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Missouri
(State or other jurisdiction of
incorporation or organization)
|
![]() |
43-0259330
(I.R.S. Employer
Identification No.)
|
8000 W. Florissant Ave.
P.O. Box 4100
St. Louis, Missouri
(Address of principal executive offices)
|
63136
(Zip Code)
|
Large accelerated filer
ý
|
Accelerated filer
¨
|
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
¨
|
|
Emerging growth company
¨
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
|||||||||
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
Net sales
|
$
|
3,574
|
|
|
4,248
|
|
|
6,790
|
|
|
8,064
|
|
|
|
|
|
|
|
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|||||
Cost of sales
|
2,017
|
|
|
2,423
|
|
|
3,868
|
|
|
4,618
|
|
|
Selling, general and administrative expenses
|
868
|
|
|
1,032
|
|
|
1,690
|
|
|
2,024
|
|
|
Other deductions, net
|
83
|
|
|
99
|
|
|
116
|
|
|
187
|
|
|
Interest expense (net of interest income of $9, $14, $15 and $25, respectively)
|
41
|
|
|
36
|
|
|
87
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings from continuing operations before income taxes
|
565
|
|
|
658
|
|
|
1,029
|
|
|
1,161
|
|
|
|
|
|
|
|
|
|
|
|||||
Income taxes
|
181
|
|
|
169
|
|
|
275
|
|
|
278
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings from continuing operations
|
384
|
|
|
489
|
|
|
754
|
|
|
883
|
|
|
|
|
|
|
|
|
|
|
|||||
Discontinued operations, net of tax
|
(84
|
)
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings
|
300
|
|
|
489
|
|
|
615
|
|
|
883
|
|
|
|
|
|
|
|
|
|
|
|||||
Less: Noncontrolling interests in earnings of subsidiaries
|
8
|
|
|
7
|
|
|
14
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings common stockholders
|
$
|
292
|
|
|
482
|
|
|
601
|
|
|
874
|
|
|
|
|
|
|
|
|
|
|||||
Earnings common stockholders:
|
|
|
|
|
|
|
|
|||||
Earnings from continuing operations
|
$
|
376
|
|
|
482
|
|
|
740
|
|
|
874
|
|
Discontinued operations, net of tax
|
(84
|
)
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
|
Net earnings common stockholders
|
$
|
292
|
|
|
482
|
|
|
601
|
|
|
874
|
|
|
|
|
|
|
|
|
|
|||||
Basic earnings per share common stockholders:
|
|
|
|
|
|
|
|
|||||
Earnings from continuing operations
|
$
|
0.58
|
|
|
0.76
|
|
|
1.14
|
|
|
1.37
|
|
Discontinued operations
|
(0.13
|
)
|
|
—
|
|
|
(0.21
|
)
|
|
—
|
|
|
Basic earnings per common share
|
$
|
0.45
|
|
|
0.76
|
|
|
0.93
|
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|||||
Diluted earnings per share common stockholders:
|
|
|
|
|
|
|
|
|||||
Earnings from continuing operations
|
$
|
0.58
|
|
|
0.76
|
|
|
1.14
|
|
|
1.37
|
|
Discontinued operations
|
(0.13
|
)
|
|
—
|
|
|
(0.21
|
)
|
|
—
|
|
|
Diluted earnings per common share
|
$
|
0.45
|
|
|
0.76
|
|
|
0.93
|
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|||||
Cash dividends per common share
|
$
|
0.48
|
|
|
0.485
|
|
|
0.96
|
|
|
0.97
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
|||||||||||||
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
Net earnings
|
|
$
|
300
|
|
|
|
489
|
|
|
|
615
|
|
|
|
883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency translation
|
|
259
|
|
|
|
148
|
|
|
|
156
|
|
|
|
155
|
|
|
Pension and postretirement
|
|
65
|
|
|
|
22
|
|
|
|
120
|
|
|
|
45
|
|
|
Cash flow hedges
|
|
17
|
|
|
|
(5
|
)
|
|
|
32
|
|
|
|
(8
