Analysis

Gabriela Vicuna Miranda

 Terminal Operations Management  

With more and more parcels moving into and out of the terminal, ensuring the right charges are assessed to the right customers can be a labor-intensive and error plagued process. Emerson contract and billing solutions eliminate the need for paper-based systems by providing a single system of record to ensure charges are generated automatically for each transaction, resulting in right-fist-time invoices and faster order-to-cash.

Competition: Emerson Electric is a technology and engineering company providing various solutions to industrial, commercial, and residential markets. Emerson Electric competitors include Schneider Electric, GE Digital, Eaton, Honeywell and Alstom. Honeywell is perceived as one of Emerson Electric's biggest rivals. Like Emerson Electric, Honeywell also competes in the Electrical Components & Equipment industry. Honeywell generates 197% of Emerson Electric's revenue. Schneider Electric is a company specializing in the digital transformation of energy management and automation for homes and industries. Eaton is a diversified company providing solutions that help its customers manage electrical, hydraulic and mechanical power. 

                                 

Emerson Reports Fourth Quarter and Full Year 2020 Results:

• Fourth quarter GAAP net sales of $4.6 billion were down 8 percent; underlying sales were down 9 percent, in-line with management guidance. Full year GAAP net sales of $16.8 billion were down 9 percent; underlying sales were down 8 percent, also in-line with management guidance. 

• Fourth quarter GAAP EPS was $1.20, up 3 percent from the year prior; adjusted EPS, which excludes restructuring and certain tax benefits, was $1.10, down 4 percent. Full year GAAP EPS was $3.24, down 13 percent from the year prior, and ahead of guidance of $2.80 to $2.95; adjusted EPS was $3.46, down 6 percent, and ahead of guidance of $3.20 to $3.35. 

• Delivered strong operating cash flow of $1.23 billion in the quarter, up 2 percent, and $3.08 billion for the year, up 3 percent. 

• Delivered strong free cash flow of $1.02 billion in the quarter, up 2 percent, and $2.55 billion for the year, up 6 percent. 

• Initiated $73 million of restructuring and related actions in the quarter, totaling $304 million for the year, continuing aggressive execution of the comprehensive cost reset program to return to record adjusted EBIT margins. 

• Completed 64 consecutive years of increased dividends per share and plan to announce a 2 cent increase for 2021, after today's Board of Directors meeting.

Information Silo: Gone are the days when information technology (IT) and operational technology (OT) could function separately in protected silos. Now the need to share resources and information is critical, especially when both are working with automation suppliers to better respond to todays complex and costly cybersecurity landscape. A landscape that the Center for Strategic and International Studies and McAfee reports has cost the world almost $600 billion or 0.8 percent of global GDP.

By working with Emerson, a trusted automation supplier and expert well-versed in the network and system security requirements and levels outlined in the International Society of Automation's (ISA) series of cybersecurity standards, refiners can gain further insights to develop and maintain strong cybersecurity strategies, work processes, training and ongoing support. Just like continuous monitoring is critical for its control and safety applications, so is ongoing cyber-defense monitoring and having counter measure in place to reduce the risk of a cybersecurity incident. 

Emerson Management Information System (EMIS) 

Emerson's Energy Advisor- A real time energy management IS that automates the process of monitoring and managing energy consumption across mills, plants and refineries. It provides up-to-the minute, meaningful information about your site’s energy performance to better identify inefficiencies and irregularities and take corrective action, potentially saving on average 5 to 10 percent in energy costs annually. 

Some key features of technology include:

• Consumption Monitoring: identifies and logs root causes for energy over-consumption events 
• Data Integrity Checker: verifies integrity of energy data before it is used 
• Energy Target Calculator: creates models from past historical data to predict target energy consumption. Optional process models from Emerson provide theoretical targets as well as other energy-related performance indicators 
• Standard Reports: including cost per unit of production, energy performance trends, and electrical demand cost.