2009 Agrim Khetan O8D1273 7/13/2009 International Business CIA II
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2009
Agrim Khetan
O8D1273
7/13/2009
International Business CIA II
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Index
1) Company Pr of ile2) Business Diversif ication / Segments
y Pr ocess Management,
y Industrial Automation,
y Network Power,
y Climate Technologies; and
y Appliance and Tools.
3) Number of Subsidiaries
4) To p Management and Organization Structure
5) Mergers, Acquisitions and Cr oss Shareholding
6) Present Financial Analysis
7) Market Share & Competitors Analysis
a. United Technologies (UTX)
b. Caterpillar (CAT)
c. Mitsubishi Heavy Industries Ltd
d. Deere & Company (DE)
e. Illinois Tool Works (ITW)
f . C NH Glo bal N.V. (C NH)
g. Parker-Hannif in (PH)
h. ITT Corporation (ITT)
8) Research & Develo pment
9) Registered Trademarks, Co pyrights and Brands
10) Corporate Governance and Business
11) Joint Venture
12) Law Suits
13) Awards / Recognitions / Certif icate/ Accomplishments
14) SWOT
15) Bibliography
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1. Company Profile
Emerson Electric Co. (Emerson)incorporated in 1890, is a glo bal technologycompany. The Company is engaged indesigning, designing and supplying pr oduct
technology and delivering engineeringservices in a range of industrial, commercialand consumer markets glo bally. TheCompany o perates in f ive business segments:
y Pr ocess Management,
y Industrial Automation,
y Network Power,
y Climate Technologies; and
y Appliance and Tools.
The Pr ocess Management segment pr ovidesmeasurement, contr ol and diagnostic
capabilities for automated industrial
pr ocesses pr oducing items, such as foods,
f uels, medicines and power. The Industrial
Automation segment is engaged in bringing
integrated manuf acturing solutions to
industries glo bally. The Network Power
segment is engaged in pr oviding power and
envir onmental conditioning to
telecommunication systems, data networks
and critical business applications. The
Climate Technologies segment is engaged in
enhancing household and commercial
comfort, as well as food saf ety and energy
eff iciency thr ough air-conditioning and
ref rigeration technology. The Company¶s
Appliance and Tools segment is engaged in
pr oviding designed motors for a range of
applications, appliances and integrated appliance solutions. In March 2008, Emerson
completed the acquisition of Aperture Technologies Inc.
Emerson Electric
Type Public ( NYSE: EMR)
Founded 1890
Headquarters St. Louis, Missouri, USA
Key people David Farr, CEO
Walter J. Galvin, CFO
Edward L. Monser, COO
Charles A. Peters, Sr. Exec. VP
Craig W. Ashmore, Senior VP
Frank L. Steeves, Senior VP
Industry Conglomerates, (Electrical
Major)
Products Pr ocess contr ol systems
Climate technologies
Power technologies
Industrial automation
Electric motors
Storage systems
Network power
Pr of essional tools
Revenue USD24.8 billio
n (2008)
Employees ~140,000(2008)
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2. Business Diversification / Segments
Emerson pr oducts, solutions and services go to market under eight business platforms:
y Pr ocess Management,
y Industrial Automation,y Network Power,
y Climate Technologies; and
y Appliance and Tools.
y Emerson Process Management
The Pr ocess Management segment off ers customers pr oduct technology, as well as
engineering and pr o ject management services for precision contr ol, monitoring and asset
o ptimization of plants that pr oduce power or that pr ocess or treat such items as oil, natural
gas and petr ochemicals; food and beverages; pulp and paper; pharmaceuticals; and municipal
water supplies. The range of pr oducts and services helps customers o ptimize their pr ocess
plant capabilities in the areas of plant saf ety and reliability and output.
Emerson¶s Pr ocess Management systems and sof tware contr ol plant pr ocesses by collecting
and analyzing information f r om measurement devices in the plant, and by using that
information to adjust valves, pumps, motors, drives and other contr ol hardware in the plant
for maximum pr oduct quality and pr ocess eff iciency. Emerson¶s pr ocess contr ol systems can
be extended wirelessly to support a mo bile work force with handheld tools/communicators,
pr ovide site-wide location tracking of peo ple and assets, enable video monitoring and
communicate with wireless f ield devices, increasing the information available to o perations.
Measurement instrumentation measures the physical pr o perties of liquids or gases in a
pr ocess stream, such as pressure, temperature, level, or rate and amount of f low, and
communicates this information to the contr ol system. Measurement technologies pr ovided by
Emerson include Coriolis direct mass f low, magnetic f low, vortex f low, ultrasonic f low,
diff erential pressure, ultralow-f low f luid measurement, temperature sensors and radar based
tank gauging. Emerson measurement pr oducts also are used in custody transf er applications,
such as the transf er of gasoline f r om a storage tank to a tanker truck, where precise metering
of the amount of f luid transf erred helps ensure accurate asset management.
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Analytical instrumentation analyzes the chemical composition of pr ocess f luids and
emissions to impr ove quality and eff iciency, as well as envir onmental compliance. Emerson¶s
analytical technologies include pr ocess gas chr omatographs, in-situ oxygen analyzers,
inf rared gas and pr ocess f luid analyzers, combustion analyzers and systems, and analyzers
that measure pH, conductivity and water quality.
