Printer Friendly

EMERSON REPORTS 34TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE; HIGHEST FOR ANY FOURTH QUARTER AND YEAR IN COMPANY'S HISTORY

EMERSON REPORTS 34TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE; HIGHEST FOR ANY FOURTH QUARTER AND YEAR IN COMPANY'S HISTORY
    ST. LOUIS, Nov. 5 /PRNewswire/ -- Charles F. Knight, chairman and chief executive officer of Emerson Electric Co. (NYSE: EMR), announced today that the company had achieved record net earnings and earnings per share for the fourth quarter and fiscal year 1991.  This was the 34th consecutive year of record earnings and earnings per share for the company.
    Emerson's earnings per share were $2.83 for fiscal 1991, an increase of 2.9 percent over earnings per share of $2.75 for fiscal 1990.  Net earnings for fiscal 1991 were $631,948,000, an increase of 3.1 percent over net earnings of $613,182,000 for the prior year.
    Emerson's net sales for fiscal 1991 were $7,426,955,000, a decrease of 1.9 percent from net sales of $7,573,356,000 in fiscal 1990. Excluding the effect of acquisitions and divestitures, sales increased in fiscal 1991 over the prior year.
    The company's earnings per share for the three-month period ended Sept. 30, 1991, were $0.71, an increase of 2.9 percent over earnings per share of $0.69 for the same quarter a year ago.  Net earnings for the fourth quarter of fiscal 1991 were $159,189,000, an increase of 3.0 percent over net earnings of $154,593,000 for the fourth quarter of fiscal 1990.
    Emerson's net sales for the three-month period ended Sept. 30, 1991, were $1,885,558,000, a decrease of 7.5 percent from net sales of $2,038,732,000 for the same period a year ago.
                     Fiscal 1991 Highlights
    In announcing the results, Knight reported on the highlights of fiscal 1991:
    "Emerson's net earnings and earnings per share increased for the 34th consecutive year.  These results were achieved in a domestic recessionary environment and with international economies that became increasingly difficult as the year progressed.
    "Operating cash flow was $966 million, representing a record performance for the company and an increase of 17 percent over the prior year.
    "Sales increased 6 percent, excluding the spin-off of the company's government and defense business in the fourth quarter of the prior year, due to improved underlying sales performance and the effect of acquisitions.  The largest sales gains for the year were achieved by the heating, ventilating, and air conditioning business, aided by the severe summer weather, the continued strong demand for new products and penetration gains.
    "The process control business also showed good gains, benefiting from increased demand for new products.  The industrial machinery and equipment business was up, reflecting good plastics-joining sales.  The appliance components business showed gains due to the acquisition of Mallory Controls and generally showed improvement in the latter part of the year.  The industrial motors and drives business benefited from a full year of Leroy-Somer, but suffered from weak power transmission markets.  Fractional motors sales were up, assisted by a strong fourth quarter.  The recessionary environment impacted our tools and computer support products businesses, which experienced down sales versus a year ago.
    "International sales increased 10 percent to over $3.0 billion, reflecting acquisitions and currency translation, and now represents over 40 percent of total sales.  Export sales from ongoing operations increased over 17 percent.
    "The company completed the acquisition of Mallory Controls, a North American manufacturer of appliance controls.  Emerson also acquired a 29.9 percent interest in Control Techniques, a leader in variable speed electronic drives, and Buehler International, a manufacturer of material sample preparation equipment.  In addition, the company made several smaller product line acquisitions and divestitures during the year.
    "Engineering and development expenditures increased to $238 million in fiscal 1991, or 3.2 percent of sales.  New products accounted for a record $1.5 billion of sales, or more than 20 percent of sales for the year.
    "In the difficult economic environment of 1991, it became clear that further steps were necessary to achieve a more competitive cost structure.  The company improved pretax profit margins despite incurring over $35 million of start-up and restructuring charges in fiscal 1991, an increase of $10 million from the prior year.
    "Capital spending reached a record $311 million, supporting the company's Best Cost Producer strategy with its emphasis on cost reductions and productivity improvements.
    "Consolidated operating, pretax and net profitability improved over the prior year.  Consolidated net margins improved to 8.5 percent of sales, the highest level since fiscal 1985.
    "Emerson achieved a return on average stockholders' equity of 20.2 percent, matching the company's performance in 1990, the highest level since 1981 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 which will continue to be used to pursue future growth opportunities and provides flexibility in accessing global capital markets.
    "We view the economic outlook for fiscal 1992 with a great deal of caution.  Obviously, we are faced with a global slowdown combined with a continued sluggish or recessionary domestic economy.  During 1991, the company has taken actions to protect margins which will continue to pay benefits through fiscal 1992.  We expect a challenging fiscal 1992 -- the critical issue is the pattern of the domestic recovery, which we anticipate should see improvement in the second half of the fiscal year. 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 1992," Knight said.
                 EMERSON ELECTRIC CO. AND SUBSIDIARIES
                    Consolidated Operating Results
            (Millions of dollars except per share amounts)
      Fiscal years ended Sept. 30      1991        1990     Pct. Change
    Net sales                        $7,427.0    $7,573.4      (1.9)
    Earnings before income taxes      1,003.1       989.0       1.4
    Net earnings                     $  631.9    $  613.2       3.1
    Earnings per common share           $2.83       $2.75       2.9
      Three months ended Sept. 30      1991        1990     Pct. Change
    Net sales                        $1,885.6    $2,038.8      (7.5)
    Earnings before income taxes        252.8       249.8       1.2
    Net earnings                     $  159.1    $  154.6       3.0
    Earnings per common share           $0.71       $0.69       2.9
    -0-                       11/5/91
    /CONTACT:  William K. Anderson or James R. Orso, 314-982-1700, for Emerson/
    (EMR) CO:  Emerson Electric Co. ST:  Missouri IN:  HOU SU:  ERN GK -- NY040 -- 1219 11/05/91 11:41 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 5, 1991
Words:1076
Previous Article:MARYLAND WATER QUALITY $16.5 MILLION REVENUE BONDS RATED
Next Article:TAYSTEE BAKING ANNOUNCES PRODUCTION CHANGES FOR ITS NEW YORK BUSINESS
Topics:


Related Articles
EMERSON REPORTS RECORD RESULTS IN SALES, NET EARNINGS AND EARNINGS PER SHARE
EMERSON ELECTRIC CO. REPORTS NET EARNINGS AND EARNINGS PER SHARE - THE HIGHEST FOR ANY FOURTH QUARTER AND YEAR IN THE COMPANY'S HISTORY
EMERSON REPORTS RECORD SECOND QUARTER AND FIRST HALF SALES, NET EARNINGS AND EARNINGS PER SHARE
EMERSON REPORTS RECORD RESULTS IN SALES, NET EARNINGS AND EARNINGS PER SHARE FOR THIRD QUARTER AND FIRST NINE MONTHS
EMERSON REPORTS 36TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE; SALES, NET EARNINGS, EARNINGS PER SHARE HIGHEST FOR ANY 4Q
EMERSON REPORTS RECORD SECOND QUARTER AND FIRST HALF SALES, NET EARNINGS AND EARNINGS PER SHARE
EMERSON REPORTS 37TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE
EMERSON ELECTRIC EXPECTS TO REPORT 15 PERCENT GROWTH IN FIRST-QUARTER EPS
EMERSON REPORTS 38TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE
Emerson Electric Reports Record Results In Sales, Net Earnings And Earnings Per Share For Third Quarter And First Nine Months

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters