payable 1,216 
Accrued expenses 3,057 
Current liabilities held-for-sale 1,389 
Total current liabilities 7,777 
Long-term debt 8,259 
Other liabilities 3,195 
Noncurrent liabilities held-for-sale 125 
Equity  
Common stock, $0.50 par value; authorized, 1,200.0 shares; issued, 953.4 shares; outstanding, 591.4 shares 477 
Additional paid-in-capital 57 
Retained earnings 28,053 
Accumulated other comprehensive income (loss) (1,485)
Cost of common stock in treasury, 362.0 shares (16,738)
Common stockholders’ equity 10,364 
Noncontrolling interests in subsidiaries 5,952 
Total equity 16,316 
Total liabilities and equity $ 35,672 







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Consolidated Statements of Cash Flows
EMERSON ELECTRIC CO. & SUBSIDIARIES

Years ended September 30 (Dollars in millions; unaudited)
  2021  2022 
Operating activities    
Net earnings $ 2,327  3,230 
Earnings from discontinued operations, net of tax (911) (1,347)
Adjustments to reconcile net earnings to net cash provided by operating activities:
        Depreciation and amortization 762  842 
        Stock compensation 197  125 
        Pension expense 28  2 
        Pension funding (41) (43)
        Changes in operating working capital 167  (312)
        Gain on subordinated interest —  (453)
        Other, net (71) 4 
            Cash from continuing operations 2,458  2,048 
            Cash from discontinued operations 1,117  874 
            Cash provided by operating activities 3,575  2,922 
Investing activities
Capital expenditures (404) (299)
Purchases of businesses, net of cash and equivalents acquired (1,592) (5,702)
Divestitures of businesses 30  17 
Proceeds from subordinated interest —  438 
Other, net (25) (138)
    Cash from continuing operations (1,991) (5,684)
    Cash from discontinued operations (129) 350 
    Cash used in investing activities (2,120) (5,334)
Financing activities
Net increase in short-term borrowings (504) 1,241 
Proceeds from short-term borrowings greater than three months 71  1,162 
Payments of short-term borrowings greater than three months (71) (1,165)
Proceeds from long-term debt —  2,975 
Payments of long-term debt (308) (522)
Dividends paid (1,210) (1,223)
Purchases of common stock (500) (500)
Other, net 100  80 
    Cash provided by (used in) financing activities (2,422) 2,048 
Effect of exchange rate changes on cash and equivalents 6  (186)
Decrease in cash and equivalents (961) (550)
Beginning cash and equivalents 3,315  2,354 
Ending cash and equivalents $ 2,354  1,804 
Changes in operating working capital
Receivables $ (18) (143)
Inventories (11) (334)
Other current assets (91) (56)
Accounts payable 107  147 
Accrued expenses 180  74 
Total changes in operating working capital $ 167  (312)






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Supplemental Business Segment Information
EMERSON ELECTRIC CO. & SUBSIDIARIES

Years ended September 30 (Dollars in millions; unaudited)
  Sales Earnings (Loss)
  2021  2022  2021  2022 
Measurement & Analytical $ 3,078  3,215  $ 684  785 
Final Control 3,488  3,607  432  592 
Discrete Automation 2,474  2,612  457  542 
Safety & Productivity 1,340  1,402  256  250 
Intelligent Devices 10,380  10,836  1,829  2,169 
AspenTech 319  656  (7) 12 
Control Systems & Software 2,321  2,398  382  437 
Software and Control 2,640  3,054  375  449 
Corporate items:
Stock compensation
 (197) (125)
Unallocated pension and postretirement costs 94  99 
Corporate and other (184) (419)
Gain on subordinated interest —  453 
Eliminations/Interest (88) (86) (155) (194)
     Total $ 12,932  13,804  $ 1,762  2,432 

Eliminations at consolidated net sales reflect the impact of intercompany sales between the two business groups.







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Supplemental Business Segment Information
EMERSON ELECTRIC CO. & SUBSIDIARIES

Years ended September 30 (Dollars in millions; unaudited)

INTELLIGENT DEVICES
2021 2022 Change
Sales:
Measurement & Analytical $ 3,078  3,215  4  %
Final Control 3,488  3,607  3  %
Discrete Automation 2,474  2,612  6  %
Safety & Productivity 1,340  1,402  5  %
     Total $ 10,380  10,836  4  %
Earnings:
Measurement & Analytical $ 684  785  15  %
Final Control 432  592  37  %
Discrete Automation 457  542  18  %
Safety & Productivity 256  250  (2) %
     Total $ 1,829  2,169  19  %
     Margin 17.6  % 20.0  % 2.4 pts
Restructuring and related costs:
Measurement & Analytical $ 58  3 
Final Control 66  75 
Discrete Automation 11  — 
Safety & Productivity 4  10 
     Total $ 139  88 
Amortization of intangibles:
Measurement & Analytical $ 25  21 
Final Control 107  94 
Discrete Automation 34  30 
Safety & Productivity 28  26 
     Total $ 194  171 
Adjusted EBITA $ 2,162  2,428  12  %
Adjusted EBITA Margin 20.8  % 22.4  % 1.6 pts


















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SOFTWARE AND CONTROL
2021 2022 Change
Sales:
AspenTech $ 319  656  106  %
Control Systems & Software 2,321  2,398  3  %
     Total $ 2,640  3,054  16  %
Earnings:
AspenTech $ (7) 12  269  %
Control Systems & Software 382  437  14  %
     Total $ 375  449  20  %
     Margin 14.2  % 14.7  % 0.5 pts
Restructuring and related costs:
AspenTech $ 2  — 
Control Systems & Software 11  11 
     Total $ 13  11 
Amortization of intangibles:
AspenTech $ 89  237 
Control Systems & Software 20  22 
Total $ 109  259 
Adjusted EBITA $ 497  719  45  %
Adjusted EBITA Margin 18.8  % 23.5  % 4.7 pts








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