Emerson also pr ovides these same technologies with wireless communication capability. This
allows customers to monitor pr ocesses or equipment that were previously not measurable
(remote, moving/r otating) or not economical to measure due to the cost and diff iculty of
running wires in industrial pr ocess plants.
Contr ol valves respond to commands f r om the contr ol system by continuously and precisely
modulating the f low of pr ocess f luids to pr ovide pr ocess eff iciency and pr oduct quality.
Emerson pr ovides sliding stem valves, r otary valves, butter f ly valves and related valve
actuators and contr ollers. Emerson also pr ovides a line of industrial and residential regulators,
whose f unction is to reduce the pressure of f luids, such as natural gas and liquid petr oleum
gas for transf er f r om high-pressure supply lines to lower pressure systems.
Emerson¶s Plant Web digital plant architecture combines the technologies described above
with the advantages of intelligent plant devices (valves and measurement instruments that
have advanced diagnostic capabilities), o pen communication standards (non-pr o prietary
wired and wireless digital pr otocols allowing the plant devices and the contr ol system to talk
with one another) and integrated modular sof tware, not only to contr ol the pr ocess better but
also to collect and analyze valuable information about plant assets and pr ocesses. This
capability gives customers the ability to detect or predict changes in equipment and pr ocess
per formance and the impact they can have on plant o perations. The PlantWeb architecture
pr ovides the insight to impr ove plant availability and saf ety, and also f urnishes a platform to
continually impr ove asset management and standards compliance, and to reduce startup,
o perations and maintenance costs.
Emerson¶s range of pr ocess automation and asset o ptimization services impr ove automation
pr o ject implementation time and costs, impr ove pr ocess availability and pr oductivity, and
reduce total cost of ownership. These centers serve industries, such as oil and gas, pulp and
paper, chemical, power, food and beverage, and lif e sciences.
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y Emerson Industrial Automation
The Industrial Automation segment pr ovides integrated manuf acturing solutions to the
customers at the source of manuf acturing their own pr oducts. The pr oducts include motors,
transmissio
ns, alternators,
f luid c
ontr
ols and materials j
oining equipment.
Emerson pr ovides a range of drives and electric motors that are used in a range of
manuf acturing o perations and pr oducts, f r om pr oduction assembly lines to escalators in
sho pping malls or supermarket check out stations. Pr oducts in this category include
alternating current (AC) and direct current (DC) electr onic variable speed drives, servo
motors, pump motors, drive contr ol systems, integral horsepower motors (1 HP and above),
f ractional horsepower motors (less than 1 HP) and gear drives.
Emerson¶s power transmission pr oducts include belt and chain drives, helical and worm
gearing, gear motors, motor sheaves, pulleys, mounted and unmounted bearings, couplings,
chains and spr ockets. They are used to transmit power mechanically in a range of
manuf acturing and material handling o perations and pr oducts. The design and application
experience enables the Company to pr ovide both standard and customized automation and
power transmission solutions to the customers.
Emerson pr ovides alternators (low, medium and high voltage) for use in diesel or gas
powered generator sets, as well as high f requency alternators, AC motor /generator sets,
traction generators and wind power generators. The pr oducts in the f luid power and f luid
contr ol category includes contr ol and power the f low of f luids (liquids and gases) in
manuf acturing o perations such as automo bile assembly, food pr ocessing, textile
manuf acturing and petr ochemical pr ocessing. They include solenoid and pneumatic valves,
valve position indicators, pneumatic cylinders, air preparation equipment, and pressure,
vacuum and temperature switches.
Emerson supplies both plastics joining technologies and equipment, and metal welding and joining pr ocesses to the manuf acturing customer base, including automotive, medical devices
and toys. It also pr ovides precision cleaning and liquid pr ocessing solutions to industrial and
commercial manuf acturers. The pr oducts include ultrasonic joining and cleaning equipment,
linear and orbital vibration welding equipment, systems for hot plate welding, spin welding,
and laser welding, and aqueous, semi-aqueous and vapor cleaning systems.
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y Emerson Network Power
Emerson¶s Network Power segment designs, manuf actures, installs and maintains pr oducts
pr oviding grid to chip electric power conditioning, power reliability and envir onmental
co
ntr olfo
r teleco
mmunicatio
ns networks, data centers and
other critical applicati
ons. The
pr oducts in this segment include power systems, embedded power supplies, precision cooling
and inbound power systems, along with 24-hour service.
Emerson supplies uninterruptible AC and DC power systems, which pr ovide reliable,
conditioned power to telecommunication networks, data centers and other critical equipment
in the event of a black out or line surges and spikes. Power Systems¶ pr oducts range f r om
stand-alone units to complete systems incorporating rectif iers, distribution units, surge
pr otection, batteries and system supervision.
Embedded power supplies are installed by original equipment manuf acturers to convert or
condition power for micr o pr ocessors and peripherals in a wide range of telecommunication,
health care, computer and industrial applications using standard or custom AC/DC or DC/DC
designs. They are also used in consumer pr oducts, in the form of power adaptors for ink jet
printers and in chargers for mo bile phones.
Embedded Computing designs and develo ps embedded computer systems for original
equipment manuf acturers and systems integrators serving telecommunications, def ense,
aer ospace, medical and industrial automation end markets. Pr oducts range f r om
communication platforms, blades and modules to enabling sof tware and pr of essional
services.
