Summary
Emerson Electric Co. (EMR) reported strong financial results for the period ending March 31, 2018, showcasing robust growth driven by strategic acquisitions and favorable market conditions. Net sales increased significantly year-over-year, boosted by the Automation Solutions segment, which saw substantial growth from the acquisition of the valves & controls business. The Commercial & Residential Solutions segment also performed well, with growth in Climate Technologies partially offset by the divestiture of the residential storage business. Profitability improved considerably, with net earnings and earnings per share showing substantial increases, aided by higher sales, operational efficiencies, and the positive impact of U.S. tax reform. The company's financial condition remains strong, with ample liquidity and a clear strategy for deploying capital. Emerson also provided a positive outlook for the full fiscal year 2018, anticipating continued sales growth and earnings per share within a projected range, underscoring management's confidence in the company's strategic direction and market position.
Financial Highlights
53 data points| Revenue | $4.25B |
| Cost of Revenue | $2.43B |
| Gross Profit | $1.82B |
| SG&A Expenses | $1.03B |
| Operating Income | $482.00M |
| Net Income | $482.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 632.60M |
| Shares Outstanding (Diluted) | 636.00M |
Key Highlights
- 1Net sales for the six months ended March 31, 2018, increased by 19% to $8.1 billion, driven by acquisitions and underlying sales growth.
- 2Automation Solutions segment sales grew 31% for the six months, largely due to the significant acquisition of the valves & controls business, alongside strong underlying demand.
- 3Net earnings attributable to common stockholders for the six months increased by 46% to $874 million, compared to $601 million in the prior year.
- 4Diluted earnings per share from continuing operations rose 20% to $1.37 for the six months, reflecting improved profitability and operational performance.
- 5The company completed several acquisitions during the period, including Paradigm and Cooper-Atkins, to strengthen its product portfolio and market reach.
- 6The effective tax rate decreased due to the U.S. Tax Cuts and Jobs Act of 2017, which lowered the corporate income tax rate.
- 7Emerson provided a positive full-year 2018 outlook, projecting consolidated net sales to increase by approximately 13% and earnings per share between $3.10 and $3.20.