Form 8-K - Current report

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): February 7, 2024

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
		NYSE Chicago
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 2.02 Results of Operations and Financial Condition

Quarterly Results Press Release

On Wednesday, February 7, 2024, a press release was issued regarding the first quarter results of Emerson Electric Co. (the “Company”). A copy of this press release is furnished with this Current Report on Form 8-K as Exhibit 99.1.

References to underlying orders in the press release refer to the Company's trailing three-month average orders growth versus the prior year, excluding currency, and significant acquisitions and divestitures.

Non-GAAP Financial Measures

The press release contains non-GAAP financial measures as such term is defined in Regulation G under the rules of the Securities and Exchange Commission. While the Company believes these non-GAAP financial measures are useful in evaluating the Company, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies. The reasons management believes that these non-GAAP financial measures provide useful information are set forth in the Company’s most recent Form 10-K filed with the Securities and Exchange Commission and in the press release furnished with this Form 8-K.

Forward-Looking and Cautionary Statements

Statements in the press release 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 impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectations for its consolidated results, other than as noted herein.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.


Exhibit Number						Description of Exhibits

99.1						Emerson's February 7 , 202 4 press release announcing first quarter results.
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:	February 7, 2024	By:	/s/ John A. Sperino
			John A. Sperino Vice President and Assistant Secretary

Emerson Reports First Quarter 2024 Results; Updates 2024 Outlook

ST. LOUIS (February 7, 2024) - Emerson (NYSE: EMR) today reported results1 for its first quarter ended December 31, 2023 and updated its full year outlook for fiscal 2024. Emerson also declared a quarterly cash dividend of $0.525 per share of common stock payable March 11, 2024 to stockholders of record on February 16, 2024.


(dollars in millions, except per share)	2023 Q1	2024 Q1	Change
Underlying Orders2			4%
Net Sales	$3,373	$4,117	22%
Underlying Sales3			10%
Pretax Earnings	$422	$139
Margin	12.5%	3.4%	(910) bps
Adjusted Segment EBITA4	$765	$1,014
Margin	22.7%	24.6%	190 bps
GAAP Earnings Per Share	$0.56	$0.25	(55)%
Adjusted Earnings Per Share5	$0.78	$1.22	56%
Operating Cash Flow	$302	$444	47%
Free Cash Flow	$243	$367	51%

Management Commentary

“Emerson's first quarter results exceeded expectations in key financial metrics including underlying sales, operating leverage and adjusted earnings per share,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “Our strong start to the year, continued focus on execution, and resilient process and hybrid demand provide the confidence to update our 2024 outlook.”

Karsanbhai continued, “NI, now referred to as Test & Measurement, started the year strong delivering robust sales and margins. We have increased and accelerated our synergy plan in Test & Measurement and remain focused on creating value.”

2024 Outlook

The following tables summarize the fiscal year 2024 guidance framework. The 2024 outlook assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.


	2024 Q2	2024
Net Sales Growth	12.5% - 14.5%	14.5% - 17.0%
Underlying Sales Growth	3.5% - 5.5%	4.5% - 6.5%
Earnings Per Share	$0.68 - $0.72	$2.80 - $2.95
Amortization of Intangibles	~$0.35	~$1.42
Restructuring and Related Costs	~$0.09	~$0.34
Loss on Copeland Equity Method Investment	~$0.06	~$0.20
Amortization of Acquisition-related Inventory Step-up	---	$0.38
Acquisition / Divestiture Fees and Related Costs	~$0.04	~$0.26
Discrete Tax Benefits	---	($0.10)
Adjusted Earnings Per Share	$1.22 - $1.26	$5.30 - $5.45
Operating Cash Flow		$3.0B - $3.1B
Free Cash Flow		$2.6B - $2.7B

1 Results are presented on a continuing operations basis.

2 Underlying orders does not include AspenTech.

3 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.

4 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.

5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, the income/loss of Emerson's 40% share of Copeland, the amortization of acquisition-related inventory step-up, acquisition/divestiture fees and related costs, discrete tax benefits, an AspenTech Micromine purchase price hedge, and write-offs associated with Emerson's Russia exit.

