Printer Friendly

EMERSON REPORTS 36TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE; SALES, NET EARNINGS, EARNINGS PER SHARE HIGHEST FOR ANY 4Q

 ST. LOUIS, Nov. 2 /PRNewswire/ -- Charles F. Knight, chairman and chief executive officer of Emerson Electric Co. (NYSE: EMR), announced today that the company had achieved record sales, net earnings and earnings per share for the fourth quarter and fiscal year 1993. This was the 36th consecutive year of increased earnings and earnings per share for the company.
 The company's net sales for fiscal 1993 were a record 8,173,805,000, an increase of 6.1 percent over net sales of $7,705,981,000 in fiscal 1992.
 Emerson's earnings per common share were $3.15 for fiscal 1993, an increase of 6.4 percent over earnings per common share of $2.96 for fiscal 1992. Net earnings were $708,104,000 for fiscal 1993, an increase of 6.8 percent over net earnings of $662,893,000 for the prior year.
 The company's net sales for the three-month period ended September 30, 1993 were $2,041,216,000, an increase of 2.5 percent versus net sales of $1,991,910,000 for the same period a year ago.
 The company's earnings per common share for the three-month period ended September 30, 1993 were $0.80, an increase of 6.7 percent over earnings per common share of $0.75 for the same quarter a year ago. Net earnings for the fourth quarter of fiscal 1993 were $179,967,000, an increase of 7.2 percent over net earnings of $167,933,000 for the fourth quarter of fiscal 1992.
 Fiscal 1993 Highlights
 In announcing the results, Mr. Knight reported on the highlights of fiscal 1993: "Emerson's net earnings and earnings per share increased for the 36th consecutive year and dividends per share increased for the 37th consecutive year. These results were achieved during a sluggish domestic recovery and recessionary European and Japanese economies. "Operating cash flow reached $1.075 billion, representing a record performance for the company and an increase of 7.4 percent he removal of Skil fr consolidated sales as a result of the formation of the 50-50 S-B Power Tool Company joint venture. Total domestic sales increased almost 8 percent versus the levels achieved in fiscal 1992, while underlying domestic sales rose modestly during the year. Sed?omestic ma rk s experienced strengthening sales trends in the fourth quarter.
 "Total international sales, including exports, rose modestly versus fiscal 1992, reflecting the addition of Fisher. Underlying international sales were down due to unfavorable exchange rates and recessions in Europe and Japan, which more than offset solid sales gains in exports and developing Asia-Pacific countries. U.S. export sales continued to provide double-digit sales growth as they increased over 15 percent during the fiscal year, while underlying export sales increased moderately despite the stronger dollar. Total exports experienced their strongest quarter of the year in the fourth quarter with underlying exports increasing over 15 percent.
 "The Process Control business reported the largest sales gain during the fiscal year due to the addition of Fisher. Strong sales gains were achieved in the Appliance Components business due to improvements in appliance end markets. Sales of the Tools business increased slig improvement p grm?s across the company. The consolide Skil trasaction as well as improved performance by other joint ventures. The performance of the company's major tool joint ventures exceeded expectations during the fiscal year.
 "Engineering and development expenditures increased to $272 million in fiscal 1993, or 3.3 percent of sales. New product sales, from products introduced in the prior five years, increased over 10 percent to a record $2.0 billion, or more than 23 percent of sales for the year.
 "The company continued its strong support of new product programs and the company's Best Cost Producer strategy by spending $306 million on capital during the fiscal year.
 "Emerson achieved a return on average stockholders' equity of 18.5 percent, consistent with the company's 18-20 percent target range for this important measure of performance.
 "Emerson continues to generate strong operating cash flow and finished the year in a strong financial position. The company's balance sheet is a significant competitive asset which will continue to be used to pursue future growth opportunities. During the year, cash flow was used to reduce debt by $483 million subsequent to the issuance of debt for the Fisher acquisition, resulting in a net debt to net capital ratio of 27.9 percent at fiscal year end.
 "The fiscal 1993 dividend of $1.44 per share represented the 37th consecutive year of increased cash dividends. The board of directors today voted to increase the quarterly dividend 8.3 percent to an annualized rate of $1.56 per share.
 "The economic outlook indicates that fiscal 1994 should see a continuation of the momentum established in domestic and developing Asia-Pacific economies during fiscal 1993, while Europeanand Japanese markets remain challenging. We also expect unfavorable exchange rates to continue to impact sales comparisons, particularly in the first half of the year. However, we are confident that Emerson is well positioned to deal with the challenges ahead in fiscal 1994," Mr. Knight said.
 EMERSON ELECTRIC CO. AND SUBSIDIARIES
 Consolidated Operating Results
 (Millions Of Dollars Except Per Share Amounts)
 FISCAL YEARS ENDED
 SEPTEMBER 30,
 Percent
 1993 1992 Increase
 Net sales $8,173.8 $7,706.0 6.1 pct
 Earnings before
 income taxes 1,112.0 1,043.9 6.5 pct
 Net earnings 708.1 662.9 6.8 pct
 Earnings per common
 share 3.15 2.96 6.4 pct
 THREE MONTHS ENDED
 SEPTEMBER 30,
 Percent
 1993 1992 Increase
 Net sales $2,041.2 $1,991.9 2.5 pct
 Earnings before
 income taxes 280.3 264.6 5.9 pct
 Net earnings 180.0 167.9 7.2 pct
 Earnings per common
 share 0.80 0.75 6.7 pct
 -0- 11/2/93
 /CONTACT: William K. Anderson or James R. Orso of Emerson Electric, 314-982-1700/
 (EMR)


CO: Emerson Electric Co. ST: Missouri IN: CPR SU: ERN

LG -- NY049 -- 3030 11/02/93 11:35 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 2, 1993
Words:1002
Previous Article:INTERPOOL POSTS 62 PERCENT RISE IN 3RD QUARTER PROFITS; SAYS $58 MILLION PRIVATE PLACEMENT INVESTMENT GRADE RATES TO CUT FUTURE BORROWING COSTS
Next Article:EMERSON ELECTRIC CO. INCREASES QUARTERLY CASH DIVIDEND

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