Emerson¶s precision cooling pr oducts pr ovide temperature and humidity contr ol for
computers, telecommunications and other sensitive equipment. These pr oducts range f r om
14,000 to 4 million British thermal units (BTUs) in capacity and are available in up f low,
down f low and overhead conf igurations.
Emerson inbound power technology pr ovides reliable power systems which automatically
transf er critical application loads f r om a utility to emergency backup generators in the event
of a black out or br ownout. Pr oducts include automatic transf er switches, paralleling and
synchr onizing gear and related distribution equipment and contr ol systems.
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Emerson¶s connectivity pr oducts serve the needs of the wireless communications, telephony
and data network, CATV, def ense, security systems and health care industries and other
industrial customers glo bally with a range of radio f requency, micr owave and f iber o ptic
interconnect components and assemblies. The service/trademarks and trade names within the
Network Power segment include Emerson Network Power, Aperture, Artesyn, ASCO Power
Technologies, Astec, Engineered Endeavors, Knürr, Liebert, Liebert Services, Netsure,
Netspan, Semf lex, Stratos and Tr ompeter.
y EmersonClimate Technologies
The Climate Technologies segment pr ovides pr oducts and services for all areas of the climate
contr ol industry, including residential, commercial and industrial heating and air
conditioning, and commercial ref rigeration. The technology enables homeowners and
businesses to better manage their heating, air- conditioning, and ref rigeration systems for
impr oved contr ol and lower energy bills. This segment also digitally contr ols and remotely
monitors ref rigeration units in gr ocery stores and other food distribution outlets to impr ove
f reshness and food saf ety.
Emerson pr ovides a range of heating and air-conditioning pr oducts that help reduce
o perational and energy costs and create comfortable envir onments in all types of buildings.
These pr oducts include recipr ocating and scr oll air-conditioning compressors, including an
ultra-eff icient residential scr oll compressor with two stages of cooling capacity which runs at
f ull capacity only during the hottest time periods; standard and pr ogrammable thermostats;
monitoring equipment and electr onic contr ols for gas and electric heating systems; gas valves
for f urnaces and water heaters; nitride ignition systems for f urnaces; sensors and thermistors
for home appliances; and temperature sensors and contr ols.
Emerson¶s technology is incorporated into equipment to ref rigerate food and beverages in
supermarkets, convenience stores, food service o perations and ref rigerated trucks and
transport containers. The ref rigeration pr oducts are also used in industrial applications, such
as envir onmental test chambers, and in medical applications, such as magnetic resonance
imaging (MR I) machines. These pr oducts include compressors; precision f low contr ols;
system diagnostics and contr ols that pr ovide precise temperature management; and
envir onmental contr ol systems.
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y Emerson Appliance and Tools
Emerson¶s Appliance and Tools segment includes a range of pr oducts and solutions in
motors, appliances and components, tools and storage. Emerson pr ovides a range of electric
motors, c
ontr
ols and assemblies
f r o
mf racti
onal t
oseveral th
ousand h
orsep
ower
output. The
pr oducts are designed to give the customers the quality, reliability, and energy eff iciency
needed in their specif ic applications. Emerson¶s electric motors are used in a range of home
appliances. They include variable, f ixed and multi-speed motors used in horizontal and
vertical axis washers, dryers, and dishwashers. The motors are also used in residential and
commercial pumps, such as those pr ovided in spas, pools and golf course irrigation
equipment; in heating, ventilation and air conditioning (HVAC) equipment, such as f urnaces,
compressors, condenser f ans, heat pumps, cooling towers and commercial air handlers; and in
industrial, f arming and mining applications, where pr oducts, such as explosion-pr oof motors, paint-f ree washdown motors and industrial severe duty motors are off ered.
Emerson pr ovides a number of appliances and appliance technology solutions, ranging f r om
water valves and contr ols to heating elements and switches. The appliance off ering includes
residential and commercial garbage disposers and ceiling f ans, instant hot-water dispensers,
and compact electric water heaters. The appliance solutions pr ovide integrated systems, sub-
systems and components for appliances that include electr onic and electr omechanical
co
ntr o
lsfo
r washers, dryers, dishwashers, ref
rigerato
rs ando
ther ho
me appliances, as well asheating elements for dishwashers, electric ovens and water heaters.
The pipe-working tools are used by plumbing and mechanical pr of essionals to install and
repair piping systems. These tools include pipe wrenches, pipe cutters, pipe threading and r oll
gr ooving equipment; a time-saving system that joins tubing thr ough mechanical crimping;
drain cleaners; diagnostic systems including closed-circuit television pipe inspection and
locating equipment; and tubing tools. Other pr of essional tools include water jetters, wet-dry
vacuums, r olling storage boxes, truck work boxes, bolt cutters, and van and truck ladder
racks. Do-it-yourself tools, available at home impr ovement retail outlets, include drain
cleaning equipment, pipe and tube working tools, and wet-dry vacuums.
Emerson pr ovides a range of f reestanding, f ixed and mo bile storage pr oducts for residential,
commercial, healthcare and food service applications. The pr oducts for the home include
wall-mounted and f reestanding shelving systems, cabinet and closet organizers, home off ice
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storage, and drawer systems and containers, available in wire, stainless steel and laminate.
The storage solutions also help commercial customers utilize space in the eff icient manner.
