Summary
Emerson Electric Co. reported its fiscal year 2009 results, a period marked by a challenging economic environment. Despite a decline in net sales to $20.9 billion from $24.8 billion in 2008, the company demonstrated resilience. Looking ahead to fiscal year 2010, Emerson projected a further decline in underlying sales but anticipated reported sales to be flat to slightly down, reflecting expectations of stabilization and potential benefits from currency fluctuations and acquisitions. The company's diversified business segments, including Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools, provide a degree of stability, though the report indicates potential headwinds from competitive pressures and economic downturns. Management highlighted its strategic positioning and focus on operational improvements to navigate the uncertain economic landscape. Key to Emerson's strategy are ongoing research and development investments to introduce new products and services, a disciplined approach to acquisitions, and maintaining access to capital markets. The company emphasized its commitment to delivering solutions to customers and maintaining a competitive global cost structure, aiming to mitigate the impact of potential raw material price increases and currency fluctuations. Investors should note the company's use of non-GAAP financial measures to provide a clearer view of ongoing operational performance.
Financial Highlights
55 data points| Revenue | $20.10B |
| Cost of Revenue | $12.54B |
| Gross Profit | $7.56B |
| R&D Expenses | $460.00M |
| SG&A Expenses | $4.42B |
| Operating Income | $1.72B |
| Net Income | $1.72B |
| EPS (Basic) | $2.29 |
| EPS (Diluted) | $2.27 |
| Shares Outstanding (Basic) | 753.70M |
| Shares Outstanding (Diluted) | 758.70M |
Key Highlights
- 1Net sales decreased to $20.9 billion in fiscal year 2009, down from $24.8 billion in 2008, reflecting a challenging economic climate.
- 2The company projects underlying sales to decline by 5-7% in fiscal year 2010, with reported sales expected to be between -2% and +2%.
- 3Emerson operates through five diversified segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools, indicating a broad market presence.
- 4Research and development expenses remained significant, totaling $460 million in 2009, underscoring the company's focus on innovation.
- 5The consolidated order backlog decreased to $4.6 billion in 2009 from $5.5 billion in 2008, suggesting a near-term reduction in future revenue visibility.
- 6Emerson manages a global footprint with approximately 250 manufacturing locations, a majority of which are located outside the United States.
- 7The company acknowledged the risks associated with operating in highly competitive markets and the potential impact of economic recessions on its results.