|
)
|
|
Total other comprehensive income
|
|
341
|
|
|
|
165
|
|
|
|
308
|
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Comprehensive income
|
|
641
|
|
|
|
654
|
|
|
|
923
|
|
|
|
1,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Less: Noncontrolling interests in comprehensive
income of subsidiaries
|
|
9
|
|
|
|
7
|
|
|
|
13
|
|
|
|
9
|
|
|
Comprehensive income common stockholders
|
|
$
|
632
|
|
|
|
647
|
|
|
|
910
|
|
|
|
1,066
|
|
|
Sept 30, 2017
|
|
Mar 31, 2018
|
|||
ASSETS
|
|
|
|
|||
Current assets
|
|
|
|
|||
Cash and equivalents
|
$
|
3,062
|
|
|
2,444
|
|
Receivables, less allowances of $91 and $97, respectively
|
3,072
|
|
|
3,042
|
|
|
Inventories
|
1,696
|
|
|
1,897
|
|
|
Other current assets
|
422
|
|
|
342
|
|
|
Total current assets
|
8,252
|
|
|
7,725
|
|
|
|
|
|
|
|||
Property, plant and equipment, net
|
3,321
|
|
|
3,299
|
|
|
Other assets
|
|
|
|
|
||
Goodwill
|
5,316
|
|
|
5,821
|
|
|
Other intangible assets
|
1,890
|
|
|
2,203
|
|
|
Other
|
810
|
|
|
737
|
|
|
Total other assets
|
8,016
|
|
|
8,761
|
|
|
Total assets
|
$
|
19,589
|
|
|
19,785
|
|
|
|
|
|
|||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term borrowings and current maturities of long-term debt
|
$
|
862
|
|
|
1,833
|
|
Accounts payable
|
1,776
|
|
|
1,603
|
|
|
Accrued expenses
|
2,342
|
|
|
2,362
|
|
|
Income taxes
|
65
|
|
|
147
|
|
|
Total current liabilities
|
5,045
|
|
|
5,945
|
|
|
|
|
|
|
|||
Long-term debt
|
3,794
|
|
|
3,357
|
|
|
|
|
|
|
|||
Other liabilities
|
1,980
|
|
|
1,946
|
|
|
|
|
|
|
|||
Equity
|
|
|
|
|
|
|
Common stock, $0.50 par value; authorized, 1,200,000,000 shares; issued, 953,354,012 shares; outstanding, 641,691,971 shares and 631,535,208 shares, respectively
|
477
|
|
|
477
|
|
|
Additional paid-in-capital
|
297
|
|
|
323
|
|
|
Retained earnings
|
21,995
|
|
|
22,254
|
|
|
Accumulated other comprehensive income (loss)
|
(1,019
|
)
|
|
(827
|
)
|
|
Cost of common stock in treasury, 311,662,041 shares and 321,818,804 shares, respectively
|
(13,032
|
)
|
|
(13,735
|
)
|
|
Common stockholders’ equity
|
8,718
|
|
|
8,492
|
|
|
Noncontrolling interests in subsidiaries
|
52
|
|
|
45
|
|
|
Total equity
|
8,770
|
|
|
8,537
|
|
|
Total liabilities and equity
|
$
|
19,589
|
|
|
19,785
|
|
|
|
Six Months Ended
|
|||||
|
|
March 31,
|
|||||
|
|
2017
|
|
|
2018
|
|
|
Operating activities
|
|
|
|
|
|||
Net earnings
|
|
$
|
615
|
|
|
883
|
|
Loss from discontinued operations, net of tax
|
|
139
|
|
|
—
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|||
Depreciation and amortization
|
|
283
|
|
|
378
|
|
|
Changes in operating working capital
|
|
(126
|
)
|
|
(363
|
)
|
|
Other, net
|
|
100
|
|
|
46
|
|
|
Cash from continuing operations
|
|
1,011
|
|
|
944
|
|
|
Cash from discontinued operations
|
|
(601
|
)
|
|
—
|
|
|
Cash provided by operating activities
|
|
410
|
|
|
944
|
|
|
|
|
|
|
|
|||
Investing activities
|
|
|
|
|
|||
Capital expenditures
|
|
(194
|
)
|
|
(194
|
)
|
|
Purchases of businesses, net of cash and equivalents acquired
|
|
(16
|
)
|
|
(770
|
)
|
|
Divestitures of businesses
|
|
—
|
|
|
221
|
|
|
Other, net
|
|
(50
|
)
|
|
(42
|
)
|
|
Cash from continuing operations
|
|
(260
|
)
|
|
(785
|
)
|
|
Cash from discontinued operations
|
|
5,051
|
|
|
—
|
|
|
Cash provided by (used in) investing activities
|
|
4,791
|
|
|
