Emerson Electric Co. or Lennox International Inc.: Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: Emerson Electric Co. or Lennox International Inc.?

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Emerson Electric Co. and Lennox International Inc. have showcased contrasting strategies in handling these costs. Emerson Electric Co. has seen a significant reduction in SG&A expenses, dropping from a peak in 2014 to a low in 2016, before stabilizing around 4.2 billion USD in recent years. This represents a 25% decrease from their highest point. In contrast, Lennox International Inc. has maintained a more consistent approach, with expenses hovering around 600 million USD, showing a modest increase of about 10% over the same period. This data highlights Emerson's aggressive cost-cutting measures compared to Lennox's steady management. As businesses navigate economic uncertainties, these insights offer valuable lessons in financial stewardship.