Summary
Emerson Electric Co. (EMR) reported total net sales of $18.4 billion for the fiscal year ended September 29, 2019, representing a 6% increase over the prior year, driven significantly by acquisitions which contributed 5% to the growth. Underlying sales, excluding the impact of acquisitions and foreign currency fluctuations, increased by 3%. Net earnings attributable to common stockholders rose by 5% to $2.3 billion, translating to diluted earnings per share of $3.71, a 7% increase. The company generated robust operating cash flow of $3.0 billion. Emerson operates through two primary segments: Automation Solutions and Commercial & Residential Solutions. The Automation Solutions segment, comprising over two-thirds of total sales, showed strong growth with a 7% increase in sales, driven by acquisitions and underlying volume increases. The Commercial & Residential Solutions segment saw a more modest 3% sales increase, with mixed performance between its Climate Technologies and Tools & Home Products sub-segments, impacted by acquisition contributions and differing market conditions. The company continued its strategic portfolio management through acquisitions, particularly in the Automation Solutions segment, aiming to enhance its technology offerings and market position.
Financial Highlights
56 data points| Revenue | $18.37B |
| Cost of Revenue | $10.56B |
| Gross Profit | $7.82B |
| R&D Expenses | $454.00M |
| SG&A Expenses | $4.46B |
| Operating Income | $2.31B |
| Net Income | $2.31B |
| EPS (Basic) | $3.74 |
| EPS (Diluted) | $3.71 |
| Shares Outstanding (Basic) | 616.20M |
| Shares Outstanding (Diluted) | 620.60M |
Key Highlights
- 1Emerson reported net sales of $18.4 billion in fiscal year 2019, up 6% from the prior year, with acquisitions contributing 5% growth.
- 2Net earnings attributable to common stockholders increased by 5% to $2.3 billion, and diluted EPS grew 7% to $3.71.
- 3Operating cash flow remained strong at $3.0 billion.
- 4The Automation Solutions segment showed robust growth, with sales up 7% to $12.2 billion, supported by acquisitions and underlying demand.
- 5Commercial & Residential Solutions segment sales grew 3% to $6.2 billion, with contributions from acquisitions offsetting some market softness.
- 6The company made strategic acquisitions primarily within the Automation Solutions segment, totaling $469 million in 2019.
- 7Emerson continues to return value to shareholders through dividends, with an announced 2% increase in the quarterly cash dividend.