(785
|
)
|
|
|
|
|
|
|
|||
Financing activities
|
|
|
|
|
|||
Net increase (decrease) in short-term borrowings
|
|
(2,228
|
)
|
|
782
|
|
|
Payments of short-term borrowings greater than three months
|
|
(90
|
)
|
|
—
|
|
|
Payments of long-term debt
|
|
(252
|
)
|
|
(251
|
)
|
|
Dividends paid
|
|
(621
|
)
|
|
(618
|
)
|
|
Purchases of common stock
|
|
(120
|
)
|
|
(750
|
)
|
|
Other, net
|
|
29
|
|
|
(6
|
)
|
|
Cash used in financing activities
|
|
(3,282
|
)
|
|
(843
|
)
|
|
|
|
|
|
|
|||
Effect of exchange rate changes on cash and equivalents
|
|
(62
|
)
|
|
66
|
|
|
Increase (Decrease) in cash and equivalents
|
|
1,857
|
|
|
(618
|
)
|
|
Beginning cash and equivalents
|
|
3,182
|
|
|
3,062
|
|
|
Ending cash and equivalents
|
|
$
|
5,039
|
|
|
2,444
|
|
|
|
|
|
|
|||
Changes in operating working capital
|
|
|
|
|
|||
Receivables
|
|
$
|
190
|
|
|
98
|
|
Inventories
|
|
(137
|
)
|
|
(172
|
)
|
|
Other current assets
|
|
11
|
|
|
(30
|
)
|
|
Accounts payable
|
|
(100
|
)
|
|
(161
|
)
|
|
Accrued expenses
|
|
(98
|
)
|
|
(149
|
)
|
|
Income taxes
|
|
8
|
|
|
51
|
|
|
Total changes in operating working capital
|
|
$
|
(126
|
)
|
|
(363
|
)
|
1.
|
In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair presentation of operating results for the interim periods presented. Adjustments consist of normal and recurring accruals. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all disclosures required for annual financial statements presented in conformity with U.S. generally accepted accounting principles (GAAP). For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30,
2017
.
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
||||||||
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||
Basic shares outstanding
|
643.6
|
|
|
632.6
|
|
|
643.2
|
|
|
635.4
|
|
Dilutive shares
|
1.2
|
|
|
3.4
|
|
|
1.3
|
|
|
2.9
|
|
Diluted shares outstanding
|
644.8
|
|
|
636.0
|
|
|
644.5
|
|
|
638.3
|
|
|
Sept 30, 2017
|
|
Mar 31, 2018
|
|||||
Inventories
|
|
|
|
|
|
|||
Finished products
|
|
$
|
560
|
|
|
|
663
|
|
Raw materials and work in process
|
|
1,136
|
|
|
|
1,234
|
|
|
Total
|
|
$
|
1,696
|
|
|
|
1,897
|
|
|
Sept 30, 2017
|
|
Mar 31, 2018
|
|||||
Property, plant and equipment, net
|
|
|
|
|||||
Property, plant and equipment, at cost
|
|
$
|
7,873
|
|
|
|
8,065
|
|
Less: Accumulated depreciation
|
|
4,552
|
|
|
|
4,766
|
|
|
Total
|
|
$
|
3,321
|
|
|
|
3,299
|
|
|
Sept 30, 2017
|
|
Mar 31, 2018
|
|||||
Goodwill by business segment
|
|
|
|
|
|
|||
Automation Solutions
|
|
$
|
4,704
|
|
|
|
5,067
|
|
|
|
|
|
|
|
|||
Climate Technologies
|
|
555
|
|
|
|
696
|
|
|
Tools & Home Products
|
|
57
|
|
|
|
58
|
|
|
Commercial & Residential Solutions
|
|
612
|
|
|
|
754
|
|
|
|
|
|
|
|
|
|||
Total
|
|
$
|
5,316
|
|
|
|
5,821
|
|
|
Sept 30, 2017
|
|
Mar 31, 2018
|
|||||
Accrued expenses include the following
|
|
|
|
|
|
|||
Employee compensation
|
|
$
|
531
|
|
|
|
606
|
|
Customer advanced payments
|
|
$
|
505
|
|
|
|
533
|
|
Product warranty
|
|
$
|
120
|
|
|
|
130
|
|
|
Sept 30, 2017
|
|
Mar 31, 2018
|
|||||
Other liabilities
|
|
|
|
|
|
|||
Pension and postretirement liabilities
|
|
$
|
664
|
|
|
|
661
|
|
Deferred income taxes
|
|
425
|
|
|
|
262
|
|
|
Asbestos litigation
|
|
340
|
|
|
|
333
|
|
|
Other
|
|
551
|
|
|
|
690
|
|
|
Total
|
|
$
|
1,980
|
|
|
|
1,946
|
|
4.