Page 2

Conference Call

Today, beginning at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time, Emerson management will discuss the first quarter results during an investor conference call. Participants can access a live webcast available at www.emerson.com/investors at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

About Emerson

Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.

Forward-Looking and Cautionary Statements

Statements in this press release 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 impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

Emerson uses our Investor Relations website, www.Emerson.com/investors, as a means of disclosing information

which may be of interest or material to our investors and for complying with disclosure obligations under Regulation

FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases,

SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be

accessed through, our website is not incorporated by reference into, and is not a part of, this document.


Investors:			Media:
Colleen Mettler			Joseph Sala / Greg Klassen
(314) 553-2197			Joele Frank, Wilkinson Brimmer Katcher
			(212) 355-4449

(tables attached)

Page 3


			Table 1
EMERSON AND SUBSIDIARIES
CONSOLIDATED OPERATING RESULTS
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

	Quarter Ended Dec 31
	2022		2023

Net sales	$	3,373	$	4,117
Cost and expenses
Cost of sales	1,753		2,201
SG&A expenses	1,030		1,277


Other deductions, net	120		487
Interest expense, net	48		44
Interest income from related party1	—		(31)
Earnings from continuing operations before income taxes	422		139
Income taxes	98		7
Earnings from continuing operations	324		132
Discontinued operations, net of tax	2,002		—
Net earnings	2,326		132
Less: Noncontrolling interests in subsidiaries	(5)		(10)
Net earnings common stockholders	$	2,331	$	142

Earnings common stockholders
Earnings from continuing operations	$	329	$	142
Discontinued operations	2,002		—
Net earnings common stockholders	$	2,331	$	142

Diluted avg. shares outstanding	586.7		573.3

Diluted earnings per share common stockholders
Earnings from continuing operations	$	0.56	$	0.25
Discontinued operations	3.41		—
Diluted earnings per common share	$	3.97	$	0.25


	Quarter Ended Dec 31
	2022		2023
Other deductions, net
Amortization of intangibles	$	118	$	274
Restructuring costs	10		83

Other	(8)		130
Total	$	120	$	487

1 Represents interest on the Copeland note receivable

Page 4


			Table 2
EMERSON AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS, UNAUDITED)


	Sept 30, 2023		Dec 31, 2023
Assets
Cash and equivalents	$	8,051	$	2,076
Receivables, net	2,518		2,759
Inventories	2,006		2,432
Other current assets	1,244		1,399
Total current assets	13,819		8,666
Property, plant & equipment, net	2,363		2,701
Goodwill	14,480		17,983
Other intangible assets	6,263		11,270
Copeland note receivable and equity investment	3,255		3,253
Other	2,566		2,640
Total assets	$	42,746	$	46,513

Liabilities and equity
Short-term borrowings and current maturities of long-term debt	$	547	$	3,227
Accounts payable	1,275		1,234
Accrued expenses	3,210		3,304
Total current liabilities	5,032		7,765
Long-term debt	7,610		7,632
Other liabilities	3,506		4,561
Equity
Common stockholders' equity	20,689		20,674
Noncontrolling interests in subsidiaries	5,909		5,881
Total equity	26,598		26,555
Total liabilities and equity	$	42,746	$	46,513

Page 5


				Table 3
EMERSON AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS, UNAUDITED)

	Three Months Ended Dec 31
		2022		2023
Operating activities
Net earnings		$	2,326	$	132
Earnings from discontinued operations, net of tax		(2,002)		—
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		260		422
Stock compensation		102		74
Amortization of acquisition-related inventory step-up		—		231
Changes in operating working capital		(289)		(247)
Other, net		(95)		(168)
Cash from continuing operations		302		444
Cash from discontinued operations		116		(29)
Cash provided by operating activities		418		415

Investing activities
Capital expenditures		(59)		(77)
Purchases of businesses, net of cash and equivalents acquired		—		(8,339)
Proceeds from subordinated interest		15		—

