ST. LOUIS--(BUSINESS WIRE)--Emerson (NYSE: EMR) today confirmed receipt of a letter to Emerson’s Board of Directors and presentation from D.E. Shaw.
Emerson has a strong track record of operational excellence and actions to enhance shareholder value. Since completing its repositioning in 2016, Emerson has grown both of its platforms at above market growth rates, increased its consolidated revenue at an 8% compounded annual growth rate, generated operating cash flow of more than $8 billion, and three-year TSR of 47%. Over the last five years, Emerson has divested over $6 billion in annual revenue, including Network Power, Control Techniques, and Leroy Somer. Emerson also has a long history of returning capital to shareholders, including $10 billion in share repurchases over the past 10 years and 62 consecutive years of dividend increases.
On Oct. 1, Emerson announced that it is conducting a comprehensive review of operational, capital allocation and portfolio initiatives to enhance shareholder value and position the Company for both near- and long-term success. The evaluation is being led by Emerson’s Board, supported by a leading consulting firm and legal and financial advisors.
Chairman and Chief Executive Officer David N. Farr said: “Emerson was one of the first industrial companies to address concerning trends in the macroeconomic environment, and we’ve announced increased restructuring actions since May to proactively manage our cost structure. The Board of Directors has been focused on this issue over the course of the year and concluded that a thorough review will inform decisions that drive strong value creation for our shareholders in what we expect to be an uncertain environment.”
“Emerson maintains an open dialogue with all shareholders and welcomes their input on potential opportunities to enhance shareholder value,” said Clemens A.H. Boersig, Lead Independent Director. “We will carefully evaluate D.E. Shaw’s proposals as we continue to assess value-creation opportunities.”
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a global technology and engineering company providing innovative solutions for customers in industrial, commercial and residential markets. Our Automation Solutions business helps process, hybrid and discrete manufacturers maximize production, protect personnel and the environment while optimizing their energy and operating costs. Our Commercial & Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency and create sustainable infrastructure. 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 outcome and ultimate impact of the review referred to herein, as well as economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.