Emerson Reports First Quarter 2010 Results
l Sales of $5.0 billion, down 7 percent
l Earnings per share of $0.56, down 7 percent
l Solid operating cash flow of $687 million, up 115 percent
l Expect full year earnings per share of $2.20 to $2.40, based on improving business conditions
February 02, 2010 06:41 AM Eastern Time
ST. LOUIS--(EON: Enhanced Online News)--Emerson (NYSE: EMR) announced that net sales for the first
quarter ended December 31, 2009 were $5.0 billion, a decline of 7 percent from $5.4 billion reported in the prior
year quarter. Underlying sales in the quarter declined 13 percent, which excludes a 3 percent favorable impact each
from currency exchange rates and acquisitions. Underlying sales in emerging markets declined only 4 percent in the
quarter, helped by growth in Asia of 4 percent, compared to a decline of 18 percent in mature markets.
Diluted earnings per share for the first quarter were down 7 percent to $0.56 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. The pretax earnings
margin for the first quarter was 11.7 percent compared to 12.6 percent in the prior year period primarily due to
increased acquisition amortization and interest expense.
“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 glob