Document
false0000032604Common Stock of $0.50 par value per shareEMR 0000032604 2020-06-17 2020-06-17 0000032604 exch:XCHI emr:CommonStockof0.50parvaluepershareMember 2020-06-17 2020-06-17 0000032604 exch:XNYS emr:A2.000Notesdue2029Member 2020-06-17 2020-06-17 0000032604 exch:XNYS emr:A1.250Notesdue2025Member 2020-06-17 2020-06-17 0000032604 exch:XNYS emr:CommonStockof0.50parvaluepershareMember 2020-06-17 2020-06-17 0000032604 exch:XNYS emr:A0.375Notesdue2024Member 2020-06-17 2020-06-17
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event
reported): June 17, 2020
Emerson Electric Co.
-------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Missouri
1-278
43-0259330
---------------------------------
(State or Other Jurisdiction of Incorporation)
-------------------
(Commission
---------------------------
(I.R.S. Employer Identification Number)
 
File Number)
 
8000 West Florissant Avenue
 
 
St. Louis,
Missouri
 
63136
------------------------------------------------
(Address of Principal Executive Offices)
 
------------------
(Zip Code)
Registrant’s telephone number, including area code:
(314) 553-2000
------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 Trading 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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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.    



Item 7.01 Regulation FD Disclosure
 
The following information is furnished pursuant to Regulation FD.
 
Emerson Three-Month Orders, Including Foreign Currency Translation
(Percentage change versus prior year; trailing three-month averages, excluding acquisitions and divestitures, including currency translation)

 
 
 
Mar '20
 
Apr '20
 
May '20
Automation Solutions
 
(5) to 0
 
(10)
 
(15)
Commercial & Residential Solutions
 
(10) to (5)
 
(20) to (15)
 
(25) to (20)
Total Emerson
 
(5) to 0
 
(15) to (10)
 
(20) to (15)


Orders Comments

Total Emerson trailing three-month orders were down 17 percent with underlying orders down 15 percent, excluding 2 percent of unfavorable currency impact. 
 
Automation Solutions orders were down 15 percent and were down 13 percent on an underlying basis excluding unfavorable currency of 2 percent.

Commercial & Residential Solutions orders were down 21 percent and were down 20 percent on an underlying basis excluding unfavorable currency of 1 percent. 

As expected, trailing three-month orders across both business platforms reflected a continued challenging demand environment in May due to the COVID-19 pandemic and oil market volatility. Further details are furnished in the short slide presentation as Exhibit 99.1.
 

Upcoming Investor Events 

On Tuesday, August 4, 2020, Emerson will report its third quarter 2020 results prior to market open. Emerson senior management will discuss the results during an investor conference call that same day, likely beginning at 3:00 p.m. Eastern Time, 2:00 p.m. Central Time. Participants can access a live webcast available at www.emerson.com/financial at the time of the call. A replay of the call will remain available for 90 days. Additionally, conference call slides will be posted in advance of the call on the website.
 

Forward-Looking and Cautionary Statements

Statements in this Current Report on Form 8-K and furnished in Exhibit 99.1 that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impact of the COVID-19 pandemic as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. Underlying orders discussed herein exclude the impact of currency translation.




Item 9.01 Financial Statements and Exhibits
 
(d) Exhibits.
 
Exhibit Number 
 
Description of Exhibits
 
 
 
 
104
 
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.





SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
EMERSON ELECTRIC CO.
(Registrant)
 
 
 
Date:
June 17, 2020
By:
/s/ John A. Sperino
 
 
 
John A. Sperino
Vice President and
Assistant Secretary

  

mayunderlyingordersbywor
Exhibit 99.1 Emerson Orders Update June 17, 2020 Forward-Looking and Cautionary Statements in these slides that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impact of the COVID-19 pandemic as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. Underlying orders discussed herein exclude the impact of currency translation. 1