|
Following is a discussion regarding the Company’s use of financial instruments:
|
|
|
|
|
Into Earnings
|
|
Into OCI
|
|||||||||||||||||||||
|
|
|
|
2nd Quarter
|
|
Six Months
|
|
2nd Quarter
|
|
Six Months
|
|||||||||||||||||
Gains (Losses)
|
|
Location
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
Commodity
|
|
Cost of sales
|
|
$
|
4
|
|
|
6
|
|
|
2
|
|
|
11
|
|
|
5
|
|
|
(9
|
)
|
|
15
|
|
|
4
|
|
Foreign currency
|
|
Sales, cost of sales
|
|
(7
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
20
|
|
|
8
|
|
|
22
|
|
|
(4
|
)
|
|
Foreign currency
|
|
Other deductions, net
|
|
(6
|
)
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|||||
Total
|
|
|
|
$
|
(9
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|
(1
|
)
|
|
25
|
|
|
(1
|
)
|
|
37
|
|
|
—
|
|
|
September 30, 2017
|
|
March 31, 2018
|
||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||
Foreign Currency
|
|
$
|
26
|
|
|
18
|
|
|
22
|
|
|
13
|
|
Commodity
|
|
$
|
12
|
|
|
—
|
|
|
6
|
|
|
2
|
|
5.
|
The change in equity for the first
six months
of
2018
is shown below:
|
|
Common
Stockholders'
Equity
|
|
Noncontrolling
Interests in Subsidiaries
|
|
Total Equity
|
|||||||
Balance at September 30, 2017
|
|
$
|
8,718
|
|
|
|
52
|
|
|
|
8,770
|
|
Net earnings
|
|
874
|
|
|
|
9
|
|
|
|
883
|
|
|
Other comprehensive income (loss)
|
|
192
|
|
|
|
—
|
|
|
|
192
|
|
|
Cash dividends
|
|
(618
|
)
|
|
|
(16
|
)
|
|
|
(634
|
)
|
|
Purchases of treasury stock, net of issuances
|
|
(677
|
)
|
|
|
—
|
|
|
|
(677
|
)
|
|
Adoption of accounting standard update
|
|
3
|
|
|
|
—
|
|
|
|
3
|
|
|
Balance at March 31, 2018
|
|
$
|
8,492
|
|
|
|
45
|
|
|
|
8,537
|
|
6.
|
Activity in Accumulated other comprehensive income (loss) for the
three and six months ended
March 31, 2018
and
2017
is shown below:
|
|
Three Months Ended March 31,
|
|
Six Months Ended
March 31, |
|||||||||||||
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
Foreign currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
|
$
|
(913
|
)
|
|
|
(362
|
)
|
|
|
(812
|
)
|
|
|
(369
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
139
|
|
|
|
148
|
|
|
|
(228
|
)
|
|
|
172
|
|
|
Reclassified to gain/loss on sale of businesses
|
|
119
|
|
|
|
—
|
|
|
|
385
|
|
|
|
(17
|
)
|
|
Ending balance
|
|
(655
|
)
|
|
|
(214
|
)
|
|
|
(655
|
)
|
|
|
(214
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pension and postretirement
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
|
(1,107
|
)
|
|
|
(639
|
)
|
|
|
(1,162
|
)
|
|
|
(662
|
)
|
|
Amortization of deferred actuarial losses into earnings
|
|
35
|
|
|
|
22
|
|
|
|
70
|
|
|
|
45
|
|
|
Reclassified to gain/loss on sale of businesses
|
|
30
|
|
|
|
—
|
|
|
|
50
|
|
|
|
—
|
|
|
Ending balance
|
|
(1,042
|
)
|
|
|
(617
|
)
|
|
|
(1,042
|
)
|
|
|
(617
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
|
(10
|
)
|
|
|
9
|
|
|
|
(25
|
)
|
|
|
12
|
|
|
Deferral of gains (losses) arising during the period
|
|
15
|
|
|
|
(1
|
)
|
|
|
23
|
|
|
|
—
|
|
|
Reclassification of realized (gains) losses to sales and cost of sales
|
|
2
|
|
|
|
(4
|
)
|
|
|
9
|
|
|
|
(8
|
)
|
|
Ending balance
|
|
7
|
|
|
|
4
|
|
|
|
7
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accumulated other comprehensive income (loss)
|
|
$
|
(1,690
|
)
|
|
|
(827
|
)
|
|
|
(1,690
|
)
|
|
|
(827
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Activity above is shown net of income taxes for the three and six months ended March 31, 2018 and 2017, respectively, as follows: amortization of pension and postretirement deferred actuarial losses: $(8), $(18), $(16), and $(36); pension and postretirement divestiture: $- , $(15), $-, and $(22); deferral of cash flow hedging gains (losses): $-, $(10), $-, and $(14); reclassification of realized cash flow hedging (gains) losses: $2, $(1), $3 and $(6).
