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EMERSON ELECTRIC CO. REPORTS NET EARNINGS AND EARNINGS PER SHARE - THE HIGHEST FOR ANY FOURTH QUARTER AND YEAR IN THE COMPANY'S HISTORY

EMERSON ELECTRIC CO. REPORTS NET EARNINGS AND EARNINGS PER SHARE -

THE HIGHEST FOR ANY FOURTH QUARTER AND YEAR IN THE COMPANY'S HISTORY
 ST. LOUIS, Nov. 3 /PRNewswire/ -- Charles F. Knight, chairman and chief executive officer of Emerson Electric Co., announced today that the company had achieved record net earnings and earnings per share for the fourth quarter and fiscal year 1992. This was the 35th consecutive year of record earnings and earnings per share for the company.
 Emerson's earnings per common share were $2.96 for fiscal 1992, an increase of 4.6 percent over earnings per common share of $2.83 for fiscal 1991. Net earnings for fiscal 1992 were $662,893,000, an increase of 4.9 percent over net earnings of $631,948,000 for the prior year.
 Emerson's net sales for fiscal 1992 were a record $7,705,981,000, an increase of 3.8 percent from net sales of $7,426,955,000 in fiscal 1991.
 The company's earnings per common share for the three-month period ended Sept. 30, 1992 were $0.75, an increase of 5.6 percent over earnings per common share of $0.71 for the same quarter a year ago. Net earnings for the fourth quarter of fiscal 1992 were $167,933,000, an increase of 5.5 percent over net earnings of $159,189,000 for the fourth quarter of fiscal 1991.
 Emerson's net sales for the three-month period ended Sept. 30, 1992 were $1,991,910,000, an increase of 5.6 percent from net sales of $1,885,558,000 for the same period a year ago.
 Fiscal 1992 Highlights
 In announcing the results, Mr. Knight reported on the highlights of fiscal 1992:
 "Emerson's net earnings and earnings per share increased for the 35th consecutive year and dividends per share increased for the 36th consecutive year. These results were achieved during a sluggish domestic recovery and uncertain international economies.
 "Operating cash flow exceeded $1 billion, representing a record performance for the company and an increase of 3.6 percent over the prior year.
 "Sales increased 3.8 percent to a record $7.7 billion. This sales performance was achieved through solid domestic and U.S. export sales and strong new product growth. The largest sales gains for the year were achieved by the heating, ventilating and air conditioning components business and fractional motors business, fueled by improved residential construction markets and continued strong demand for new products. The appliance components business showed good gains reflecting acquisitions and improvements in end markets. The industrial machinery and equipment business was up, reflecting acquisitions and new product gains. The process control business was also up slightly despite difficult European economies. Consumer tools showed moderate gains. Sales in the industrial motors and drives business declined, reflecting weak European economies and sluggish industrial production spending. The continued slowdown in mainframe computer markets impacted our computer support products business, which experienced down sales versus a year ago.
 "International sales increased 1.8 percent to a record $3.1 billion, reflecting strong exports and favorable currency translation, and continue to represent 40 percent of total sales. Export sales increased 14 percent to a record $486 million.
 "Engineering and development expenditures increased to $245 million in fiscal 1992, or 3.2 percent of sales. New products sales, from products introduced in the prior five years, increased 15 percent to a record $1.8 billion, or 23 percent of sales for the year.
 "Capital spending reached a record $346 million or 4.5 percent of sales supporting cost reductions and productivity improvements of the company's Best Cost Producer strategy and the introduction of new products.
 "Consolidated pretax profitability remained at a high level. The consolidated net earnings margin improved to 8.6 percent of sales, the highest level since fiscal 1983.
 "Emerson achieved a return on average stockholders' equity of 19.0 percent, consistent with the company's 18-20 percent target range for this important measure of performance.
 "Emerson continues to generate strong cash flow and finished the year in a strong financial position. The company's strong balance sheet is a significant competitive asset. During the year, cash flow was used to reduce debt by $395 million, positioning the company to acquire Fisher Controls International from Monsanto Company subsequent to year end.
 "On October 1, 1992, Emerson acquired Fisher Controls International, a leading producer of control valves, regulators and control systems for major process industries including chemical, oil and gas, and pulp and paper. The net purchase price was approximately $1.25 billion. Fisher has annual net sales of approximately $935 million. The acquisition is not expected to materially impact 1993 net earnings or earnings per share.
 "In connection with an acquisition of this size, Standard & Poor's and Moody's have revised Emerson's long-term debt rating from triple-A to AA+ and Aa1, respectively. Both agencies have confirmed Emerson's commercial paper rating at A1+ and P1, respectively.
 "On September 30, 1992, Emerson and Robert Bosch GmbH completed the previously announced 50-50 joint venture for the development, manufacture and distribution of power tools. The new joint venture, S-B Power Tool Company, combines Emerson's Skil operations and Bosch's U.S. power tool operations. Sales comparisons will be affected in 1993, as Skil had fiscal 1992 sales of approximately $350 million. Emerson will recognize 50 percent of the earnings of S-B Power Tool as equity income. As a result of the transaction, Emerson recognized a pretax gain of $43 million in fiscal 1992. The gain was offset by a $50 million pretax charge recognized in the fourth quarter primarily for the shutdown and restructuring of facilities and operations.
 "We view the economic outlook for fiscal 1993 with a good deal of caution. Obviously, we are faced with a global slowdown combined with a continued sluggish domestic economy. Recent currency fluctuations have added to the uncertainty in European economies. However, during 1992, the company had taken actions to protect margins which will continue to pay benefits through fiscal 1993. We are confident that Emerson, based on its demonstrated track record of performance in difficult economic environments, can deal with the challenges ahead in fiscal 1993," Mr. Knight said.
 EMERSON ELECTRIC CO. AND SUBSIDIARIES
 Consolidated Operating Results
 (millions of dollars except per share amounts)
 Fiscal year ended Percent
 Sept. 30 1992 1991 Increase
 Net sales $7,706.0 $7,427.0 3.8
 Earnings before
 income taxes 1,043.9 1,003.1 4.1
 Net earnings 662.9 631.9 4.9
 Earnings per
 common share 2.96 2.83 4.6
 THREE MONTHS ENDED
 SEPTEMBER 30,
 Three months Percent
 Sept. 30 1992 1991 Increase
 Net sales $1,991.9 $1,885.6 5.6
 Earnings before
 income taxes 264.6 252.8 4.7
 Net earnings 167.9 159.1 5.5
 Earnings per
 common share 0.75 0.71 5.6
 -0- 11/3/92
 /CONTACT: William K. Anderson or James R. Orso, 314-982-1700, for Emerson Electric Co.
 (EMR) CO: Emerson Electric Co. ST: Missouri IN: CPR SU: ERN


AH -- NY033 -- 2052 11/03/92 12:02 EST
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