Summary
Emerson Electric Co. reported a strong fiscal year 2021 with net sales of $18.2 billion, a 9% increase over the prior year. This recovery brought sales back to pre-COVID-19 levels, driven by a 5% increase in underlying sales, a 3% boost from foreign currency translation, and a 1% contribution from the OSI acquisition. Net earnings common stockholders rose 17% to $2.3 billion, with diluted earnings per share increasing 18% to $3.82. The company generated robust operating cash flow of $3.6 billion, a 16% increase, demonstrating strong cash-generating capabilities. Key strategic initiatives included the announced agreement to combine two software businesses with Aspen Technology, Inc., positioning Emerson to own 55% of the new entity. The company continues to focus on innovation, sustainability, and operational efficiency, as evidenced by its "Greening Of, Greening By, Greening With" framework and a commitment to reducing greenhouse gas emissions. Despite ongoing supply chain challenges and material price volatility, Emerson successfully navigated these headwinds, ending the year with a solid financial position and a backlog of $6.5 billion, with 85% expected to be recognized within 12 months.
Financial Highlights
57 data points| Revenue | $12.93B |
| Cost of Revenue | $7.20B |
| Gross Profit | $7.56B |
| R&D Expenses | $347.00M |
| SG&A Expenses | $3.49B |
| Operating Income | $1.41B |
| Interest Expense | $147.00M |
| Net Income | $2.30B |
| EPS (Basic) | $3.85 |
| EPS (Diluted) | $3.82 |
| Shares Outstanding (Basic) | 598.10M |
| Shares Outstanding (Diluted) | 601.80M |
Key Highlights
- 1Net sales increased by 9% to $18.2 billion in fiscal year 2021, recovering to 2019 levels.
- 2Underlying sales grew by 5%, indicating core business strength, further supported by a 3% favorable foreign currency impact.
- 3Net earnings for common stockholders rose 17% to $2.3 billion, with diluted EPS up 18% to $3.82.
- 4Operating cash flow increased 16% to $3.6 billion, highlighting strong cash generation.
- 5Announced agreement to combine industrial software businesses with Aspen Technology, Inc., in a transaction expected to result in Emerson owning 55% of the new entity.
- 6Order backlog grew to $6.5 billion, with 85% expected to be recognized in revenue over the next 12 months.
- 7Company continues to emphasize sustainability initiatives, including a commitment to reduce greenhouse gas emissions.