What were the primary drivers of Emerson Electric's sales growth in the reported periods?

Sales growth was primarily driven by increased underlying sales volume across most segments, favorable foreign currency translation, and contributions from recent acquisitions. International sales, particularly in Asia and Europe, showed significant strength, alongside growth in the United States.

How did Emerson Electric manage its costs and expenses during this period?

Emerson benefited from leveraging fixed costs on higher sales volumes and the positive impact of previous rationalization actions. While material and wage costs increased, gross profit margins improved slightly due to higher sales and cost efficiencies. Selling, general, and administrative expenses as a percentage of sales also saw a slight reduction.

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

The company projects continued positive performance, with expected underlying sales growth of 6% to 7% and reported sales growth of 10% to 12%. Earnings per share are anticipated to grow by 15% to 17% compared to fiscal year 2006, reaching between $2.58 and $2.63.

Did Emerson Electric undertake any significant acquisitions or divestitures during this period?

Yes, Emerson completed two acquisitions: Damcos Holding AS in January 2007 for approximately $214 million, and Stratos International, Inc. in July 2007 for approximately $86 million. These acquisitions are expected to contribute to future growth.

EMR 10-Q Quarterly Report Q3 FY2007 — Revenue, Net Income, EPS

Summary

Emerson Electric Co. reported strong financial results for the third quarter and the first nine months of fiscal year 2007, driven by broad-based sales and earnings growth across all five business segments. Net sales increased by 13% for the quarter and 12% for the nine-month period, with significant contributions from international markets, particularly Asia and Europe, and a positive impact from foreign currency translation and strategic acquisitions. The company demonstrated improved profitability, with net earnings rising by 18% for the quarter and 15% for the nine-month period. This was supported by higher sales volumes, benefits from previous rationalization actions, and improved gross profit margins. Emerson's financial position remains robust, with substantial cash flow generation, a solid balance sheet, and a positive outlook for the remainder of fiscal 2007, projecting earnings per share growth of 15% to 17%.

Key Highlights

1Net sales for the three months ended June 30, 2007, increased by 13% to $5.87 billion, and for the nine months ended June 30, 2007, increased by 12% to $16.44 billion.
2Net earnings for the third quarter rose by 18% to $574 million, with diluted earnings per share increasing to $0.72.
3For the nine months ended June 30, 2007, net earnings increased by 15% to $1.51 billion, with diluted earnings per share reaching $1.88.
4All five business segments (Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools) reported sales and earnings growth.
5The company completed two acquisitions: Damcos Holding AS in January 2007 and Stratos International, Inc. in July 2007, further strengthening its market position.
6Emerson expects full fiscal year 2007 earnings per share to be in the range of $2.58 to $2.63, representing 15% to 17% growth over fiscal year 2006.
7Cash and equivalents increased by $521 million during the first nine months of fiscal 2007, reflecting strong operating cash flow.

EMERSON ELECTRIC CO Quarterly Report for Q3 Ended Jun 30, 2007

Summary

Key Highlights

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