 
Emerson Underlying Order Trends Trailing 3-Month Average vs. Prior Year 20% 2016 2017 2018 2019 2020 15% 10% Automation Solutions 5% Emerson 0% Commercial & (5%) Residential Solutions 2H Expectation (10%) Trailing 3M Underlying % Chg. Mar Apr May Automation Solutions ~(1%) ~(7%) ~(13%) (20%)- (15%) Commercial & Resi. ~(5%) ~(15%) ~(20%) (10%) Emerson ~(3%) ~(10%) ~(15%) (20%) Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Oct-15 Apr-16 Oct-16 Apr-17 Jun-18 Jun-19 Jun-20 Jun-16 Jun-17 Feb-18 Feb-19 Feb-20 Feb-16 Feb-17 Aug-17 Dec-17 Aug-18 Dec-18 Aug-19 Dec-19 Aug-20 Dec-15 Aug-16 Dec-16 Percentage change versus prior year; underlying trailing three-month averages, excluding acquisitions, divestitures and currency translation Orders data includes the Valves & Controls acquisition results in all periods presented, including on a pro forma basis for periods prior to the acquisition close April 28, 2017. 2


 
Emerson Automation Solutions Trailing 3-Month Underlying Orders: Down ~13% North America Europe Mar Apr May T3M Mar Apr May T3M ~(5%) ~(30%) ~(30%) ~(20%) ~(5%) ~(20%) ~(10%) ~(10%) • Oil & gas production curtailments impacting spend • Early signs of stabilization • Overall COVID-19 declines partially offset by favorable • Steady chemical investments in northern and central EU, and some demand in life sciences, medical and food & beverage LNG and nuclear project demand in southern EU • Increase in power maintenance outages supporting KOB3 • Success with competitive displacement wins while most hydrocarbon outages delayed to fall season • Renewable biomass investments accelerating Middle East & Africa Mar Apr May T3M ~40% ~(20%) ~(15%) ~5% • Broad oil & gas slowdown in Kuwait, Iraq and Oman • Hydrocarbon value chain projects continue to move forward in Saudi Arabia and UAE Asia Pacific Latin America Mar Apr May T3M Mar Apr May T3M ~5% ~(10%) ~(5%) ~(5%) ~10% ~(25%) ~(30%) ~(15%) • China T3M orders down ~5% • Oil & gas and automotive contraction across region • Broad COVID-19 business closures • Recent chemical momentum in China, India and Singapore • Challenging YoY comparisons in Mexico oil & gas • Labor shortages drive workforce efficiency improvements and remote segment services demand • Modest growth in Chile metals & mining and Brazil • KOB3 Orders stable with strength in Specialty Chemical midstream sectors Early Signs of Stabilization in Most World Areas Continues to Support Q3 Orders Trough -- Closely Watching North America for Trough 33


 
Emerson Commercial & Residential Solutions Trailing 3-Month Underlying Orders: Down ~20% North America Europe Mar Apr May T3M Mar Apr May T3M ~flat ~(40%) ~(20%) ~(20%) ~5% ~(25%) ~(25%) ~(15%) • Commercial construction and cold chain demand remain • Commercial HVAC and professional tools remain dampened due to COVID-19 weak • Professional tools demand stable, but at low level • Residential heat pump market remains steady • Home improvement activity remains steady despite COVID-19 downturn • Slow early cooling season in residential HVAC Middle East & Africa Mar Apr May T3M ~10% ~(40%) ~(45%) ~(20%) • COVID-19 economic recovery and reopening delays negatively impact orders momentum • Availability of labor for projects remains a challenge Latin America Asia Pacific Mar Apr May T3M Mar Apr May T3M ~10% ~(55%) ~(35%) ~(30%) ~(15%) ~(15%) ~(30%) ~(20%) • COVID-19 case growth in Brazil and Peru heavily • China T3M orders down ~10%, with stimulus expected to bolster impacting demand near term demand • Commercial AC showing early signs of stabilization • India slow COVID-19 reopening after prolonged lockdown Sequential Order Activity Showing Early Signs of Stabilizing in Most World Areas -- Overall, Home Improvement Is Holding While Commercial Markets Remain Weak Emerson Confidential 44


 
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Jun. 17, 2020
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Trading Symbol  EMR
Security Exchange Name NYSE
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Title of 12(b) Security Common Stock of $0.50 par value per share
Trading Symbol EMR
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