|
7.
|
Total periodic pension and postretirement expense is summarized below:
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
|||||||||||||
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
2018
|
||||
Service cost
|
|
$
|
21
|
|
|
|
19
|
|
|
|
42
|
|
|
|
38
|
|
Interest cost
|
|
42
|
|
|
|
47
|
|
|
|
84
|
|
|
|
93
|
|
|
Expected return on plan assets
|
|
(86
|
)
|
|
|
(88
|
)
|
|
|
(172
|
)
|
|
|
(175
|
)
|
|
Net amortization
|
|
53
|
|
|
|
30
|
|
|
|
106
|
|
|
|
61
|
|
|
Total
|
|
$
|
30
|
|
|
|
8
|
|
|
|
60
|
|
|
|
17
|
|
8.
|
Other deductions, net are summarized below:
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
|||||||||||||
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangibles
|
|
$
|
21
|
|
|
|
51
|
|
|
|
43
|
|
|
|
107
|
|
Restructuring costs
|
|
13
|
|
|
|
9
|
|
|
|
24
|
|
|
|
24
|
|
|
Other
|
|
49
|
|
|
|
39
|
|
|
|
49
|
|
|
|
56
|
|
|
Total
|
|
$
|
83
|
|
|
|
99
|
|
|
|
116
|
|
|
|
187
|
|
9.
|
Restructuring expense reflects costs associated with the Company’s ongoing efforts to improve operational efficiency and deploy assets globally in order to remain competitive on a worldwide basis. The Company expects full year
2018
restructuring expense to be approximately
$65
. The full year expense includes
$24
incurred to date, as well as costs to complete actions initiated before the end of the
second
quarter and actions anticipated to be approved and initiated during the remainder of the year. Costs for the
three and six months ended
March 31, 2018
largely relate to restructuring of the global cost structure consistent with the current level of economic activity, as well as the redeployment of resources for future growth.
|
|
Three Months Ended
March 31, |
|
Six Months Ended
March 31, |
|||||||||||||
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Automation Solutions
|
|
$
|
9
|
|
|
|
7
|
|
|
|
15
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Climate Technologies
|
|
3
|
|
|
|
2
|
|
|
|
7
|
|
|
|
7
|
|
|
Tools & Home Products
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
Commercial & Residential Solutions
|
|
3
|
|
|
|
2
|
|
|
|
8
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Corporate
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
|
$
|
13
|
|
|
|
9
|
|
|
|
24
|
|
|
|
24
|
|
|
Sept 30, 2017
|
|
|
Expense
|
|
|
Utilized/Paid
|
|
|
Mar 31, 2018
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Severance and benefits
|
|
$
|
60
|
|
|
|
15
|
|
|
|
30
|
|
|
|
45
|
|
Lease and other contract terminations
|
|
4
|
|
|
|
2
|
|
|
|
2
|
|
|
|
4
|
|
|
Asset write-downs
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
Vacant facility and other shutdown costs
|
|
1
|
|
|
|
2
|
|
|
|
1
|
|
|
|
2
|
|
|
Start-up and moving costs
|
|
—
|
|
|
|
4
|
|
|
|
4
|
|
|
|
—
|
|
|
Total
|
|
$
|
65
|
|
|
|
24
|
|
|
|
38
|
|
|
|
51
|
|
10.
|
Business Segments
– The Company designs and manufactures products and delivers services that bring technology and engineering together to provide innovative solutions for customers in a wide range of industrial, commercial and consumer markets around the world.
|
•
|
Measurement & Analytical Instrumentation
products measure the physical properties of liquids or gases in a process stream and communicate this information to a process control system or other software applications, and analyze the chemical composition of process fluids and emissions to enhance quality and efficiency, as well as environmental compliance.
|
•
|
Valves, Actuators & Regulators
consists of control, isolation and pressure relief valves which respond to commands from a control system to continuously and precisely modulate the flow of process fluids, smart actuation and control technologies, pressure management products, and industrial and residential regulators that reduce the pressure of fluids moving from high-pressure supply lines into lower pressure systems.
|
•
|
Industrial Solutions
provides fluid power and control mechanisms, electrical distribution equipment, and materials joining and precision cleaning products which are used in a variety of manufacturing operations to provide integrated solutions to customers.
|
•
|
Process Control Systems & Solutions
provides a digital ecosystem that controls plant processes by communicating with and adjusting the "intelligent" plant devices described above to provide precision measurement, control, monitoring, asset optimization, and plant safety and reliability for plants that produce power, or process fluids or other items.
