Posted February 3, 2010
Emerson's sales fall 7%
Emerson announced that net sales for the first quarter ended Dec. 31 were $5.0 billion, a decline of 7 percent from $5.4 billion reported in the prior year quarter.
Diluted earnings per share for the first quarter were down 7 percent to 56 cents per share. Despite the decline in sales, gross profit margin expanded 110 basis points to 38.0 percent and operating profit margin was even with the prior year at 14.8 percent, impacted positively by cost reduction initiatives and restructuring benefits.
“Considering the continuing economic pressures, this was a solid quarter and an encouraging start for 2010,” said chairman, CEO and president David N. Farr. “Our margin improvement demonstrates that we are doing the right things to drive global best cost and increase shareholder value. To successfully manage through the uncertain economic conditions that remain in most of our markets, we are focused on accelerating new product programs, investing in emerging markets, and making strategic acquisitions in our core and adjacent markets. This is positioning us for sustainable sales and profit improvements as global economic conditions improve.”
Process Management sales declined 9 percent in the quarter, versus their highest first quarter sales on record in fiscal 2009.
Industrial Automation sales decreased 21 percent in the quarter against a tough comparison to the prior year quarter in which underlying sales were still growing.
