Profile: Emerson Electric Co. (EMR)

Emerson Electric Co. (Emerson), incorporated in 1890, is a diversified global technology company. The Company is engaged in designing, designing and supplying product technology and delivering engineering services in a range of industrial, commercial and consumer markets globally. The Company operates in five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools. The Process Management segment provides measurement, control and diagnostic capabilities for automated industrial processes producing items, such as foods, fuels, medicines and power. The Industrial Automation segment is engaged in bringing integrated manufacturing solutions to industries worldwide. The Network Power segment is engaged in providing power and environmental conditioning to help keep the telecommunication systems, data networks and critical business applications continuously operating. The Climate Technologies segment is engaged in enhancing household and commercial comfort, as well as food safety and energy efficiency through air-conditioning and refrigeration technology. The Company’s Appliance and Tools segment is engaged in providing designed motors for a range of applications, appliances and integrated appliance solutions.

In December 2009, the Company acquired Avocent. In January 2010, the Company announced the combination of its Aperture Technologies Inc (Aperture) and Avocent businesses into a new division. The new division is part of Emerson Network Power. The unit combines Avocent’s management systems division, which offers access and control of the physical aspects of network devices and servers, with Aperture’s infrastructure software for a portfolio of data center infrastructure management solutions.

Process Management

The Process Management segment offers customers product technology, as well as engineering and project management services for precision control, monitoring and asset optimization of plants that produce power or that process or treat items, such as oil, natural gas and petrochemicals; food and beverages; pulp and paper; pharmaceuticals; and municipal water supplies. This range of products and services helps customers optimize their process plant capabilities in the areas of plant safety and reliability, and output.

Emerson’s Process Management systems and software control plant processes by collecting and analyzing information from measurement devices in the plant, and by using that information to adjust valves, pumps, motors, drives and other control hardware in the plant. Its process control systems can be extended wirelessly to support a mobile workforce with handheld tools/communicators, provide site-wide location tracking of people and assets, enable video monitoring and communicate with wireless field devices, increasing the information available to operations.

Measurement instrumentation measures the physical properties of liquids or gases in a process stream, such as pressure, temperature, level, or rate and amount of flow, and communicates this information to the control system. Measurement technologies provided by Emerson include Coriolis direct mass flow, magnetic flow, vortex flow, ultrasonic flow, differential pressure, ultralow-flow fluid measurement, temperature sensors and radar based tank gauging. The Company’s measurement products also are used in custody transfer applications, such as the transfer of gasoline from a storage tank to a tanker truck, where precise metering of the amount of fluid transferred helps ensure accurate asset management. Complementary products include onshore and subsea multi-phase meters, wetgas meters, downhold gauges and corrosion/erosion instruments.

Analytical instrumentation analyzes the chemical composition of process fluids and emissions to improve quality and efficiency, as well as environmental compliance. Emerson’s analytical technologies include process gas chromatographs, in-situ oxygen analyzers, infrared gas and process fluid analyzers, combustion analyzers and systems, and analyzers that measure phosphates (pH), conductivity and water quality. Emerson also provides these same technologies with wireless communication capability. This allows customers to monitor processes or equipment that were previously not measurable (remote, moving/rotating) or not economical to measure due to the cost and difficulty of running wires in industrial process plants.

Emerson provides sliding stem valves, rotary valves, butterfly valves and related valve actuators and controllers. It also provides a line of industrial and residential regulators, whose function is to reduce the pressure of fluids, such as natural gas and liquid petroleum gas for transfer from high-pressure supply lines to lower pressure systems.

Emerson’s PlantWeb digital plant architecture combines the technologies described above along with the intelligent plant devices (valves and measurement instruments that have advanced diagnostic capabilities), open communication standards (non-proprietary wired and wireless digital protocols allowing the plant devices and the control system to talk with one another) and integrated modular software, not only to control the process better but also to collect and analyze valuable information about plant assets and processes. This capability gives customers the ability to detect or predict changes in equipment and process performance and the impact they can have on plant operations. The PlantWeb architecture furnishes a platform to improve asset management and standards compliance, and to reduce startup, operations and maintenance costs. The Company’s process automation and asset optimization service centers serve industries, such as oil and gas, pulp and paper, chemical, power, food and beverage, and life sciences.