These solutions include storage and display shelving, stock-picking and kitting carts,
cabinets, totes, bins, workstations, and merchandising and inventory storage racks. Pr oducts
pr ovided to the healthcare industry assist in medical response and treatment; they include
emergency and o perating r oom carts, medication carts, polymer and wire shelving systems,
and sterile worktables. The food service equipment helps meet the storage needs of the food
service and hospitality industries, such as restaurants and hotels. This equipment includes
polymer and wire storage systems, busing carts, pan and tray racks, transport carts and
workstations.
Business Segments Share
Emerson Process Management (23%):Emerson off ers engineering services and
precision tools that help impr ove the quality of output, saf ety and reliability of pr ocessing
items such as oil ref ining, pulp/paper, pharmaceuticals, sewage treatment, community
water supplies, or beverages.[13][14]
Emerson Industrial Automation (18%):Unlike Pr ocess Mangement, this sector is
dedicated to pr oviding the bulk of the manuf acturing plant: motors, power f luid,
transmissions, material joiners and other such equipment. Some goods are also used in
hazardous industries such as oil and gas drilling, construction sites, and petr ochemical
plants.[15]
Emerson Network Power (21%): This segment of the business pr ovides precision
cooling, power systems and service o perations for computers, data centers,
telecommunication systems, security systems, and other sensitive equipment to pr otect
them f r om power surges, black outs, overheating, or f reezing. It also sells ways to transf er
data such aswireless communications and f iber o ptics.[16]
In late 2007 Network Power
acquired Motor ola's Embedded Communications Computing (ECC) business for
appr oximately $350 million. As a result, Network Power sales increased by 27%, the
largest increase amongst the 5 sectors.[17]
Emerson Climate Technologies (17%):The climate technologies segment pr ovides
residential and commercial air-conditioning and commercial ref rigeration services and
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methods for digitally and remotely monitoring and contr olling ref rigeration units. These
pr oducts are used by convenience stores, super markets, and ref rigerated trucks as well as
in envir onmental testing f acilities and for medical use.[18]
Emerson Appliance and Tools (
21%):
This segment makes pr o
ducts such as ceilingf ans, garbage disposals, instant hot water dispensers, bolt cutters, and air compressors.
They also pr oduce f ixed, variable, and multi-speed motors used in washing machines,
dishwashers, water heaters and other such pr oducts. Many of the pr oducts of this sector
are also used in mining and f arm and construction machinery. They also service hospitals
with o perating r oom tables, medical carts, and sterile worktables.
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3. Number of Subsidiaries
Some of Emerson Electric Co. recognised Subsidiaries are:-
y AIH Inc., Delaware;
y Aperture Technologies Inc., Delaware;
y Artesyn Technologies Inc.;
y Astec International Holdings Limited, United Kingdom;
y B.B.I. S.A. de C.V., Mexico;
y Branson Ultrasonic S.A., Switzerland;
y ClosetMaid Corporation;
y Cooligy Inc.;
y Daniel Industries Inc.;
y Emerson Electric (U.S.) Holding Corporation;
y Emerson Electric Overseas Finance Corp.;
y Emerson Network Power; R osemount Inc.;
y Emerson Pr ocess Management (India) Pvt. Ltd.;
y Liebert Corporation;
y Ridge Tool Company;
y Emerson Electric (Asia) Limited, Hong K ong;
y Emerson Electric de Colombia Ltda., Colombia;
y Emerson Electric Nederland B.V., Netherlands;
y Fisher R osemount Temperature B.V., Netherlands;
y Ortrud Verwaltungsgesellschaf t mbH, Germany;
y Emerson Sice S.r.l., Italy;
y EMR Holdings Inc.;
y La Francaise de Manutention SAS, France;
y Tranmet Holdings Limited, United Kingdom;
y EPMCO Holdings Inc.;
y General Equipment and Manuf acturing Company Inc;
y Numatics Incorporated;
y Wiegand S.A. de C.V., Mexico.
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4. Top Management and Organization Structure
Schlueter, Richard 54 2003 Vice President - Accounting, Chief Accounting Off icer
Steeves, Frank 54 2007 Senior Vice President, General Counsel, Secretary
Ashmore,
Craig 46 2004 Seni
or Vice President - Planning & Devel
o pment
Peters, Charles 53 -- Senior Executive Vice President, Director
Ridgway, R. 73 1995 Director
Busch, August 71 1985 Director
Horton, R o bert 69 1987 Director
Loucks, Vernon 74 1979 Director
Golden, Arthur 62 2000 Director
Prueher, Joseph 66 2001 Director
Fernandez G., Carlos 42 2001 Director
Menzer, John 57 2002 Director
Stephenson, Randall 48 2006 Director
Johnson, William 60 2008 Director
Green, Harriet 47 2008 Director
Boersig, Clemens 60 2009 Director
Monser, Edward 58 2001 Chief Operating Off icer
Galvin, Walter 62 2004 Chief Financial Off icer, Senior Executive Vice President, Director
Farr, David 54 2005 Chairman of the Board, President, Chief Executive Off icer
Organizational Structure
David Farr,
Chairman & CEO.
Walter Glavis,
SEVP & CFO
Charles Peter,
SEVP & Director
Edward Monsre,
COO
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5. Mergers & Acquisitions
In March 2008, Emerson completed the acquisition of Aperture Technologies Inc.