Other, net		(23)		(37)
Cash from continuing operations		(67)		(8,453)
Cash from discontinued operations		2,953		1
Cash provided by (used in) investing activities		2,886		(8,452)

Financing activities
Net increase (decrease) in short-term borrowings		(539)		2,647



Payments of long-term debt		(9)		—
Dividends paid		(306)		(300)
Purchases of common stock		(2,000)		(175)
AspenTech purchases of common stock		—		(72)

Other, net		(41)		(45)


Cash provided by (used in) financing activities		(2,895)		2,055

Effect of exchange rate changes on cash and equivalents		58		7
Increase (decrease) in cash and equivalents		467		(5,975)
Beginning cash and equivalents		1,804		8,051
Ending cash and equivalents		$	2,271	$	2,076

Page 6


									Table 4
EMERSON AND SUBSIDIARIES
SEGMENT SALES AND EARNINGS
(DOLLARS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to supplement the Company's results of operations, including its segment earnings which are defined as earnings before interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA, and adjusted segment and total segment EBITA margin are measures used by management and may be useful for investors to evaluate the Company's segments' operational performance.


	Quarter Ended Dec 31
	2022		2023		Reported		Underlying
Sales
Final Control	$	862	$	940	9	%	9	%
Measurement & Analytical	749		947		26	%	28	%
Discrete Automation	618		613		(1)	%	(2)	%
Safety & Productivity	310		322		4	%	3	%
Intelligent Devices	$	2,539	$	2,822	11	%	11	%

Control Systems & Software	606		675		11	%	11	%
Test & Measurement	—		382		—	%	—	%
AspenTech	243		257		6	%	6	%
Software and Control	$	849	$	1,314	55	%	9	%

Eliminations	(15)		(19)
Total	$	3,373	$	4,117	22	%	10	%


Sales Growth by Geography
	Quarter Ended Dec 31
Americas	8	%
Europe	10	%
Asia, Middle East & Africa	15	%

Page 7


									Table 4 cont.


	Quarter Ended Dec 31						Quarter Ended Dec 31
	2022						2023
	As Reported (GAAP)			Adjusted EBITA (Non-GAAP)			As Reported (GAAP)			Adjusted EBITA (Non-GAAP)
Earnings
Final Control	$	158		$	184		$	194		$	223
Margins	18.4		%	21.4		%	20.6		%	23.6		%
Measurement & Analytical	175			181			235			258
Margins	23.4		%	24.1		%	24.9		%	27.3		%
Discrete Automation	121			129			97			116
Margins	19.6		%	21.0		%	15.8		%	18.9		%
Safety & Productivity	63			69			68			74
Margins	20.4		%	22.4		%	21.1		%	23.1		%
Intelligent Devices	$	517		$	563		$	594		$	671
Margins	20.4		%	22.2		%	21.0		%	23.8		%

Control Systems & Software	107			114			149			155
Margins	17.6		%	18.7		%	22.1		%	23.1		%
Test & Measurement	—			—			(78)			101
Margins	—		%	—		%	(20.4)		%	26.5		%
AspenTech	(33)			88			(35)			87
Margins	(13.6)		%	36.6		%	(13.7)		%	33.6		%
Software and Control	$	74		$	202		$	36		$	343
Margins	8.7		%	23.8		%	2.8		%	26.1		%

Corporate items and interest expense, net:
Stock compensation	(102)			(102)			(74)			(44)
Unallocated pension and postretirement costs	45			45			31			31
Corporate and other	(64)			(44)			(399)			(38)

Loss on Copeland equity method investment	—			—			(36)			—
Interest expense, net	(48)			—			(44)			—
Interest income from related party1	—			—			31			—
Pretax Earnings / Adjusted EBITA	$	422		$	664		$	139		$	963
Margins	12.5		%	19.7		%	3.4		%	23.4		%

Supplemental Total Segment Earnings:
Adjusted Total Segment EBITA				$	765					$	1,014
Margins				22.7		%				24.6		%

1 Represents interest on the Copeland note receivable.

Page 8


									Table 4 cont.


