Emerson announces the first quarter results of fis

2022-09-22
  • Detail

Emerson announced the first quarter results of fiscal year 2013

the first quarter net sales was $5.6 billion, an increase of 5%, of which the basic sales increased by 6%

the EBIT margin increased by 160 basis points

earnings per share was $0.62, an increase of 24%

St. Louis, Missouri (February 5, 2013). Emerson Corporation (NYSE: EMR) announced today, The net sales of the company in the first quarter ended December 31, 2012 was $5.6 billion, an increase of 5% year-on-year. The basic sales in this quarter increased by 6%, including the negative impact of 1% brought by exchange rate and asset divestiture, of which the basic sales in the United States increased by 6%, Asia increased by 6%, and Europe decreased by 2%. The sales data reflects the different performance of each end market and the positive changes compared with the weakness caused by the supply chain interruption in the previous fiscal year. As the leverage effect of sales volume and cost control benefits offset the adverse product portfolio, the EBIT margin increased by 160 basis points to 13.1%. Pre tax profit margin increased by 170 basis points to 12.1%. Earnings per share increased by 24% year-on-year to $0.62

under the condition that the global economic situation is still severe and full of uncertainty, the financial data of this quarter reflect the steady performance development of the company, said David n. Farr, chairman and CEO of Emerson. Although the overall investment level in our terminal market is low, the growth performance of our businesses is encouraging. Recent order trends indicate that market conditions are stabilizing and improving, especially in emerging markets

the operating cash flow in this quarter increased by 66% year-on-year to $554million, reflecting the growth of revenue and the slowing growth of working capital. Capital expenditure decreased by $15million year-on-year to $115million. Free cash flow increased by 115% to $439 million, reflecting a 97% yield conversion rate

the growth of cash flow has brought a good start to this fiscal year, which is in line with our strong expectations of receivables in this quarter, said fan Dawei. Lower capital expenditure shows that we remain cautious about investment unless the economic outlook improves. At the same time, we actively invest in key strategic projects to ensure that when global economic growth accelerates, we can follow the trend

business highlights

the sales of process management business increased by 24% in this quarter, which was mainly due to the strong growth of global energy investment and compared with the weakness caused by the supply chain interruption in the previous fiscal year. Basic sales increased by 24%, including 26% in the United States, 25% in Asia and 11% in Europe. Large project activities remained active, but higher profit maintenance investment slowed down, especially in the United States, because customers were more cautious about capital budgets. The business profit margin increased by 520 basis points to 17.6%, mainly due to the leverage effect of sales volume. The recent continuous investment in oil and gas, chemical industry and power industry will promote the strong demand of this terminal market

the sales of industrial automation business fell by 7% in this quarter, reflecting that the industrial investment in the means of production is still weak. Basic sales fell by 6%, including the negative impact of 1% brought by the exchange rate, of which the United States fell by 7%, Asia also fell by 7%, and Europe fell by 9%. The business of electric drive, alternator and industrial motor showed obvious weakness, but it was partially offset by the growth of sealed motor business brought by the demand for HVAC compressor. The business profit margin fell by 40 basis points to 14.4%, mainly due to the deleveraging effect of sales. Recently, demand is expected to continue to face pressure, especially in the European market and in the alternator business

the sales volume of network energy business fell by 2% in this quarter, which is due to the continued weakness of the telecommunications and information technology terminal market. Basic sales also fell by 2%, with the United States flat, Asia down 3% and Europe down 8%. The end market demand of the network energy system business varies, with the ups business in North America leading the growth, while the weakness in the European market is the most serious. Sales of embedded computing and power remain unchanged. 3.2 the profit margin of imitation flocking interior materials decreased by 100 basis points to 7.2%, mainly due to the deleveraging effect of sales volume and adverse product portfolio, but it is expected to achieve stable improvement throughout fiscal 2013. Driven by the growth of investment in the telecommunications terminal market, the order trend also reflects the expectation that the recent market situation of the network energy system business will improve

the sales of environmental optimization technology business increased by 2% in this quarter, ushering in the first increase in the past six financial quarters. Basic sales increased by 3%, including the negative impact of 1% brought by the exchange rate, including 1% in the United States, 7% in Asia and 2% in Europe. The profit margin of this business decreased by 20 basis points to 13.4%, which was due to the strong growth of the Asian market and the improvement of the U.S. market, mainly concentrated in the residential air conditioning terminal market with low profit margin. Global refrigeration demand remains weak, especially in the transportation business. It is expected that the recent growth will continue, the prospects of the residential terminal markets in Asia and the United States will stabilize, and the European market is expected to continue to improve

the sales of commercial and residential solutions business fell by 1% in this quarter, including the negative impact of 5% due to the divestiture of knaack business. Basic sales increased by 4%, mainly due to the 7% sales growth brought by the strong demand of the U.S. residential end market, especially the food waste processor business. The business profit margin increased by 30 basis points to 21.5%, mainly due to the comprehensive benefits brought by cost control and asset divestiture. The residential end market in North America is expected to continue to recover in the near future

many unqualified products can still pass the acceptance. Outlook for fiscal year 2013

global business investment remains slow and cautious, especially in the European market. Detecting two positions can better measure the axis errors of the two collet axes with different angles, but there are signs of demand rising in some markets. The business outlook is still full of challenges, but according to the current market conditions, the announced sales and basic sales in fiscal 2013 are expected to achieve an increase of 2% to 5%, and the EBIT margin will increase by 10 to 20 basis points [1]. Earnings per share are expected to be between $3.53 and $3.63, with an increase of 70% to 80% in the first half of the fiscal year. Emerson will provide further information about the business expectations at the annual investor meeting in Columbus, Ohio, next week

1. Excluding the 240 basis points effect of goodwill impairment in fy2012. The announced pre tax yield is expected to increase by 250 to 260 basis points

latest investor activity

at 2:00 p.m. Eastern time on February 5, 2013, Emerson senior management will discuss the first quarter results at the investor meeting. All parties concerned can log in to Emerson through the Internet, fill in a short registration form, enter the investor relations area, and listen to the live conference. The meeting can be replayed at the same station within three months after the end

on Monday, February 11, Emerson's senior management will hold the company's 2013 annual investor meeting in Columbus, Ohio. The meeting will last from 3:00 p.m. Eastern time to 1:00 p.m. February 12. The management will provide an overview of the company and a detailed review of Emerson energy, including visits to two nearby facilities. The webcast of the conference speech and the corresponding speech slides will be released in the investor relations area of Emerson station when the conference is held. After the meeting, the meeting replay video and speech slides will be released in the same location for about a week

Copyright © 2011 JIN SHI