Summary
Emerson Electric Co. reported a strong first quarter for fiscal year 2013, with net sales increasing by 5% to $5.6 billion and net earnings attributable to common stockholders rising by 22% to $454 million compared to the prior year period. This growth was driven by robust performance in the Process Management segment, benefiting from strong demand in global oil and gas, chemicals, and power markets, as well as favorable year-over-year comparisons due to the previous year's supply chain disruptions. The company also saw positive sales contributions from its Climate Technologies segment and solid demand in U.S. residential end markets. Despite some softness in Industrial Automation and Network Power segments, the overall results demonstrate a positive trajectory for Emerson. Financially, the company maintained a solid balance sheet with key leverage ratios remaining stable. Operating cash flow saw a significant increase of 66% to $554 million, leading to a substantial improvement in free cash flow. Emerson reiterated its positive fiscal year 2013 outlook, anticipating continued sales growth and an improvement in earnings per share, driven by its strategic investments and operational efficiencies.
Financial Highlights
52 data points| Revenue | $5.55B |
| Cost of Revenue | $3.35B |
| Gross Profit | $2.21B |
| SG&A Expenses | $1.39B |
| Operating Income | $454.00M |
| Net Income | $454.00M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 722.30M |
| Shares Outstanding (Diluted) | 726.90M |
Key Highlights
- 1Net sales increased 5% to $5.6 billion for the quarter ended December 31, 2012, compared to $5.3 billion in the prior year period.
- 2Net earnings attributable to common stockholders rose significantly by 22% to $454 million, with diluted EPS increasing to $0.62 from $0.50.
- 3The Process Management segment was a key driver of growth, with sales up 24% and earnings up 75% due to strong demand in energy and chemical sectors.
- 4Operating cash flow showed substantial improvement, increasing 66% to $554 million, contributing to a strong free cash flow of $439 million.
- 5The company provided a positive fiscal 2013 outlook, projecting sales growth of 2-5% and EPS between $3.53 and $3.63.
- 6Despite overall growth, Industrial Automation and Network Power segments experienced sales declines due to weakness in their respective end markets.