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
|||||||||||||||||||||
|
Sales
|
|
Earnings
|
|
Sales
|
|
Earnings
|
|||||||||||||||||
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Automation Solutions
|
$
|
2,117
|
|
|
2,771
|
|
|
328
|
|
|
436
|
|
|
4,084
|
|
|
5,343
|
|
|
654
|
|
|
822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Climate Technologies
|
1,058
|
|
|
1,128
|
|
|
249
|
|
|
253
|
|
|
1,917
|
|
|
2,050
|
|
|
410
|
|
|
418
|
|
|
Tools & Home Products
|
402
|
|
|
355
|
|
|
96
|
|
|
96
|
|
|
795
|
|
|
685
|
|
|
184
|
|
|
183
|
|
|
Commercial & Residential Solutions
|
1,460
|
|
|
1,483
|
|
|
345
|
|
|
349
|
|
|
2,712
|
|
|
2,735
|
|
|
594
|
|
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Differences in accounting methods
|
|
|
|
|
35
|
|
|
55
|
|
|
|
|
|
|
68
|
|
|
106
|
|
|||||
Corporate and other
|
|
|
|
|
(102
|
)
|
|
(146
|
)
|
|
|
|
|
|
(200
|
)
|
|
(294
|
)
|
|||||
Eliminations/Interest
|
(3
|
)
|
|
(6
|
)
|
|
(41
|
)
|
|
(36
|
)
|
|
(6
|
)
|
|
(14
|
)
|
|
(87
|
)
|
|
(74
|
)
|
|
Total
|
$
|
3,574
|
|
|
4,248
|
|
|
565
|
|
|
658
|
|
|
6,790
|
|
|
8,064
|
|
|
1,029
|
|
|
1,161
|
|
|
Three Months Ended March 31,
|
|
|
Six Months Ended March 31,
|
||||||||||||
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Measurement & Analytical Instrumentation
|
|
$
|
736
|
|
|
|
860
|
|
|
|
1,418
|
|
|
|
1,632
|
|
Valves, Actuators & Regulators
|
|
497
|
|
|
|
926
|
|
|
|
946
|
|
|
|
1,793
|
|
|
Industrial Solutions
|
|
419
|
|
|
|
479
|
|
|
|
786
|
|
|
|
903
|
|
|
Process Control Systems & Solutions
|
|
465
|
|
|
|
506
|
|
|
|
934
|
|
|
|
1,015
|
|
|
Total
|
|
$
|
2,117
|
|
|
|
2,771
|
|
|
|
4,084
|
|
|
|
5,343
|
|
11.
|
On April 18, 2018, the Company entered into an agreement to purchase Textron's tools and test equipment business for $
810
, subject to certain post-closing adjustments. This business, with annual sales of approximately
$470
, is a manufacturer of electrical and utility tools, diagnostics, and test and measurement instruments, and will be reported in the Tools & Home products segment. The transaction is expected to close in the fourth quarter, subject to various regulatory approvals and other customary closing conditions.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||
|
March 31, 2017
|
||||||||
|
|
|
|
|
|
||||
Net sales
|
|
$
|
3,925
|
|
|
|
$
|
7,545
|
|
Net earnings from continuing operations common stockholders
|
|
$
|
368
|
|
|
|
$
|
730
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.57
|
|
|
|
$
|
1.13
|
|
12.