	Quarter Ended Dec 31				Quarter Ended Dec 31
	2022				2023
	Amortization of Intangibles1		Restructuring and Related Costs2		Amortization of Intangibles1		Restructuring and Related Costs2
Final Control	$	22	$	4	$	22	$	7
Measurement & Analytical	5		1		20		3
Discrete Automation	7		1		9		10
Safety & Productivity	6		—		6		—
Intelligent Devices	$	40	$	6	$	57	$	20

Control Systems & Software	6		1		5		1
Test & Measurement	—		—		139		40
AspenTech	121		—		122		—
Software and Control	$	127	$	1	$	266	$	41

Corporate	—		8		—		26		3
Total	$	167	$	15	$	323	$	87

1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended December 31, 2022 and 2023, respectively.
2 Restructuring and related costs includes $5 and $4 reported in cost of sales for the three months ended December 31, 2022 and 2023, respectively.
3 Corporate restructuring of $26 for the three months ended December 31, 2023 is comprised entirely of integration-related stock compensation expense attributable to NI.



	Quarter Ended Dec 31
Depreciation and Amortization	2022		2023
Final Control	$	45	$	40
Measurement & Analytical	30		40
Discrete Automation	21		22
Safety & Productivity	14		14
Intelligent Devices	110		116

Control Systems & Software	21		21
Test & Measurement	—		151
AspenTech	123		123
Software and Control	144		295

Corporate	6		11
Total	$	260	$	422

Page 9


									Table 5


EMERSON AND SUBSIDIARIES
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL
(DOLLARS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.


	Quarter Ended Dec 31
	2022		2023
Stock compensation (GAAP)	$	(102)	$	(74)
Integration-related stock compensation expense	—		30		1
Adjusted stock compensation (non-GAAP)	$	(102)	$	(44)


	Quarter Ended Dec 31
	2022		2023
Corporate and other (GAAP)	$	(64)	$	(399)
Corporate restructuring and related costs	8		—
Acquisition / divestiture costs	—		130
Amortization of acquisition-related inventory step-up	—		231
Russia business exit	47		—
AspenTech Micromine purchase price hedge	(35)		—
Adjusted corporate and other (non-GAAP)	$	(44)	$	(38)

1 Integration-related stock compensation expense relates to NI and includes $26 reported as restructuring costs.

Page 10


									Table 6
EMERSON AND SUBSIDIARIES
ADJUSTED EBITA & EPS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, gains or losses on the Copeland equity method investment, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, gains or losses on the Copeland equity method investment, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.


	Quarter Ended Dec 31
	2022			2023
Pretax earnings	$	422		$	139
Percent of sales	12.5		%	3.4		%
Interest expense, net	48			44
Interest income from related party1	—			(31)
Amortization of intangibles	167			323
Restructuring and related costs	15			87
Acquisition/divestiture fees and related costs	—			134
Amortization of acquisition-related inventory step-up	—			231
Loss on Copeland equity method investment	—			36
Russia business exit	47			—
AspenTech Micromine purchase price hedge	(35)			—
Adjusted EBITA	$	664		$	963
Percent of sales	19.7		%	23.4		%

	Quarter Ended Dec 31
	2022			2023
GAAP earnings from continuing operations per share	$	0.56		$	0.25
Amortization of intangibles	0.15			0.36
Restructuring and related costs	0.02			0.12
Acquisition/divestiture fees and related costs	—			0.17
Amortization of acquisition-related inventory step-up	—			0.38
Loss on Copeland equity method investment	—			0.04
Discrete taxes	—			(0.10)
Russia business exit	0.08			—
AspenTech Micromine purchase price hedge	(0.03)			—
Adjusted earnings from continuing operations per share	$	0.78		$	1.22
Less: AspenTech contribution to adjusted earnings per share				(0.07)
Adjusted earnings per share excluding AspenTech contribution				$	1.15

1 Represents interest on the Copeland note receivable

Page 11


Table 6 cont.


