Emerson Elec Co Stock Price, News & Analysis

Emerson (NYSE: EMR) has finalized the sale of its InSinkErator® division to Whirlpool Corporation (NYSE: WHR) for $3.0 billion. InSinkErator is the largest manufacturer of food waste disposers and instant hot water dispensers globally, founded in 1938 and acquired by Emerson in 1968. The acquisition enables Whirlpool to enhance InSinkErator's legacy and growth potential. Emerson focuses on providing innovative solutions in essential industries, while Whirlpool aims to be the leading global kitchen and laundry company.

Whirlpool Corporation (NYSE: WHR) has completed its acquisition of InSinkErator from Emerson (NYSE: EMR), the leading manufacturer of food waste disposers and instant hot water dispensers. The acquisition aims to enhance Whirlpool's portfolio and is expected to immediately boost margins, contributing approximately $1.25 EPS in fiscal 2023. InSinkErator will function as a separate entity under Whirlpool's North America Region while maintaining its headquarters in Mount Pleasant, Wisconsin. The company anticipates revenue growth through expanded market presence and leveraging InSinkErator's established brand.

Emerson reports Q4 net sales of $5.4 billion, a rise of 8% year-over-year, with underlying sales up 12%. Full-year net sales reached $19.6 billion, also up 8%, while GAAP EPS increased by 12% to $1.24 for Q4 and surged 42% to $5.41 for the full year. Operating cash flow for Q4 was $1.2 billion, a 42% increase. The company announced the closure of its InSinkErator divestiture and plans to report Climate Technologies as a discontinuing operation starting in 2023. Projected earnings from these operations for 2023 are expected to be between $10 billion and $11 billion.

Emerson has agreed to sell a majority stake in its Climate Technologies business to Blackstone for $14 billion, receiving approximately $9.5 billion in upfront cash. The deal retains Emerson a 45% stake in a new joint venture focused on HVAC and refrigeration, expected to generate $5 billion in sales. This strategic move aims to position Emerson as a pure-play automation company with higher growth potential, leveraging its portfolio to meet sustainability goals. The transaction is set to close in early 2023, pending regulatory approval.

Emerson (NYSE: EMR) is set to announce its fourth quarter and full year 2022 results on October 31, 2022, before market opening. Senior management will host an investor conference call at 8 a.m. Eastern Time. Interested parties can access the live call and presentation slides on Emerson’s website. The results will shed light on the company’s financial performance in a pivotal year, and a replay will be available for three months after the event.

Southern California Gas has partnered with Emerson to showcase its innovative residential microgrid, the [H2] Innovation Experience, in Southern California. This project, one of the first of its kind in the U.S., integrates renewable hydrogen production through solar energy, enabling carbon-free gas utilization in home energy systems. The setup includes a solar array, energy storage, and an electrolyzer. This initiative aligns with California's goals for net-zero emissions, supporting sustainable power demand and highlighting advanced automation technologies.

Emerson (NYSE: EMR) presented its vision for a software-defined automation architecture at the Emerson Exchange in Austin, Texas, aimed at transforming modern manufacturing. This next-generation framework promises 'boundless automation' by facilitating seamless data management across operational technology (OT) and information technology (IT) environments. By leveraging its Plantweb™ digital ecosystem and recent expansion with AspenTech, Emerson seeks to optimize operational performance, address safety, productivity, and sustainability challenges in the industrial sector.

Emerson (NYSE: EMR) has announced the evolution of its Plantweb™ digital ecosystem, integrating AspenTech's (NASDAQ: AZPN) asset optimization software. This collaboration aims to enhance industrial automation by enabling manufacturers to optimize operations through advanced software and AI technologies. Emerson's Plantweb ecosystem provides tools for sensing, decision-making, and controlling plant operations, helping companies achieve greater sustainability and productivity. This development positions Emerson as a leader in the industrial digital transformation landscape.