28 September 2007 - It was announced that Emerson will acquireMotor ola¶s Embedded
Communications Computing (ECC) business for US$ 350 million, Completed by the end of
2007. Other acquisitions by Emerson include:
Astec Power
Artesyn Technologies Inc.
Bristol Babcock
Closetmaid
Computer Power Systems Corp.
Contr ol Techniques
Damcos A/S
Daniel Measurement & Contr ol
Decision Management International,
Inc. (DMI)
Ericsson Energy Systems
Fisher Contr ols
Intermetr o
Kenonic Contr ols (Calgary)
Knaack Manuf acturing Company
Knurr AG
Ler oy-Somer
Liebert Corporation
Li
o
nville SystemsI
nc. Mo brey
Micr omotion Inc.
NORPAC Contr ols
Numatics
Orion CEM (Atlanta)
PC&E, Inc. (St. Louis)
R IDGID
R osemount Inc.
R oxar ASA - acquisition announced 2-
Mar-2009
Saab Marine Electr onics
Shaf er Valve Company
Skil (former division, now sold
to Bosch Power Tools)
Stack-A-Shelf
Stratos International, Inc.
The Automation Gr oup
Therm-O-Disc
To pWorx
Weatherguard
Western Forge
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6. Present Financial Analysis
Emerson Electric Income Statement and Balance Sheet
2008 2007 2006
Revenue ($ mil.) 24,807.0 22,572.0 20,133.0
Gr oss Pr of it ($ mil.) 9,139.0 8,111.0 7,168.0
Operating Income ($ mil.) -- 3,335.0 2,891.0
Total Net Income ($ mil.) 2,412.0 2,136.0 1,845.0
Diluted EPS ( Net Income) 3.06 2.66 2.24
Assets Sep 08 Sep 07 Sep 06
Current Assets
Cash 1,777.0 1,008.0 810.0
Net Receivables 4,618.0 4,260.0 3,716.0
Inventories 2,348.0 2,227.0 2,222.0
Other Current Assets 588.0 570.0 582.0
Total Current Assets 9,331.0 8,065.0 7,330.0
Net Fixed Assets 3,507.0 3,431.0 3,220.0
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Other Noncurrent Assets 8,202.0 8,184.0 8,122.0
Total Assets 21,040.0 19,680.0 18,672.0
Liabilities and Shareholder's Equity Sep 08 Sep 07 Sep 06
Current Liabilities
Accounts Payable 2,699.0 2,501.0 2,305.0
Short-Term Debt 1,221.0 404.0 898.0
Other Current Liabilities 2,653.0 2,641.0 2,171.0
Total Current Liabilities 6,573.0 5,546.0 5,374.0
Long-Term Debt 3,297.0 3,372.0 3,128.0
Other Noncurrent Liabilities 2,057.0 1,990.0 2,016.0
Total Liabilities 11,927.0 10,908.0 10,518.0
Shareholder's Equity
Pref erred Stock Equity 0.0 0.0 0.0
Common Stock Equity 9,113.0 8,772.0 8,154.0
Total Equity 9,113.0 8,772.0 8,154.0
Shares Outstanding (mil.) 755.0 755.0 755.0
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7. Market Share & Competitors Analysis Competition
Some of the largest competitors includeABB Ltd (ABB), General Electric Company
(GE) and Hitachi (HIT) in the Industrial Equipment & Components sector. ABB
(ABB) competes with Emerson's Pr ocess Management and Industrial Automation.General
Electric Company (GE), one of the world's largest conglomerates, competes with the
Climate Technologies, Industrial Automation and Appliance & Tools segments. The
Tokyo based Hitachi (HIT) competes against Emerson's Network Power. The table below
shows a comparison of the four companies.
' EMR ABB GE HIT Industry
Market Cap: 42.23B 69.97B 281.26B 24.07B 534.66M
Employ ees: N/A 110000 327000 389752 2.10K
Qtrly Rev Gr owth (yoy): 11.70% 28.00% 7.80% 8.40% 14.20%
Revenue (ttm): 23.78B 30.95B 172.98B 103.84B 681.05M
Gr oss Margin (ttm): 36.33% 31.46% 37.96% 21.82% 33.48%
EBITDA (ttm): 4.47B 5.15B 37.53B 8.20B 52.46M
Oper Margins (ttm): 15.94% 14.67% 14.36% 3.08% 11.52%
Net Income (ttm): 2.32B 3.63B 21.90B -537.60M 22.64M
Within the manuf acturers of industrial equipment, Emerson f aces:
United Technologies (UTX) which owns Carrier, the world¶s largest HVAC (Heating,
Ventilation & Air Conditioning) company.
Caterpillar (CAT), a competitor in the Tools & Appliance and Industrial Automation
sector, is the leader in total sales of heavy duty engines and turbines and construction
equipment.
Mitsubishi Heavy Industries Ltd also pr oduces Industrial Equipment and is an off shoot
of the car manuf acturer.
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MA N Aktienge sells chaf t is a to p manuf acturer of equipment and supplies used in the
pr ocessing of metal and plastic.
Deere & Company (DE) is the worlds largest pr oducer of f arming equipment and
machinery
Illinois Tool Works (ITW) is a large pr oducer of engineering components
C NH Glo bal N.V. (C NH) is a large pr oducer of agriculture and construction
equipment.
Parker-Hannif in (PH) pr oduces f luid-power systems and motion contr ol equipments.