|
Discontinued Operations
– In fiscal 2017, the Company completed the previously announced strategic repositioning actions to streamline its portfolio and drive growth in its core businesses. On November 30, 2016, the Company completed the sale of its network power systems business for
$4 billion
in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment. Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for approximately
$1.2 billion
, subject to post-closing adjustments.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
|
March 31, 2017
|
||||||
Net sales
|
|
$
|
97
|
|
|
$
|
1,037
|
|
Cost of sales
|
|
75
|
|
|
701
|
|
||
SG&A
|
|
21
|
|
|
263
|
|
||
Other (income) deductions, net
|
|
4
|
|
|
(417
|
)
|
||
Earnings (Loss) before income taxes
|
|
(3
|
)
|
|
490
|
|
||
Income taxes
|
|
81
|
|
|
629
|
|
||
Earnings (Loss), net of tax
|
|
$
|
(84
|
)
|
|
$
|
(139
|
)
|
|
|
Six Months Ended
Mar 31, 2017
|
||
|
|
|
||
Cash from operating activities
|
|
$
|
(601
|
)
|
Cash from investing activities
|
|
$
|
5,051
|
|
|
2017
|
|
2018
|
|
Change
|
||||
(dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||||
Net sales
|
$
|
3,574
|
|
|
4,248
|
|
|
19
|
%
|
Gross profit
|
$
|
1,557
|
|
|
1,825
|
|
|
17
|
%
|
Percent of sales
|
43.6
|
%
|
|
43.0
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
SG&A
|
$
|
868
|
|
|
1,032
|
|
|
|
|
Percent of sales
|
24.3
|
%
|
|
24.3
|
%
|
|
|
|
|
Other deductions, net
|
$
|
83
|
|
|
99
|
|
|
|
|
Interest expense, net
|
$
|
41
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings from continuing operations before income taxes
|
$
|
565
|
|
|
658
|
|
|
16
|
%
|
Percent of sales
|
15.8
|
%
|
|
15.5
|
%
|
|
|
|
|
Earnings from continuing operations common stockholders
|
$
|
376
|
|
|
482
|
|
|
28
|
%
|
Net earnings common stockholders
|
$
|
292
|
|
|
482
|
|
|
65
|
%
|
Percent of sales
|
8.2
|
%
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted EPS - Earnings from continuing operations
|
$
|
0.58
|
|
|
0.76
|
|
|
31
|
%
|
Diluted EPS - Net earnings
|
$
|
0.45
|
|
|
0.76
|
|
|
69
|
%
|
Three Months Ended Mar 31
|
2017
|
|
2018
|
|
Change
|
||||
(dollars in millions)
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Sales
|
$
|
2,117
|
|
|
2,771
|
|
|
31
|
%
|
Earnings
|
$
|
328
|
|
|
436
|
|
|
33
|
%
|
Margin
|
15.5
|
%
|
|
15.7
|
%
|
|
|
|
Sales by Major Product Offering
|
|
|
|
|
|
||||
Measurement & Analytical Instrumentation
|
$
|
736
|
|
|
860
|
|
|
17
|
%
|
Valves, Actuators & Regulators
|
497
|
|
|
926
|
|
|
86
|
%
|
|
Industrial Solutions
|
419
|
|
|
479
|
|
|
14
|
%
|
|
Process Control Systems & Solutions
|
465
|
|
|
506
|
|
|
9
|
%
|
|
Total
|
$
|
2,117
|
|
|
2,771
|
|
|
31
|
%
|
Three Months Ended Mar 31
|
2017
|
|
2018
|
|
Change
|
||||
(dollars in millions)
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Sales:
|
|
|
|
|
|
||||
Climate Technologies
|
$
|
1,058
|
|
|
1,128
|
|
|
7
|
%
|
Tools & Home Products
|
402
|
|
|
355
|
|
|
(12
|
)%
|
|
Total
|
$
|
1,460
|
|
|
1,483
|
|
|
2
|
%
|
|
|
|
|
|
|
||||
Earnings:
|
|
|
|
|
|
||||
Climate Technologies
|
$
|
249
|
|
|
253
|
|
|
2
|
%
|
Tools & Home Products
|
96
|
|
|
96
|
|
|
—
|
%
|
|
Total
|
$
|
345
|
|
|
349
|
|
|
1
|
%
|
Margin
|
23.7
|
%
|
|
23.6
|
%
|
|
|
|
2017
|
|
2018
|
|
Change
|
||||
(dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||||
Net sales
|
$
|
6,790
|
|
|
8,064
|
|
|
19
|
%
|
Gross profit
|
$
|
2,922
|
|
|
3,446
|
|
|
18
|
%
|
Percent of sales
|
43.0
|
%