Industrial Automation

The Industrial Automation segment provides integrated manufacturing solutions to the customers at the source of manufacturing their own products. The products include motors, transmissions, alternators, fluid controls and materials joining equipment.

Emerson provides a range of drives and electric motors that are used in a range of manufacturing operations and products, from production assembly lines to escalators in shopping malls or supermarket checkout stations. Products in this category include alternating current (AC) and direct current (DC) electronic variable speed drives, servo motors, pump motors, drive control systems, integral horsepower motors (1 horsepower (HP) and above), fractional horsepower motors (less than 1 HP) and gear drives.

Emerson’s power transmission products include belt and chain drives, helical and worm gearing, gear motors, motor sheaves, pulleys, mounted and unmounted bearings, couplings, chains and sprockets. They are used to transmit power mechanically in a range of manufacturing and material handling operations and products. The Company provides both standard and customized automation and power transmission solutions to its customers.

Emerson provides alternators (low, medium and high voltage) for use in diesel or gas powered generator sets, as well as high frequency alternators, AC motor/generator sets, traction generators and wind power generators. The products in the fluid power and fluid control category includes control and power the flow of fluids (liquids and gases) in manufacturing operations such as automobile assembly, food processing, textile manufacturing and petrochemical processing. They include solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, and pressure, vacuum and temperature switches.

Emerson supplies both plastics joining technologies and equipment, and metal welding and joining processes to the manufacturing customer base, including automotive, medical devices and toys. It also provides precision cleaning and liquid processing solutions to industrial and commercial manufacturers. The products include ultrasonic joining and cleaning equipment, linear and orbital vibration welding equipment, systems for hot plate welding, spin welding, and laser welding, and aqueous, semi-aqueous and vapor cleaning systems.

Emerson’s majority-owned EGS Electrical Group joint venture with SPX Corporation manufactures a range of components for current- and non-current-carrying electrical distribution devices. These products include conduit and cable fittings, plugs and receptacles, industrial lighting, and enclosures and controls. Products in this category are used in hazardous, industrial, commercial and construction environments, such as oil and gas drilling and production sites, pulp and paper mills and petrochemical plants.

Network Power

Emerson’s Network Power segment designs, manufactures, installs and maintains products providing grid to chip electric power conditioning, power reliability and environmental control for telecommunications networks, data centers and other critical applications. The products in this segment include power systems, embedded power supplies, precision cooling and inbound power systems, along with round the clock service.

Emerson supplies uninterruptible AC and DC power systems, which provide reliable, conditioned power to telecommunication networks, data centers and other critical equipment in the event of a blackout or line surges and spikes. Power Systems’ products range from stand-alone units to complete systems incorporating rectifiers, distribution units, surge protection, batteries and system supervision.

Embedded power supplies are installed by original equipment manufacturers to convert or condition power for microprocessors and peripherals in a wide range of telecommunication, health care, computer and industrial applications using standard or custom AC/DC or DC/DC designs. They are also used in consumer products, in the form of chargers for mobile phones and power adaptors for ink jet printers.

Embedded Computing designs and develops embedded computer systems for original equipment manufacturers and systems integrators serving telecommunications, defense, aerospace, medical and industrial automation end markets. Products range from communication platforms, blades and modules to enabling software and professional services.

Emerson’s precision cooling products provide temperature and humidity control for computers, telecommunications and other sensitive equipment. These products range from 14,000 to 4 million British thermal units (BTUs) in capacity and are available in up flow, down flow and overhead configurations.