K omatsu Ltd Ord pr oduces mining and construction equipment.
ITT Corporation (ITT) pr oduces def ense electr onics for the U.S. military in addition to
highly engineered pr oducts for military aircraf t and gears and shock absorbers for
general aviation.
Emerson also f aces many small, specialized, private companies such as Shupper-Brickle
Equipment Co which makes winches, hoists and cranes.
The company's diversity in pr oduct range and geographic locations makes it more stable
than competitors. For example, if the commercial ref rigeration sector declines, Emerson is
able to rely on its other pr oducts to maintain it. Its glo bal reach gives it the ability to
maintain a consistent revenue even if the economy were to decline in one market
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8. RESEAR CH & DEVELOPMENT
Some of important outcome of R & D of Emerson :
DEVELOPMENT DESCRIPTION
Genflo Sand Suction Off
Loading System
Atomisation of sand barge off loading by high pressure
water agitation and suction.
Sand Classification Grading of sand particles according to specif ication.
Moisture Reduction
System
Reduction of moisture in sand drying stacks via suction
pr ocesses.
R obotic Palletisation Auto
mated Bagging plant uses r o bot t
ostack
f illed bags
onto
pallets.
Super flow Screed Intr oduction of pumped liquid screed to impr ove f loor laying
service.
Menage Sand Mix Intr oduction of recycled materials into a sand mix specially
designed for horse ménages.
Perito Management
Information systems
Intr oduction of a new accounts package which allows for
detailed µdrill down¶ acr oss key pre specif ied f ields of
information.
EFQM Strategic business impr ovement pr ocess.
On Time Delivery Process Measurement of Ready Mixed Concrete delivery against
customer specif ication.
Track ing System Satellite tracking of all company vehicles to impr ove
delivery and vehicle accountability.
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9. Registered Trademarks, Copyrights and Brands
For more than a century, Emerson Electric Co. has been known as the place where peo pl
bring techno
lo
gy and engineering to
gether to
create so
lutio
nsfo
r the benef
itof
custo
mersAs technology evolved and the needs of our customers changed, Emerson r ose to th
challenge to solve pr o blems and create o pportunity.
Customers in today's mission critical industries f ace a new set of challenges ar ound th
world. To be successf ul, they are looking for more than a great pr oduct at a good price.
They need reliable solutions f r om a single source. They demand a partner who ca
leverage a breadth of pr oducts, glo bal presence, superior technology and industr
experience and leadership to deliver the most advanced, comprehensive solutions.
Today, Emerson's 60+ industry-leading divisions are aligned under unique Emerso
Brands. These customer-f acing, descriptive organizations leverage Emerson's quality
competency and experience and off er a place where customers can turn forsolutions,
answers and expertise in a given f ield or industry.
y Emerson Network Power ² a complete spectrum of best-in-class reliable
power, precision envir onmental and connectivity solutions for today's
teleco
mmunicatio
ns and data network in
f rastructure
y Emerson Pr ocess Management ² total pr ocess industry solutions that o ptimiz
pr ocess plant pr oductivity thr ough intelligent f ield devices, per formance sof twar
and consulting and engineering expertise
y Emerson Climate Technologies ² industry-def ining heating, ventilating, ai
conditioning and ref rigeration technologies and systems for commercial an
residential applications.
The service/trademarks and trade names within the Climate Technologie
segment include Emerson Climate Technologies, Alco Contr ols, Cliv
Samuels & Associates, Computer Pr ocess Contr ols, Co peland, Desig
Services Network, Emerson Climate Technologies Distribution Services
Emerson Climate Technologies Educational Services, Emerson Climat
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Technologies Flow Contr ols, Emerson Climate Technologies Retail Services
Fusite, Therm-O-Disc and White-R odgers.
y Emers
on St
orage S
oluti
ons ² inn
ovative, sturdy and secure shelving an
storage pr oducts and solutions that maximize usable square footage for residential
commercial, and industrial locations
y Emerson Pr of essional Tools ² a br oad range of tools and equipment designe
to maximize pr oductivity and eff iciency for pr of essional trades and do-it-
yourself ers thr oughout the world
y Emerson Motor Technologies ² leaders in innovative motor and driv
solutions and customized technologies that power everything f r om consume
appliances to large industrial applications
y Emerson Industrial Automation ² motion contr ol systems and components
plastics joining and precision cleaning equipment; and materials testing equipment
and supplies pr ovide customized solutions for diverse industries worldwide
The service/trademarks and trade names within the Industrial Automatio
segment include Emerson Industrial Automation, Appleton, ASCO, ASC
Joucomatic, Branson Ultrasonics, Br owning, Contr ol Techniques, Emerso
Power Transmission, Kato Engineering, K o p-Flex, Ler oy Somer, McGill,
Morse, Numatics and O-Z/Gedney.
y Emerson Appliance Solutions ² world-class engineering and technologies fo
design and delivery of integrated appliance solutions that drive consumer valu
for the residential and commercial marketplace
The service/trademarks and trade names within the Appliance and Tool
segment include Emerso
n Appliance Soluti
ons, Emers
on Heating Pr
oducts
Emerson Motor Technologies, Emerson Pr of essional Tools, Emerson Storag
Solutions, ClosetMaid, Digital Appliance Contr ols, Emerson, Flo Healthcare
InSinkErator, Knaack, Lionville, Mallory, METRO, R IDGID, U.S. Electrical
Motors and Weather Guard.
