What was the primary driver for the change in reported net earnings per share in fiscal 2002?

Fiscal year 2002 reported net earnings per share were significantly impacted by a cumulative effect of a change in accounting principle. Excluding this effect, diluted earnings per share were $2.52, compared to $2.40 in the prior year. Including the cumulative effect, net earnings were $0.29 per diluted share.

How did Emerson's sales performance trend in fiscal 2002 compared to fiscal 2001?

Emerson experienced a decline in net sales in fiscal 2002, reporting $13.824 billion compared to $15.480 billion in fiscal 2001. This indicates a contraction in revenue during the reported period.

Is Emerson experiencing growth in its order backlog?

The company's consolidated order backlog saw a slight decrease, from $2.135 billion at the end of fiscal 2001 to $2.072 billion at the end of fiscal 2002. This suggests a marginal softening in future order commitments.

EMR 10-K FY2002 Annual Report — Revenue, Net Income, EPS

Q: What are Emerson's main business segments, and how diversified is the company?

Emerson operates across five primary segments: Process Control, Industrial Automation, Electronics and Telecommunications, Heating, Ventilating and Air Conditioning, and Appliance and Tools. This diversification across industrial, commercial, and residential markets provides a broad base for its operations.

Summary

Emerson Electric Co. (EMR) in its 2002 10-K filing reports a slight decrease in net sales for the fiscal year ended September 29, 2002, falling to $13.824 billion from $15.480 billion in 2001. This decline is accompanied by a modest increase in net earnings to $1.060 billion from $1.032 billion in the prior year, though net earnings per diluted share saw a significant impact from a change in accounting principle, resulting in reported earnings of $0.29 per share after excluding the cumulative effect. Excluding this accounting adjustment, diluted earnings per share were $2.52, a slight improvement from $2.40 in 2001. The company operates across five key segments: Process Control, Industrial Automation, Electronics and Telecommunications, Heating, Ventilating and Air Conditioning, and Appliance and Tools. These segments cater to diverse industrial, commercial, and residential markets globally. Despite a challenging economic environment impacting some sectors, Emerson continues to invest in research and development, with R&D costs at $530 million in 2002. The company's global manufacturing footprint includes approximately 320 locations, with a significant portion, about 185, located internationally.

Key Highlights

1Net sales decreased to $13.824 billion in fiscal 2002 from $15.480 billion in fiscal 2001.
2Net earnings increased to $1.060 billion in fiscal 2002 from $1.032 billion in fiscal 2001.
3Fiscal 2002 diluted earnings per share were $2.52, excluding a significant $0.61 per share charge from a change in accounting principle ($2.24 per share impact after exclusion).
4The company operates through five diversified business segments: Process Control, Industrial Automation, Electronics and Telecommunications, Heating, Ventilating and Air Conditioning, and Appliance and Tools.
5Consolidated order backlog slightly decreased to $2.072 billion in 2002 from $2.135 billion in 2001.
6Research and development spending was $530 million in fiscal 2002.
7International sales represented a significant portion of total revenue, totaling $5.751 billion in fiscal 2002.

EMERSON ELECTRIC CO Annual Report, Year Ended Sep 30, 2002

Summary

Key Highlights

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