Emerson

Emerson offers technologies combined with engineering developments for industrial, commercial and commercial businesses. The company's portfolio includes: power systems, process control, automation of industrial operations, climatic equipment, as well as household appliances and tools.

Structure

As of early November 2017, Emerson's business is divided between two main divisions:

• Automation Solutions. Offers measuring equipment, monitoring and control equipment, control systems, flow measurement solutions, equipment for discrete and industrial production, service support services for industrial enterprises;

• Commercial & Residential Solutions. It offers automation and power generation technologies, heating, air conditioning and cooling systems for use in the residential sector, in commercial and industrial facilities.

Performance indicators

2022: Loss of $162 million in the quarter due to withdrawal from the Russian market

Emerson was forced to write off $162 million due to the cessation of work in the Russian market. The company announced this in its statements for the third financial quarter, which was closed at the end of June 2022 calendar year.

Historically, Emerson's sales in Russia were primarily in the automation solutions segment and accounted for approximately 1.5% of annual revenue. In the third quarter of fiscal 2022, the company recognized a pre-tax loss of $162 million related to the termination of operations in Russia... Emerson is committed to an orderly transfer of these assets and will support its employees in the process, the company said in a statement.

The Company recognized a loss related to the termination of operations in Russia

It is noted that the volume of the portfolio of canceled orders from Russia in the "industrial automation" segment is $132 million. At the same time, the total portfolio of orders in this division amounted to $6.2 billion.

In April-June 2022, Emerson recorded a net profit of $921 million, while for the same period in 2021 it amounted to $627 million. Profit growth is driven by strong performance in the industrial automation division, which in turn is due to the fact that companies are upgrading their assembly lines to compensate for the lack of labor using robots and other equipment.

Emerson's quarterly sales reached $5 billion, up 7% year-on-year. The company lost about $100 million due to lockdowns in China, $80 million due to problems with the supply of electronic components.

The company worsened its forecast for revenue growth in fiscal 2022 - from 8-10% to 7-8% - and explained this influence of several factors, including the curtailment of business in Russia and the consequences of the COVID-19 coronavirus pandemic.^[1]

2017: Revenue growth driven by Chinese market

In fiscal 2017, which ended on September 30, 2017, Emerson's revenue reached $15.3 billion, an increase of 5% compared to the previous year. At the same time, if we exclude the impact of exchange rates, then sales increased by 1%, and excluding asset acquisitions - by 4%.

The company notes that revenue growth was the result of improved global economic conditions, stabilization of oil prices and increased demand for industrial solutions in emerging markets.

Emerson's annual net profit decreased by 7%, amounting to $1.55 billion.

Emerson's net profit in 2017 fiscal year decreased by 7%

The report also suggests that the fastest growing market for Emerson is China, which saw revenues rise 15% in fiscal 2017. Revenue in Asia as a whole increased by 6%. In the American market, the vendor recorded sales growth of 2%. In Latin America, Canada and Europe, there was a decline of 12%, 3% and 1%, respectively.

Revenue from Emerson Automation Solutions (measuring equipment, control and control equipment, control systems, flow measurement solutions, equipment for discrete and industrial production) amounted to $9.4 billion, increasing from $9 billion in fiscal year 2016. This rise was facilitated by major projects in North America.

In the Commercial & Residential Solutions division (automation and power generation technologies, heating, air conditioning and cooling systems for use in the residential sector, at commercial and industrial facilities), the annual turnover increased from 1.46 to $1.52 billion.

Commercial & Residential Solutions saw the highest sales growth in the Middle East and Africa (21%) and China (18%).^[2]

Emerson in Russia

Emerson entered the Russian market in 2004, starting to invest and cooperate with ZAO Industrial Group, Metran located in. Chelyabinsk Subsequently, Emerson fully bought out the enterprise.

2022

Sale of Russian business to local top managers

Russian top managers buy business in the Russian Federation from Emerson. The American manufacturer of industrial equipment announced this on September 27, 2022.

{{quote 'The transaction will be subject to regulatory and government approval and other customary closing conditions. Emerson will work closely with local management in Russia to ensure a smooth transition for employees during this process, the statement said. }}

Russian top managers buy business in the Russian Federation from Emerson

The perimeter of the transaction includes the production enterprise Metran"" and Emerson LLC, which deals with service and sales issues. Financial and other terms of the contract are not disclosed. In particular, it is not known which people bought Emerson's Russian assets.