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10. Corporate Governance and Business
Emerson is committed to conducting its business aff airs with honesty, integrity and in
f ull compliance with all applicable laws. All employees of Emerson and its divisions and
subsidiaries are to conduct themselves in ways that demonstrate uncompr omising ethical
standards in all of their dealings with customers, suppliers, governments, the public and
each other.
The Emerson Business Ethics Pr ogram outlines the company's Code of Business
Ethics and employees' responsibilities, with supplements which address the special
responsibilities of directors and executive off icers.
Emerson Chief Executive and Senior Financial Officers Code of Ethics
This Emerson Chief Executive and Senior Financial Off icer Code of Ethics (³Financial
Code´) has been ado pted by the Company¶s Board of Directors (³Board´) and summarizes the
standards applicable to the Chief Executive Off icer, the Chief Financial Off icer, the Chief
Accounting Off icer and the Contr oller (³Senior Off icers´). This Financial Code supplements and
is in addition to the Emerson Code of Business Ethics and Conduct.
As a public company, it is of critical importance that Emerson¶s f ilings with the Securities
and Exchange Commission and others be accurate and timely. The Senior Off icers bear a special
responsibility for pr omoting integrity thr oughout the organization, with responsibilities to
stakeholders both inside and outside of the Company. The Senior Off icers have a special r ole both
to adhere to these principles themselves, and also to ensure that a culture exists thr oughout the
Company as a whole that ensures the f air, timely and accurate reporting of Emerson¶s f inancial
results and condition.
Because of this special r ole, the Senior Off icers are bound by this Financial Code to:
y Act with honesty and integrity, practice and pr omote ethical conduct, and disclose to the
General Counsel, the Board or its Public Policy Committee (the ³Committee´) any
material transaction or relationship that reasonably could be expected to give rise to actual
or apparent conf licts of interest between any Senior Off icer¶s personal and pr of essional
relationships.
y Pr ovide information that is complete, o bjective, relevant, and otherwise necessary to
ensure f ull, f air, accurate, timely and understandable disclosure in reports and documents
that Emerson f iles with, or submits to, the Securities and Exchange Commission or others,
and in other public communications made by the Company.
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y Comply with applicable laws, rules, standards, best practices and regulations of f ederal,
state, pr ovincial and local governments, and other appr o priate private and public
regulatory, listing and standard-setting agencies.
y Avoid any breach of f iduciary duty, any self -interested transactions with the Company or
any unit, and pr o
mptly repo
rt to
the GeneralCo
unsel, the Bo
ardor the
Committee any
conduct that he or she believes is or may be in violation of law, regulations, business
ethics or of any pr ovision of this Financial Code, including any transaction or relationship
that reasonably could be expected to give rise to such a violation.
Any waiver of or amendment to this Financial Code may only be made by the Board and will
be pr omptly is closed in accordance with applicable laws, rules and regulations. Requests for
waivers of any pr ovision of this Financial Code must be made in writing to the Board.
If a Senior Off icer is f aced with a diff icult ethical decision or has doubts as to the appr o priate
course of action in a particular situation, he or she should consult with the General Counsel, the
Board or the Committee. Each Senior Off icer will be held accountable for adherence to this
Financial Code. Violations of this Financial Code, including f ailures to report actual or potential
violations by others, will be viewed by Emerson as a severe disciplinary matter that may result in a
personnel action, up to and including termination of employment. If a Senior Off icer believes that
a violation of this Financial Code has occurred, he or she is required to pr omptly inform the Board
or the Committee.
11. Joint Venture
Emerson¶s-owned EGS Electrical Gr oup joint venture with SPX Corporation
manuf actures a range of components for current- and noncurrent-carrying electrical
distribution devices. The pr oducts include conduit and cable f ittings, plugs and
receptacles, industrial lighting, and enclosures and contr ols. Pr oducts in this category are
used in hazardous, industrial, commercial and construction envir onments, such as oil and
gas drilling and pr oduction sites, pulp and paper mills and petr ochemical plants.
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12. Law Suits
NBC Heroes lawsuit, Filed On October 2, 2006,
Emerson, the company that makes the po pular In Sink Erator garbage disposals,
f iled suit in f ederal court against NBC regarding a scene that appeared in the pilot episode
of the network's TV series Heroes. The scene depictedClaire Bennet reaching into an
active garbage disposal to retrieve a ring, and severely injuring her hand in the pr ocess.
Emerson's suit claims the scene "casts the disposer in an unsavoury light, irreparably
tarnishing the pr oduct" by suggesting that serious injuries will result "in the event
consumers were to accidentally insert their hand into one."
Emerson asked for a ruling barring f uture br oadcasts of the pilot, which is
available on NBC's website and has already aired on NBC Universal-owned cable
networks USA and Sci-Fi. It also sought to block NBC f r om using any Emerson
trademarks in the f uture. Emerson is an appliance market competitor withGeneral
Electric, the owner of NBC.