|
|
42.7
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
SG&A
|
$
|
1,690
|
|
|
2,024
|
|
|
|
|
Percent of sales
|
24.8
|
%
|
|
25.1
|
%
|
|
|
|
|
Other deductions, net
|
$
|
116
|
|
|
187
|
|
|
|
|
Interest expense, net
|
$
|
87
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings from continuing operations before income taxes
|
$
|
1,029
|
|
|
1,161
|
|
|
13
|
%
|
Percent of sales
|
15.2
|
%
|
|
14.4
|
%
|
|
|
|
|
Earnings from continuing operations common stockholders
|
$
|
740
|
|
|
874
|
|
|
18
|
%
|
Net earnings common stockholders
|
$
|
601
|
|
|
874
|
|
|
46
|
%
|
Percent of sales
|
8.8
|
%
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted EPS - Earnings from continuing operations
|
$
|
1.14
|
|
|
1.37
|
|
|
20
|
%
|
Diluted EPS - Net earnings
|
$
|
0.93
|
|
|
1.37
|
|
|
47
|
%
|
Six Months Ended Mar 31
|
2017
|
|
2018
|
|
Change
|
||||
(dollars in millions)
|
|
|
|
|
|
||||
Sales
|
$
|
4,084
|
|
|
5,343
|
|
|
31
|
%
|
Earnings
|
$
|
654
|
|
|
822
|
|
|
26
|
%
|
Margin
|
16.0
|
%
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Sales by Major Product Offering
|
|
|
|
|
|
||||
Measurement & Analytical Instrumentation
|
$
|
1,418
|
|
|
1,632
|
|
|
15
|
%
|
Valves, Actuators & Regulators
|
946
|
|
|
1,793
|
|
|
90
|
%
|
|
Industrial Solutions
|
786
|
|
|
903
|
|
|
15
|
%
|
|
Process Control Systems & Solutions
|
934
|
|
|
1,015
|
|
|
9
|
%
|
|
Total
|
$
|
4,084
|
|
|
5,343
|
|
|
31
|
%
|
Six Months Ended Mar 31
|
2017
|
|
2018
|
|
Change
|
||||
(dollars in millions)
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Sales:
|
|
|
|
|
|
||||
Climate Technologies
|
$
|
1,917
|
|
|
2,050
|
|
|
7
|
%
|
Tools & Home Products
|
795
|
|
|
685
|
|
|
(14
|
)%
|
|
Total
|
$
|
2,712
|
|
|
2,735
|
|
|
1
|
%
|
|
|
|
|
|
|
||||
Earnings:
|
|
|
|
|
|
||||
Climate Technologies
|
$
|
410
|
|
|
418
|
|
|
2
|
%
|
Tools & Home Products
|
184
|
|
|
183
|
|
|
(1
|
)%
|
|
Total
|
$
|
594
|
|
|
601
|
|
|
1
|
%
|
Margin
|
21.9
|
%
|
|
22.0
|
%
|
|
|
|
Sept 30, 2017
|
|
|
Mar 31, 2018
|
|
|
Working capital (in millions)
|
$
|
3,207
|
|
|
1,780
|
|
Current ratio
|
1.6
|
|
|
1.3
|
|
|
Total debt-to-total capital
|
34.8
|
%
|
|
37.9
|
%
|
|
Net debt-to-net capital
|
15.4
|
%
|
|
24.4
|
%
|
|
Interest coverage ratio
|
12.6
|
X
|
|
12.7X
|
|
Period
|
Total Number of Shares
Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
January 2018
|
—
|
|
$0.00
|
|
—
|
|
49,068
|
February 2018
|
1,791
|
|
$69.80
|
|
1,791
|
|
47,277
|
March 2018
|
1,788
|
|
$69.91
|
|
1,788
|
|
45,489
|
Total
|
3,579
|
|
$69.85
|
|
3,579
|
|
45,489
|
12
|
|
|
|
|
|
31
|
|
|
|
|
|
32
|
|
|
|
|
|
101
|
|
Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Earnings for the three and six months ended March 31, 2018 and 2017, (ii) Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 2018 and 2017, (iii) Consolidated Balance Sheets as of September 30, 2017 and March 31, 2018, (iv) Consolidated Statements of Cash Flows for the three and six months ended March 31, 2018 and 2017, and (v) Notes to Consolidated Financial Statements for the three and six months ended March 31, 2018.
|
|
|
EMERSON ELECTRIC CO.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By
|
/s/ Frank J. Dellaquila
|
|
|
|
|
Frank J. Dellaquila
|
|
|
|
|
Senior Executive Vice President and Chief Financial Officer
|
|
|
|
|
(on behalf of the registrant and as Chief Financial Officer)
|
|
|
|
|
May 2, 2018
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|