Emerson Electric IB CIA II

8/8/2019 Emerson Electric IB CIA II

http://slidepdf.com/reader/full/emerson-electric-ib-cia-ii 1/28

2009

Agrim Khetan

O8D1273

7/13/2009

International Business CIA II



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



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 Industrial Automation,

y Network Power,



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)



2. Business Diversification / Segments

Emerson pr oducts, solutions and services go to market under eight business platforms:


y Industrial Automation,y Network Power,



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.



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.



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.



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.



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.



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



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



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.



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.



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



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



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



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



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.



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



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.



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



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.



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.



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.



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."



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.



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.



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



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

Emerson Electric IB CIA II

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