Emerson inbound power technology provides reliable power systems which automatically transfer critical application loads from a utility to emergency backup generators in the event of a blackout or brownout. Products include automatic transfer switches, paralleling and synchronizing gear and related distribution equipment and control systems.

Emerson’s connectivity products serve the needs of the wireless communications, telephony and data network, community access television (CATV), defense, security systems and health care industries and other industrial customers globally with a range of radio frequency, microwave and fiber optic interconnect components and assemblies.

Climate Technologies

The Climate Technologies segment provides products and services for all areas of the climate control industry, including residential, commercial and industrial heating and air conditioning, and commercial refrigeration. This segment also digitally controls and remotely monitors refrigeration units in grocery stores and other food distribution outlets.

Emerson provides a range of heating and air-conditioning products, which include reciprocating and scroll air-conditioning compressors, including residential scroll compressor with two stages of cooling capacity, which runs at full capacity only during the hottest time periods; standard and programmable thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; nitride ignition systems for furnaces; sensors and thermistors for home appliances, and temperature sensors and controls.

The Company’s technology is incorporated into equipment to refrigerate food and beverages in supermarkets, convenience stores, food service operations and refrigerated trucks and transport containers. The refrigeration products are also used in industrial applications, including medical applications, food processing and cold storage. These products include compressors; precision flow controls; system diagnostics and controls that provide precise temperature management; and environmental control systems.

Appliance and Tools

Emerson’s Appliance and Tools segment includes a range of products and solutions in motors, appliances and components, tools and storage. It provides a range of electric motors, controls and assemblies from fractional to several thousand HP output. The Company’s electric motors are used in a range of home appliances. They include variable, fixed and multi-speed motors used in horizontal and vertical axis washers, dryers, and dishwashers. The motors are also used in residential and commercial pumps, such as those provided in spas, pools and golf course irrigation equipment; in heating, ventilation and air conditioning (HVAC) equipment, such as furnaces, compressors, condenser fans, heat pumps, cooling towers and commercial air handlers; and in industrial, farming and mining applications, where products, such as explosion-proof motors, paint-free washdown motors and industrial severe duty motors are offered.

Emerson provides a number of appliances and appliance technology solutions, ranging from water valves and controls to heating elements and switches. The Company’s appliance offering includes residential and commercial garbage disposers and ceiling fans, instant hot-water dispensers, and compact electric water heaters. Its appliance solutions provide integrated systems, sub-systems and components for appliances that include electronic and electromechanical controls for washers, dryers, dishwashers, refrigerators and other home appliances, as well as heating elements for dishwashers, electric ovens and water heaters.

The pipe-working tools are used by plumbing and mechanical professionals to install and repair piping systems. These tools include pipe wrenches, pipe cutters, pipe threading and roll grooving equipment; a time-saving system that joins tubing through mechanical crimping; drain cleaners; diagnostic systems including closed-circuit television pipe inspection and locating equipment, and tubing tools. Other professional tools include water jetters, wet-dry vacuums, rolling storage boxes, truck work boxes, bolt cutters, and van and truck ladder racks. Do-it-yourself tools, available at home improvement retail outlets, include drain cleaning equipment, pipe and tube working tools, and wet-dry vacuums.

Emerson provides a range of freestanding, fixed and mobile storage products for residential, commercial, healthcare and food service applications. The Company’s products for the home include wall-mounted and freestanding shelving systems, cabinet and closet organizers, home office storage, and drawer systems and containers, available in wire, stainless steel and laminate. Its storage solutions include storage and display shelving, stock-picking and kitting carts, cabinets, totes, bins, workstations, and merchandising and inventory storage racks. Products provided to the healthcare industry assist in medical response and treatment; they include emergency and operating room carts, medication carts, polymer and wire shelving systems, and sterile worktables. The food service equipment helps meet the storage needs of the food service and hospitality industries, such as restaurants and hotels. This equipment includes polymer and wire storage systems, busing carts, pan and tray racks, transport carts and workstations.