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Emerson Sails Through Second Quarter

Posted on Wednesday, May 02, 2007 5:00:00 PM       Sign Up to receive Daily News Alerts in your E-mail Inbox                            Digg This Article   Add to Delicious

Abstract:Fourteen percent increases in net sales and earnings are driven by strong international demand and growth in the company's Process Management group.
Keywords:Emerson, process management, industrial automation
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Industrial conglomerate Emerson Electric Co. soared through its 2007 second quarter with double-digit increases in sales, orders, and earnings, driven primarily by growth of international business within the company's Process Management, Industrial Automation, and Network Power groups.

The St. Louis-based company announced 14% increases in both net sales and earnings for its second quarter, ended March 31, 2007. Net earnings of $494 million, or $0.61 per share, on sales of $5.5 billion were up from the $434 million net earnings, or $0.52 per share, on sales of $4.9 billion reported in the prior-year period.

Emerson's Process Management group reported that sales grew by 18%, which included an underlying sales increase of 11%, the favorable impact of currency translation (3%), and acquisitions (4%). Process Management orders rose at a double-digit rate in the quarter as strong capital spending in global energy markets continued to drive growth. For example, a key Emerson win in the second quarter came from Qatargas Operating Co. Ltd., (Dahar, Qatar), which selected Emerson Process Management as its supplier for oil, gas, and liquefied natural gas facilities. The deal's actual value was not disclosed.

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