Emerson announced the first quarter of fiscal 2014

  • Detail

Emerson announced the results of the first quarter of fiscal 2014

earnings per share of $0.65, an increase of 5%; If the acquisition cost of US $0.02 is not considered, the earnings per share will be US $0.67

St. Louis, Missouri (February 4, 2014). Emerson company (NYSE: EMR) today announced that the company's net sales increased by 1% in the first quarter ending December 31, 2013. The basic sales increased by 3%, of which the divestiture of assets brought a negative impact of 3% on the speed control of the moving beam of the experimental machine, and the merger and acquisition brought a positive impact of 1%. Global market conditions reflect the slowly improving business investment and the complex needs of various industries. Among them, the US market increased by 3%, Asia by 10%, and Europe was flat year-on-year. The Chinese market grew by 14%, leading the strong growth trend of emerging markets

in the past quarter, the growth has been in line with the pace of order improvement, which is in line with our expectations, said David n. Farr, chairman and CEO of Emerson. Although the performance of different markets varies, the overall global demand reflects the slowly improving business confidence and macroeconomic situation, especially in Europe. We will continue to see encouraging progress in strategic growth projects, especially in emerging markets, which will bring good opportunities for future investment

the rate of return remained strong, with the growth of the total profit margin and the profit margin of business units making the EPS reach US $0.65, an increase of 5% year-on-year. If we don't take into account the company's expenses arising from the merger and acquisition of Virgo and enardo previously announced, earnings per share increased by 8% to $0.67. The company's expenses also reflect the pre tax expenses of $30million related to the rapid growth of charitable donations, which brings tax benefits that are sufficient to offset the adverse effects

operating cash flow was $691million, an increase of 8%, which laid a solid foundation for the growth of cash flow in this fiscal year. Capital development in this quarter focused on strategic mergers and acquisitions, of which $576million was invested in the transactions mentioned above, and $574million was used to repurchase minority interests in Appleton group, which ended in the second quarter of the previous fiscal year. Up to now, the total M & A expenditure has reached US $1.2 billion

in this quarter, we implemented a number of important portfolio management priorities, including completing the divestiture of embedded computing and power, enhancing the strength of process management through the merger and acquisition of Virgo and enardo, and acquiring the full equity of Appleton group (EGS electric, a joint venture with SPX previously), said fan Dawei. These changes support our continued efforts to promote Emerson's basic growth. In addition, we have increased the capture of strategic opportunities, so as to generate sales synergy among various businesses of the company

business highlights

the net sales of process management business increased by 8% in this quarter, thanks to the continued strength of the global energy and chemical market. Basic sales increased by 5%, of which the nearly double-digit revenue of systems and solutions business led the growth, while mergers and acquisitions contributed 3%. The U.S. market resumed growth, with sales increasing by 6%; The Asian market grew by 14%, with strong growth in all businesses in China. Strong project implementation in the North Sea region contributed to a 3% growth in the European market. The business profit margin increased by 70 basis points to 18.3%. The process automation market continues to maintain a high level of investment, accompanied by strong project momentum, especially in the North American market

the net sales of industrial automation business increased by 1% in this quarter, which is attributed to the positive impact of 1% brought by the exchange rate. Basic sales were flat year-on-year, of which the U.S. market was flat year-on-year, with an increase of 9% in Asia and a decrease of 5% in Europe, while the pace of recovery of industrial products remained slow and uneven. The growth of fluid automation, motor and drive, power distribution and material connection businesses was offset by weak demand in the power transmission market. The alternator business was flat year-on-year, reflecting the stable but weak market demand after a long recession. The profit margin of this business decreased slightly to 14.1%. The global industrial market is expected to recover with the slowly improving macroeconomic environment, contributing to the prospect of moderate growth

the net sales of network energy business in this quarter decreased by 11%, and the basic sales increased by 2%. This does not include the negative impact of 12% caused by the divestiture of embedded computing and power business completed at the end of November, as well as the negative impact of 1% caused by the exchange rate. Basic sales in the United States and Asia increased by 2%, while the European market achieved a slight rise, thanks to the strong growth of the global telecommunications infrastructure market. The demand for data center technology is complex and volatile, with the strength of the European market offset by the sluggish market conditions in Asia and the Americas. The profit margin of this business fell to 6.4%, which was mainly attributed to the R & D credit of the previous fiscal year. Driven by the recovery of the European market and the strong Asian market, the market is expected to pick up in the near future

the net sales and basic sales of the environmental optimization technology business increased by 5% in this quarter, led by the strong demand of the transportation refrigeration business and the stable market conditions of the air conditioning market. Sales in the United States decreased slightly, including double-digit growth in temperature control sales, but the on-site service business continued to be depressed, while the demand for air conditioning business was sluggish after the medium double-digit growth in the previous fiscal year. The Asian market increased by 13%, of which the Chinese market increased by more than 20%. The strong momentum is mainly concentrated in the air conditioning and refrigeration business. Europe grew by 5%, thanks to the recovery of the refrigeration market. The profit margin of this business increased by 20 basis points to 13.6%. The order growth of 8% in this quarter has not been for many periods, making the global market achieve sustained and moderate growth, with Asia and Europe leading the growth

the net sales and basic sales of commercial and residential solutions business increased by 3%, of which the U.S. market increased by 2% and international sales increased by 6%. Professional tools, food waste treatment can not see the problem in a short time, and the storage business leads the growth. Market conditions are expected to continue to be optimistic in the near future, with the U.S. civil business market continuing to strengthen

outlook for fiscal year 2014

in the past few months, the growth rate of basic orders has been between 3% and 4%, indicating that the macroeconomic environment has slowly improved but is still full of uncertainty. Emerson's outlook for fiscal year 2014 remains unchanged, in which the basic sales will increase by 3% to 5%, and the net sales are expected to be adjusted from (1) to 1%, taking into account the impact of mergers and acquisitions, divestitures and exchange rates. The profit margin is expected to increase by about half a percentage point, of which the benefits from the change of product portfolio and the leverage effect of sales volume are partially offset by the accelerated strategic investment. If the expenses arising from goodwill impairment and income tax repatriation are not included, earnings per share is expected to increase by 4% to 7%, that is, based on the reported data, by 33% to 38%

latest investor activity

at 2:00 p.m. Eastern time on February 4, 2014, 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 Thursday, February 13, 2014, Emerson's senior management will hold the company's annual investor meeting in Boston, the United States, which will last from 9:00 a.m. to about 12:30 p.m. Eastern time. 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

forward looking and warning notes

the actual thermal insulation performance of this draft is far from reaching the theoretical effect. Some non actual recorded statements should be understood as forward-looking statements, including risks and uncertainties. Emerson has no obligation to update the statements to reflect future development. These factors include our ability to complete embedded computing and power business transactions, as well as economic and monetary conditions, market demand, product pricing, competition and technical factors, as well as other risks and uncertainties described in the company's recent annual report based on form 10-K and subsequent reports to the U.S. Securities and Exchange Commission

Copyright © 2011 JIN SHI