Quarter Ended December 31, 2023
	Pretax Earnings			Income Taxes		Earnings from Cont. Ops.		Non-Controlling Interests3		Net Earnings Common Stockholders		Diluted Earnings Per Share
As reported (GAAP)	$	139		$	7	$	132	$	(10)	$	142	$	0.25
Amortization of intangibles	323		1	74		249		41		208		0.36
Restructuring and related costs	87		2	18		69		—		69		0.12
Acquisition/divestiture fees and related costs	134			38		96		—		96		0.17
Amortization of acquisition-related inventory step-up	231			14		217		—		217		0.38
Loss on Copeland equity method investment	36			9		27		—		27		0.04
Discrete taxes	—			57		(57)		—		(57)		(0.10)
Adjusted (non-GAAP)	$	950		$	217	$	733	$	31	$	702	$	1.22
Interest expense, net	44
Interest income from related party4	(31)
Adjusted EBITA (non-GAAP)	$	963

1 Amortization of intangibles includes $49 reported in cost of sales.
2 Restructuring and related costs includes $4 reported in cost of sales.
3 Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.
4 Represents interest on the Copeland note receivable.

Page 12


Table 7
EMERSON AND SUBSIDIARIES
ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson currently owns approximately 57 percent of the common shares outstanding of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 43 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income and stock compensation.


Quarter Ended December 31, 2023
	Pretax Earnings			Income Taxes (Benefit)		Earnings from Cont. Ops.		Non-Controlling Interests4		Net Earnings Common Stockholders		Diluted Earnings Per Share
Standalone reporting (GAAP)	$	(37)	1	$	(15)	$	(22)
Other	(2)			—		(2)
Reported in Emerson consolidation (GAAP)	(39)			(15)		(24)		(10)		(14)		$	(0.02)
Adjustments:
Amortization of intangibles	122		2	27		95		41		54		0.09
Adjusted (Non-GAAP)	$	83		$	12	$	71	$	31	$	40	$	0.07
Interest income	(12)		3
Stock compensation	16		3
Adjusted segment EBITA (non-GAAP)	$	87

Reconciliation to Segment EBIT
Pre-tax earnings	$	(39)
Interest income	(12)		3
Stock compensation	16		3
Segment EBIT (GAAP)	$	(35)
Amortization of intangibles	122		2
Adjusted segment EBITA (non-GAAP)	$	87

1 Amount reflects AspenTech's pretax earnings for the three months ended December 31, 2023 as reported in its quarterly earnings release 8-K.
2 Amortization of intangibles includes $49 reported in cost of sales.
3 Reported in Emerson corporate line items.
4 Represents the non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.

Page 13

Reconciliations of Non-GAAP Financial Measures & Other

Table 8

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See tables 4 through 7 for additional non-GAAP reconciliations.


2024 Q1 Underlying Sales Change	Reported		(Favorable) / Unfavorable FX		(Acquisitions)		Divestitures		Underlying
Final Control	9	%	(1)	%	—	%	1	%	9	%
Measurement & Analytical	26	%	—	%	—	%	2	%	28	%
Discrete Automation	(1)	%	(1)	%	—	%	—	%	(2)	%
Safety & Productivity	4	%	(1)	%	—	%	—	%	3	%
Intelligent Devices	11	%	(1)	%	—	%	1	%	11	%
Control Systems & Software	11	%	(1)	%	—	%	1	%	11	%
Test & Measurement	—	%	—	%	—	%	—	%	—	%
AspenTech	6	%	—	%	—	%	—	%	6	%
Software and Control	55	%	(1)	%	(46)	%	1	%	9	%
Emerson	22	%	(1)	%	(12)	%	1	%	10	%


Underlying Growth Guidance	2024 Q2 Guidance	2024 Guidance
Reported (GAAP)	12.5% - 14.5%	14.5% - 17%
(Favorable) / Unfavorable FX	~- pts	~- pts
(Acquisitions)	~(9) pts	(10.0) - (10.5) pts
Divestitures	~- pts	~- pts
Underlying (non-GAAP)	3.5% - 5.5%	4.5% - 6.5%


