What were Emerson Electric's key financial performance indicators for the fiscal year ended September 30, 2006?

For the fiscal year ended September 30, 2006, Emerson Electric reported net sales of $20,133 million, an increase from $17,305 million in fiscal 2005. Earnings from continuing operations were $1,845 million, up from $1,422 million in the prior year. Diluted earnings per share from continuing operations were $4.48, compared to $3.40 in fiscal 2005.

How diversified is Emerson Electric's business by segment and geography?

Emerson Electric operates across five distinct business segments: Process Management (23% of sales), Industrial Automation (18%), Network Power (21%), Climate Technologies (17%), and Appliance and Tools (21%). Geographically, the United States accounted for 53% of sales in 2006, with Europe at 22%, Asia at 14%, and other regions at 11%.

What is Emerson Electric's outlook for fiscal year 2007?

Emerson Electric provided a positive outlook for fiscal year 2007, expecting underlying sales growth of 5-7% (excluding currency and acquisition/divestiture impacts). Reported sales growth is anticipated to be between 7-11%. The company projected earnings per share growth of 12-15% over the 2006 EPS of $4.48.

What is Emerson Electric's approach to research and development?

Emerson Electric demonstrated a commitment to innovation, with research and development costs increasing to $356 million in fiscal 2006, compared to $303 million in fiscal 2005 and $280 million in fiscal 2004. This investment is crucial for developing new and improved products and services to maintain a competitive edge.

EMR 10-K FY2006 Annual Report — Revenue, Net Income, EPS

Summary

Emerson Electric Co. reported strong performance for the fiscal year ending September 30, 2006, with net sales reaching $20,133 million, an increase from $17,305 million in the prior year. Earnings from continuing operations also saw significant growth, rising to $1,845 million from $1,422 million in fiscal 2005. This robust growth was driven by the company's diversified business segments, including Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools. The company's strategic focus on providing technology solutions and engineering services across industrial, commercial, and consumer markets appears to be paying off. Emerson's significant international presence, with 47% of sales generated outside the U.S., contributes to its global reach and revenue diversification. The company also demonstrated a commitment to returning value to shareholders, as evidenced by its consistent dividend payments and share repurchase program.

Key Highlights

1Net sales increased to $20,133 million in fiscal 2006 from $17,305 million in fiscal 2005, indicating strong top-line growth.
2Earnings from continuing operations grew to $1,845 million in fiscal 2006, up from $1,422 million in fiscal 2005, demonstrating improved profitability.
3The company operates through five diversified segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools, reducing reliance on any single market.
4International sales represented a significant portion of total revenue, with $9,545 million generated outside the United States in fiscal 2006.
5Emerson's order backlog stood at $4,054 million as of September 30, 2006, up from $3,229 million in the prior year, suggesting strong future demand.
6Research and development expenses increased to $356 million in fiscal 2006, highlighting continued investment in innovation.
7The company actively repurchased its shares, with 5.6 million shares bought back in the fourth quarter of fiscal 2006.

EMERSON ELECTRIC CO Annual Report, Year Ended Sep 30, 2006

Summary

Key Highlights

Frequently Asked Questions