Emerson earnings decline but sales up by 10 percent
Emerson announced third-quarter net sales of $4.0 billion were up 10 percent from $3.7 billion in the same period last year.
Underlying sales were up 4 percent, while acquisitions added 7 percent and unfavorable currency negatively impacted results by 1 percent.
Net earnings of $425 million, or 63 cents per share, decreased from $489 million, or 68 cents, in last year's third quarter.
The third quarter results reflected a return to growth for the company as both platforms delivered net and underlying sales growth and had high-single digit order rates in the quarter, the company said. Automation Solutions net and underlying sales turned positive in the quarter, driven by favorable trends in energy related, hybrid and general industrial markets. Growth in Commercial & Residential Solutions was driven by strong demand in HVAC and refrigeration markets and favorable construction markets in North America, Asia and Europe.
“The third quarter continued the momentum we established in the first half of the year as sales held above anticipated levels and we generated strong cash flow from continuing operations, reflecting our disciplined approach to operating the business,” said chairman and chief executive officer David N. Farr. “Demand in the quarter was broad-based, driven by a mix of increasingly favorable global market conditions, and drove order rates and underlying sales growth across both platforms.”
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