Summary
Emerson Electric Co. reported strong financial performance for the six months ended March 31, 2011, with net sales increasing by 16% to $11.39 billion and net earnings rising 25% to $1.04 billion. This growth was driven by broad-based increases across all segments, particularly Process Management, Industrial Automation, and Network Power, supported by recovering economic conditions and strategic repositioning. The company demonstrated robust operational efficiency, with gross margins holding steady at 39.2% despite increased material costs, and a reduction in SG&A as a percentage of sales. The balance sheet remains strong, with key financial ratios indicating stability and financial flexibility. Looking ahead, Emerson forecasts fiscal 2011 sales between $24.3 billion and $24.8 billion, representing a 15-18% increase over 2010. Diluted earnings per share from continuing operations are projected to be in the range of $3.20 to $3.30. The company continues to navigate global economic uncertainties while executing its strategic initiatives, aiming to reinvest in its businesses and pursue acquisitions.
Financial Highlights
53 data points| Revenue | $5.85B |
| Cost of Revenue | $3.55B |
| Gross Profit | $2.31B |
| SG&A Expenses | $1.31B |
| Operating Income | $556.00M |
| Net Income | $556.00M |
| EPS (Basic) | $0.74 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 752.10M |
| Shares Outstanding (Diluted) | 757.30M |
Key Highlights
- 1Net sales for the six months ended March 31, 2011, increased 16% to $11.39 billion from $9.78 billion in the prior year period.
- 2Net earnings attributable to common stockholders grew 25% to $1.04 billion for the six months ended March 31, 2011, compared to $830 million in the prior year.
- 3Diluted earnings per share from continuing operations rose to $1.36 for the first six months of fiscal 2011, a 25% increase from $1.09 in the same period last year.
- 4The company experienced strong sales growth across all segments, with Process Management, Industrial Automation, and Network Power showing significant increases.
- 5Gross margin remained consistent at 39.2% for the first six months of fiscal 2011, despite higher material costs, due to volume leverage and cost savings.
- 6Selling, General, and Administrative (SG&A) expenses as a percentage of sales decreased to 23.0% from 23.9% for the six-month period.
- 7The company's financial position remains strong, with a healthy interest coverage ratio of 13.0X and a total debt-to-total capital ratio of 32.5% as of March 31, 2011.