According to the Unified State Register of Legal Entities, by September 27, 2022, Anton Druzhinin is the general director of Metran Industrial Group JSC from January 2021. He also owns 50% in the authorized capital of Metran Holding LLC (consulting on commercial activities and management) and Metran Project LLC (trading in wholesale production electrical equipment, machines, equipment and materials). Both LLCs were registered on August 12, 2022.

The second owner of 50% shares in Metran Holding and Metran Project is Nikolai Shestakov, general director of Emerson LLC (Moscow, wholesale trade in production electrical equipment, machines, equipment and materials), Interfax notes.

By the end of September 2022, Metran has a separate division in St. Petersburg, representative offices in the Irkutsk region, Perm Territory, as well as a subsidiary of Metran-Export JSC in Chelyabinsk. The company produces measuring instruments - sensors of pressure, temperature, level, flow rate, communication means, solutions for metrological support of enterprises.^[3]

Withdrawal from the Russian market

In early May 2022, Emerson announced its withdrawal from the Russian market. As part of this process, the manufacturer of industrial automation systems intends to sell a subsidiary of Metran.

According to Lal Karsanbhai, President and CEO of Emerson, the company plans to organize the transfer of Russian assets and will support its employees in the Russian Federation in connection with the departure from the local market. Emerson also stopped all new investments in Russia in pursuance of sanctions.

Industrial automation systems manufacturer Emerson is looking for a buyer of Russian business

By the beginning of May 2022, the Emerson group includes more than 200 enterprises around the world, including Metran.

The plant of the Metran industrial group, which manufactures control valves, control systems, telemechanics controllers, pressure sensors and other equipment, is located in Chelyabinsk. Control valves, control systems, telemechanics controllers, pressure sensors and other equipment are produced there. By May 2022, the company has about 1,100 employees, according to its website. The company has a separate division in St. Petersburg, representative offices in the Irkutsk region, Perm Territory, as well as a subsidiary of Metran-Export JSC in Chelyabinsk. Emerson itself is engaged in the automation of production, technological processes and distribution systems in the chemical, oil and gas, oil refining, energy, water treatment, food and other industries.

Some foreign companies, including Emerson, began to suspend their activities in Russia and withdraw from joint ventures with Russian companies after the start of the Russian special operation in Ukraine on February 24, 2022, which entailed large-scale economic sanctions from Western countries.^[4]

2019: Revenue growth by 9% to RUB 10.39 billion

At the end of 2019, Emerson (Emerson LLC) took 21st place in the TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 10,391,979 thousand rubles, which is 9% higher than in 2018.

2018: Revenue - RUB 9.5 billion

Emerson's revenue (Emerson LLC) for 2018 amounted to 9,539,258 thousand rubles.

2015: Launch of production sites in Russia

The company's production sites in the region were launched in June 2015.

History

2022: Whirlpool buys InSinkErator from Emerson for $3bn

On August 8, 2022, Whirlpool said it was buying InSinkErator, a waste disposal equipment and hot water dispensers company, from Emerson Electric for $3 billion. The deal is expected to close in the fourth quarter of 2022. Read more here.

2021: Gaining control of Aspen Technology in $11bn deal

In October 2021, a deal was announced, under which Emerson will transfer its software division to Aspen Technology. As the parties to the agreement emphasize, it is about joining one business to another, and not about buying and selling assets. Read more here.

2020

Emerson buys Open Systems International

In early September 2020, Emerson announced the acquisition of OSI for $1.6 billion. The company's management believes that digitalization is critical to improving the reliability of the power grid, because the inclusion of clean and renewable energy sources, such as solar and wind, requires accurate and effective coordination. Emerson hopes to combine its advanced manufacturing technologies with OSI power distribution software and thereby provide customers with the ability to continuously monitor, control and optimize processes in real time. Read more here.

Purchase of Verdant Hotel Energy Management Systems Developer

In March 2020, Emerson announced the acquisition of Verdant, but the company did not disclose financial and other aspects of the agreement. Thanks to this transaction, the buyer will be able to strengthen his division developing energy solutions for commercial and residential buildings. Read more here.

2010: Sale of LANdesk to Thomas Bravo Foundation

Emerson decided that the specialization of LANdesk Software, which was bought with Avocent, was not consistent with their strategic plans. In September 2010, an agreement in principle was announced with the investment company Thomas Bravo, which acquired LANDesk Software. Financial details were not disclosed.

2009: Avocent Company Purchase

In 2009, Emerson Electric acquired Avocent, along with LANDesk Software, which it owns.

Emerson's sales for fiscal year 2009 were $20.9 billion.

Notes