Emerson Electric (EMR) 8-K Results of Operations and Financial Condition

Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES

Consolidated Operating Results

Dollars in millions, except per share amounts

	Years ended September 30
	2014			2015	2016
Net sales	$	17,733		16,249	14,522
Costs and expenses:
Cost of sales	9,971			9,241	8,260
Selling, general and administrative expenses	4,164			3,735	3,464
Gains on divestitures of businesses	—			1,039	—
Other deductions, net	211			330	294
Interest expense, net	196			175	188
Earnings from continuing operations before income taxes	3,191			3,807	2,316
Income taxes	953			1,267	697
Earnings from continuing operations	2,238			2,540	1,619
Discontinued operations, net of tax	(54		)	193	45
Net earnings	2,184			2,733	1,664
Less: Noncontrolling interests in earnings of subsidiaries	37			23	29
Net earnings common stockholders	$	2,147		2,710	1,635
Earnings common stockholders:
Earnings from continuing operations	$	2,201		2,517	1,590
Discontinued operations, net of tax	(54		)	193	45
Net earnings common stockholders	$	2,147		2,710	1,635
Diluted earnings per share common stockholders:
Earnings from continuing operations	$	3.11		3.71	2.45
Discontinued operations	(0.08		)	0.28	0.07
Diluted earnings per common share	$	3.03		3.99	2.52

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Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES

Supplemental Business Segment Information

Dollars in millions; unaudited

	Years ended September 30
Sales	2014			2015		2016
Automation Solutions	$	10,937		10,153		8,977
Climate Technologies	4,104			4,006		3,944
Tools & Home Products	1,607			1,625		1,611
Commercial & Residential Solutions	5,711			5,631		5,555
Divested businesses (a)	1,099			477		—
Sales eliminations	(14		)	(12	)	(10	)
Total	$	17,733		16,249		14,522

Earnings	2014			2015		2016
Automation Solutions	$	2,334		1,846		1,456
Climate Technologies	874			835		902
Tools & Home Products	385			364		384
Commercial & Residential Solutions	1,259			1,199		1,286
Divested businesses (a)	117			58		—
Differences in accounting methods	197			174		189
Corporate and other (b)	(520		)	705		(427	)
Interest	(196		)	(175	)	(188	)
Pretax earnings	$	3,191		3,807		2,316
(a) Divested businesses include sales and earnings related to the power transmission solutions and commercial storage businesses, which were reported in the former Industrial Automation and Commercial & Residential Solutions segments, respectively, and the embedded computing and power and connectivity solutions businesses, which were reported in the former Network Power segment.
(b) Corporate and other in 2015 includes pretax gains on divestitures of $1,039 ($611 after-tax, $0.90 per share).

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Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES

Consolidated Operating Results and Supplemental Business Segment Information

Dollars in millions, except per share amounts; unaudited

	Fiscal Year 2016
	1st Quarter		2nd Quarter	3rd Quarter	4th Quarter
Net sales	$	3,337	3,579	3,674	3,932
Costs and expenses:
Cost of sales	1,923		2,037	2,081	2,219
Selling, general and administrative expenses	879		878	852	855
Other deductions, net	54		66	39	135
Interest expense, net	47		46	46	49
Earnings from continuing operations before income taxes	434		552	656	674
Income taxes	127		177	205	188
Earnings from continuing operations	307		375	451	486
Discontinued operations, net of tax	46		2	38	(41	)
Net earnings	353		377	489	445
Less: Noncontrolling interests in earnings of subsidiaries	4		8	10	7
Net earnings common stockholders	$	349	369	479	438
Earnings common stockholders:
Earnings from continuing operations	$	303	367	441	479
Discontinued operations, net of tax	46		2	38	(41	)
Net earnings common stockholders	$	349	369	479	438
Diluted earnings per share common stockholders:
Earnings from continuing operations	$	0.46	0.57	0.68	0.74
Discontinued operations	0.07		—	0.06	(0.06	)
Diluted earnings per common share	$	0.53	0.57	0.74	0.68

Sales	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
Automation Solutions	$	2,162		2,194		2,176		2,445
Climate Technologies	786			993		1,101		1,064
Tools & Home Products	392			394		400		425
Commercial & Residential Solutions	1,178			1,387		1,501		1,489
Sales eliminations	(3		)	(2	)	(3	)	(2	)
Total	$	3,337		3,579		3,674		3,932

Earnings	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
Automation Solutions	$	341		342		354		419
Climate Technologies	133			226		287		256
Tools & Home Products	85			92		97		110
Commercial & Residential Solutions	218			318		384		366
Differences in accounting methods	44			47		47		51
Corporate and other	(122		)	(109	)	(83	)	(113	)
Interest	(47		)	(46	)	(46	)	(49	)
Pretax earnings	$	434		552		656		674

3

Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES

Consolidated Operating Results and Supplemental Business Segment Information

Dollars in millions, except per share amounts; unaudited

	Fiscal Year 2015
	1st Quarter		2nd Quarter	3rd Quarter	4th Quarter
Net sales	$	4,026	3,934	4,085	4,204
Costs and expenses:
Cost of sales	2,286		2,248	2,326	2,381
Selling, general and administrative expenses	1,019		948	922	846
Gains on divestitures of businesses	—		932	—	107
Other deductions, net	29		81	67	153
Interest expense, net	46		42	43	44
Earnings from continuing operations before income taxes	646		1,547	727	887
Income taxes	191		603	216	257
Earnings from continuing operations	455		944	511	630
Discontinued operations, net of tax	73		37	62	21
Net earnings	528		981	573	651
Less: Noncontrolling interests in earnings of subsidiaries	3		8	9	3
Net earnings common stockholders	$	525	973	564	648
Earnings common stockholders:
Earnings from continuing operations	$	452	936	502	627
Discontinued operations, net of tax	73		37	62	21
Net earnings common stockholders	$	525	973	564	648
Diluted earnings per share common stockholders:
Earnings from continuing operations	$	0.65	1.36	0.75	0.95
Discontinued operations	0.10		0.06	0.09	0.03
Diluted earnings per common share	$	0.75	1.42	0.84	0.98

Sales	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
Automation Solutions	$	2,517		2,447		2,487		2,702
Climate Technologies	898			981		1,124		1,003
Tools & Home Products	405			391		405		424
Commercial & Residential Solutions	1,303			1,372		1,529		1,427
Divested businesses	209			118		72		78
Sales eliminations	(3		)	(3	)	(3	)	(3	)
Total	$	4,026		3,934		4,085		4,204

Earnings	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
Automation Solutions	$	483		386		462		515
Climate Technologies	153			205		266		211
Tools & Home Products	94			83		89		98
Commercial & Residential Solutions	247			288		355		309
Divested businesses	24			12		9		13
Differences in accounting methods	45			41		43		45
Corporate and other	(107		)	862		(99	)	49
Interest	(46		)	(42	)	(43	)	(44	)
Pretax earnings	$	646		1,547		727		887

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Exhibit 99.1

EMERSON ELECTRIC CO. & SUBSIDIARIES

Consolidated Operating Results and Supplemental Business Segment Information

Dollars in millions, except per share amounts; unaudited

	Fiscal Year 2014
	1st Quarter		2nd Quarter	3rd Quarter	4th Quarter
Net sales	$	3,984	4,200	4,603	4,946
Costs and expenses:
Cost of sales	2,314		2,361	2,567	2,729
Selling, general and administrative expenses	1,063		1,014	1,027	1,060
Other deductions, net	48		91	49	23
Interest expense, net	55		46	48	47
Earnings from continuing operations before income taxes	504		688	912	1,087
Income taxes	124		224	287	318
Earnings from continuing operations	380		464	625	769
Discontinued operations, net of tax	97		90	113	(354	)
Net earnings	477		554	738	415
Less: Noncontrolling interests in earnings of subsidiaries	15		7	10	5
Net earnings common stockholders	$	462	547	728	410
Earnings common stockholders:
Earnings from continuing operations	$	365	457	615	764
Discontinued operations, net of tax	97		90	113	(354	)
Net earnings common stockholders	$	462	547	728	410
Diluted earnings per share common stockholders:
Earnings from continuing operations	$	0.51	0.65	0.87	1.08
Discontinued operations	0.14		0.12	0.16	(0.50	)
Diluted earnings per common share	$	0.65	0.77	1.03	0.58

Sales	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
Automation Solutions	$	2,452		2,532		2,758		3,195
Climate Technologies	785			1,040		1,190		1,089
Tools & Home Products	389			387		411		420
Commercial & Residential Solutions	1,174			1,427		1,601		1,509
Divested businesses	361			244		247		247
Sales eliminations	(3		)	(3	)	(3	)	(5	)
Total	$	3,984		4,200		4,603		4,946

Earnings	1st Quarter			2nd Quarter		3rd Quarter		4th Quarter
Automation Solutions	$	467		481		577		809
Climate Technologies	126			222		294		232
Tools & Home Products	90			93		99		103
Commercial & Residential Solutions	216			315		393		335
Divested businesses	10			33		33		41
Differences in accounting methods	44			47		50		56
Corporate and other	(178		)	(142	)	(93	)	(107	)
Interest	(55		)	(46	)	(48	)	(47	)
Pretax earnings	$	504		688		912		1,087

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