2023 Q1 Adjusted Segment EBITA	EBIT		EBIT Margin		Amortization of Intangibles		Restructuring and Related Costs		Adjusted Segment EBITA		Adjusted Segment EBITA Margin
Final Control	$	158	18.4	%	$	22	$	4	$	184	21.4	%
Measurement & Analytical	175		23.4	%	5		1		181		24.1	%
Discrete Automation	121		19.6	%	7		1		129		21.0	%
Safety & Productivity	63		20.4	%	6		—		69		22.4	%
Intelligent Devices	$	517	20.4	%	$	40	$	6	$	563	22.2	%
Control Systems & Software	107		17.6	%	6		1		114		18.7	%
Test & Measurement	—		—	%	—		—		—		—	%
AspenTech	(33)		(13.6)	%	121		—		88		36.6	%
Software and Control	$	74	8.7	%	$	127	$	1	$	202	23.8	%


2024 Q1 Adjusted Segment EBITA	EBIT		EBIT Margin		Amortization of Intangibles		Restructuring and Related Costs		Adjusted Segment EBITA		Adjusted Segment EBITA Margin
Final Control	$	194	20.6	%	$	22	$	7	$	223	23.6	%
Measurement & Analytical	235		24.9	%	20		3		258		27.3	%
Discrete Automation	97		15.8	%	9		10		116		18.9	%
Safety & Productivity	68		21.1	%	6		—		74		23.1	%
Intelligent Devices	$	594	21.0	%	$	57	$	20	$	671	23.8	%
Control Systems & Software	149		22.1	%	5		1		155		23.1	%
Test & Measurement	(78)		(20.4)	%	139		40		101		26.5	%
AspenTech	(35)		(13.7)	%	122		—		87		33.6	%
Software and Control	$	36	2.8	%	$	266	$	41	$	343	26.1	%

Page 14


Total Adjusted Segment EBITA	2023 Q1			2024 Q1
Pretax earnings (GAAP)	$	422		$	139
Margin	12.5		%	3.4		%
Corporate items and interest expense, net	169			491
Amortization of intangibles	167			323
Restructuring and related costs	7			61
Adjusted segment EBITA (non-GAAP)	$	765		$	1,014
Margin	22.7		%	24.6		%


Free Cash Flow	2023 Q1		2024 Q1		2024E ($ in billions)
Operating cash flow (GAAP)	$	302	$	444	$3.0 - $3.1
Capital expenditures	(59)		(77)		~(0.4)
Free cash flow (non-GAAP)	$	243	$	367	$2.6 - $2.7

Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures.

Note 2: All fiscal year 2024E figures are approximate, except where range is given.

Cover Page	Feb. 07, 2024
Entity Information [Line Items]
Entity Central Index Key	0000032604
Amendment Flag	false
Document Type	8-K
Document Period End Date	Feb. 07, 2024
Entity Registrant Name	Emerson Electric Co.
Entity Incorporation, State or Country Code	MO
Entity File Number	1-278
Entity Tax Identification Number	43-0259330
Entity Address, Address Line One	8000 West Florissant Avenue
Entity Address, City or Town	St. Louis,
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63136
City Area Code	314
Local Phone Number	553-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
NEW YORK STOCK EXCHANGE, INC. [Member] \| Common Stock of $0.50 par value per share [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock of $0.50 par value per share
Trading Symbol	EMR
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. [Member] \| 0.375% Notes due 2024 [Member]
Entity Information [Line Items]
Title of 12(b) Security	0.375% Notes due 2024
Trading Symbol	EMR 24
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. [Member] \| 1.250% Notes due 2025 [Member]
Entity Information [Line Items]
Title of 12(b) Security	1.250% Notes due 2025
Trading Symbol	EMR 25A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. [Member] \| 2.000% Notes due 2029 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.000% Notes due 2029
Trading Symbol	EMR 29
Security Exchange Name	NYSE
CHICAGO STOCK EXCHANGE, INC [Member] \| Common Stock of $0.50 par value per share [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock of $0.50 par value per share
Trading Symbol	EMR
Security Exchange Name	CHX

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