10.02.19
Emerson announced that it is conducting a comprehensive review of the company’s operational, capital allocation and portfolio initiatives to enhance shareholder value and position the company for both near- and long-term success. Emerson’s board will lead the evaluation, which will be supported by a leading consulting firm and independent legal and financial advisors.
“Following discussions with our coard and management team over the course of this year, we have concluded that a thorough review of our cost structure, capital allocation, and portfolio will inform decisions that drive strong value creation for our shareholders in what we expect to be an uncertain environment,” said David N. Farr, chairman and CEO. “While we remain positive on Emerson’s end markets, we anticipate a challenging geopolitical and economic landscape over the next couple of years.”
Emerson has undertaken three major repositioning efforts since 2000. Most recently, in 2015, Emerson announced and successfully executed a strategic repositioning of the company, divesting almost a third of 2014 sales and narrowing its focus from five platforms to two.
Emerson’s commitment to shareholder value creation is evident in its track record of returning capital to shareholders, which is targeted at 50% to 60% of operating cash flow. Over the last 10 years, Emerson has returned $21 billion to shareholders, including share repurchases of $10 billion – retiring more than 20% of share capital. The company is committed to continuing to increase its dividend, which it has done for 62 consecutive years.
“Following discussions with our coard and management team over the course of this year, we have concluded that a thorough review of our cost structure, capital allocation, and portfolio will inform decisions that drive strong value creation for our shareholders in what we expect to be an uncertain environment,” said David N. Farr, chairman and CEO. “While we remain positive on Emerson’s end markets, we anticipate a challenging geopolitical and economic landscape over the next couple of years.”
Emerson has undertaken three major repositioning efforts since 2000. Most recently, in 2015, Emerson announced and successfully executed a strategic repositioning of the company, divesting almost a third of 2014 sales and narrowing its focus from five platforms to two.
Emerson’s commitment to shareholder value creation is evident in its track record of returning capital to shareholders, which is targeted at 50% to 60% of operating cash flow. Over the last 10 years, Emerson has returned $21 billion to shareholders, including share repurchases of $10 billion – retiring more than 20% of share capital. The company is committed to continuing to increase its dividend, which it has done for 62 consecutive years.
