Business Description

Emerson Electric Co. is a technology and engineering firm that provides solutions for residential, commercial, and industrial markets around the world. The Emerson Electric Manufacturing Company was the original name of the company. In 2000, Emerson Electric Co. took over that title. Emerson Electric Co. was established in 1890. It is headquartered in St. Louis Missouri.

Automation Solutions is the company’s segment. It offers software, industry service, measurement and analytical instrumentation, process control systems, valves, actuators and regulators, solutions, and solutions, as well as digital plant solutions. This segment provides services for oil and gas, chemical, power generation, and pharmaceuticals. It also serves the markets for food and beverage, paper, metal, mining, automotive, pulp, and municipal water supply markets.

The segment Commercial & Residential Solutions provides services to the climate control industry. These include residential heating and cooling as well as industrial refrigeration and commercial air conditioning. This segment provides thermostats, monitoring equipment, electronic controls, and compressors for electric heating systems. It also supplies gas valves for furnaces. This segment also provides precision system diagnostics, flow controls, and controls that allow for precise temperature management. This section also offers tools for homeowners and professionals; as well as appliance solutions.

Key Financials

Revenue (US$ Mn):

• The annual revenue generated by Emerson Electric Co. in 2021 was US$ 18,236 Mn
• At a -8.64% decrease from , Emerson Electric Co.’s annual revenue of US$ 16,785 Mn was indexed in 2020
• Emerson Electric Co. generated total revenue of US$ 18,372 Mn in 2019

Operating Income (US$ Mn):

• The operating income generated by Emerson Electric Co. in 2021 was US$ 3,600 Mn
• At a 2.56% increase from , Emerson Electric Co.’s operating income of US$ 3,083 Mn was indexed in 2020
• Emerson Electric Co. generated an operating income of US$ 3,006 Mn in 2019

Net Income (US$ Mn):

• Emerson Electric Co.’s net income for 2021 was US$ 2,912 Mn, a 24.71% increase from the 2020
• From 2019’s net incomes, Emerson Electric Co. registered a 1.26% increase in 2020, amounting to US$ 2,335 Mn
• A net income of US$ 2,306 Mn was generated in 2019 by Emerson Electric Co.

Operating Margin %:

• The operating margin generated by Emerson Electric Co. in 2021 was 20%
• At a 12.27% increase from , Emerson Electric Co.’s operating margin of 18% was indexed in 2020
• Emerson Electric Co. generated an operating margin of 16% in 2019

SWOT Analysis

Strengths

Diversified Product Portfolio

Emerson offers a diverse product range. Emerson offers process management and industrial automation solutions for industrial, commercial, and consumer markets. It offers software, measurement and analytic instrumentation, valves actuators, regulators, and services that optimize assets for power plants. Emerson provides products and services to the climate control industry.

These include residential heating and cooling as well as commercial air conditioning and industrial refrigeration. It offers industrial motors, drives, power generating alternators, and fluid controls. They also offer electrical distribution devices, fluid controls, fluid joining equipment, precision cleaning equipment, and power transmission products. These products are used in many manufacturing operations to provide integrated manufacturing solutions.

It also offers tools for homeowners and professionals, commercial and home storage systems, as well as appliance solutions. Emerson’s diverse product portfolio allows it to appeal to a wide range of customers worldwide. A diverse Revenue (US$Mn) base is also a strength of the company. The company has three reportable segments: Automation Solutions and Climate Technologies. Tools and Home Products is the third.

The Automation Solutions segment made up 61.7% (US$Mn) of the company’s total revenue in FY2017. Climate Technologies was second at 27.6% and Tools and Home Products at 10.8%. Emerson’s well-balanced Revenue base (US$Mn) and diversified product portfolio allow it to mitigate business risks and respond effectively to market challenges and opportunities.