Emerson Comments on D.E. Shaw’s Presentation and Letter to Board
October 15 2019 - 10:40AM
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.”
About Emerson
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191015005788/en/
Investor Contact: Tim Reeves (314) 553-2197
Timothy.reeves@emerson.com Media Contacts: Casey Murphy (314)
982-6220 casey.murphy@fleishman.com George Sard/Jared Levy/David
Millar (212) 687-8080 Emerson-SVC@sardverb.com
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