On February 23, 2007, the case against NBC was dr o pped. NBC Universal and Emerson
Electric reached an agreement to settle the lawsuit outside of court
Emerson ElectricC
o. v. John Does, filed March 20, 2008
Plaintiff Emerson Electric, a Missouri company, states "This is a Complaint for an
injunction, damages, and other appr o priate relief to prevent unknown Def endants f r om
engaging in a widespread f raudulent internet scheme that involves the inf ringement and
misappr o priation of Plaintiff ¶s trademarks. In this scheme, Def endants have impersonated
Emerson and its chairman David N. Farr in emails and on internet jo b boards to trick
unsuspecting internet users into believing they have o btained jo bs with Emerson. In their
supposed capacity as Emerson employees, these victims have ± on instruction f r om
Def endants ± unwittingly cashed f raudulent United States Postal Service money orders or
certif ied checks on behalf of Def endants. Def endants¶ scam has caused Emerson
irreparable harm, damaged its reputation, damaged its [EMERSO N] mark, caused
conf usion in the marketplace as to the origin of the jo b off ers and Emerson¶s r ole in the
scam, and caused Emerson to incur signif icant expenses and utilize signif icant resources in
an effort to halt the scammers and sto p the f raud."
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13. Awards / Recognitions / Certificate/ Accomplishments
FORTU NE 500
April 2009
Emerson moved f r om No. 111 to No. 94 among America's 500 largest corporations, as
ranked by revenues.
FORTU NE World's Most Admired Companies
March 2009
For the second consecutive year, Emerson has been named to the magazine¶s list of the
World¶s Most Admired Companies and was ranked No. 2 in the electr onics industry
category. Emerson was previously included in the magazine¶s list of America¶s Most
Admired Companies.
Institutional Investor Magazine¶s America¶s Most Shareholder-Friendly Companies
March 2009
Emerson moved up f r om No. 3 to No. 2 in its second consecutive year as beingamong
the to p companies listed in the Electrical Equipment/Multi-Industry category. The list
ref lects the o pinions of 675 buy-side analysts and portfolio managers at more than 375
investment management f irms.
Uptime Institute¶s Glo bal Green 100
February 2009
Emerson was named to the 2009 list sponsored by the Uptime Institute, a leading
independent think tank focused on the glo bal data center industry, in recognition of its
commitment to and pr ogress toward reducing energy consumption and carbon footprint.
Forbes 400 Best Big Companies in America
December 2008
Emerson is again ranked among the country's 400 best of the biggest publicly traded
companies. Emerson has been f eatured on the Forbes 400 list for the past 10 years.
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2008 Corporate Citizenship Award
December 2008
Presented by the St. Louis RegionalChamber & Gr owth Association, Emerson was
recognized for its exceptional commitment to enhancing the quality of lif e in St. Louis by
pr oviding community leadership in the areas of economic develo pment and philanthr o pic
giving.
InformationWeek 500
September 2008
Emerson was ranked No. 117 on the magazine's annual listing of the500 most innovative
users of information technology in the United States.
FORTU NE Glo bal 500
July 2008
Emerson is No. 375 on FORTU NE's list of the world's largest companies, as ranked by
revenues.
Electr onic Design¶s To p 100 Employersof Electr onic Designers
June 2008
Emerson was No. 15 on the magazine's ranking of the to p 100 employers of electr onic
designers that have the most inf luence on today's engineering careers.
Barr on's 500
May 2008
Emerson moved up to No. 24 on the magazine's most recent ranking of the largest
publicly traded companies in the U.S. and Canada based on sales and cash f low.
Forbes Glo bal 2000
April 2008, Emerson ranks No. 275 of the 2,000 largest companies worldwide, as
measured by a composite of sales, pr of its, assets, and market value. Forbes also named
Emerson as one of 130 Glo bal High Per formers.
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14. SWOT
Strengths
Distinctive Competencies
y
Excellent management training pr o
gramy Ability to change direction and constantly reinvent itself to deal with changing
times
y Ability to o perate successf ully in diff erent industries
Core Competencies
y Ability to attract highly qualif ied and experienced employees
y Encourage entrepreneurship and risk-taking among employees
y Implement order-tracking sof tware and compare numbers against targets
y Use customer loyalty measures that tie management¶s bonuses to their results
y
Eff
ective reso
urce allo
catio
n
Ordinary Competencies
y Ability to retain employees thr ough str ong pay and to p per formance
y Have an innovative culture
y Focus on customers thr oughout their business pr ocesses
y Economies of scale
Opportunities y Increased new home construction
y
More disposable income among consumersy Falling price of electr onics
Weaknesses y Allocating f unds to unpr oductive or minimally pr oductive businesses
y Inconsistent customer service
Threats y Increased regulations regarding outsourcing
y Increased foreign competition
y Increasing use of the Internet and cable and satellite televisiony Rising price of steel
y Increasing antitrust legislation
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15. Bibliography
y http://www.reuters.com/f inance/stocks/incomeStatement?symbol=EMR. N
y http://www.manta.com/company/mmc1p0y
y http://www.reuters.com/f inance/stocks/companyPr of ile?symbol=EMR. N
y http://en.wikipedia.org/wiki/Conglomerate_(company)
y http://en.wikipedia.org/wiki/Emerson_Electric_ Company
y http://wrightreports.ecnext.com/wrightreports/sample/C39290770.pdf
y http://phx.corporate-ir.net/phoenix.zhtml?c=107575&p=ir ol-govconduct
y http://media.corporate-ir.net/mediaf iles/ir ol/10/107575/pdf s/CEOandSrFO
CodeOf Ethics.pdf
y http://www.sec.gov/Archives/edgar/data/32604/000114420408066523/v132847_ex21.
htm