Emerson Reports First-Quarter Operating Profits
Emerson (St. Louis, MO) announced that for the first quarter of fiscal 2003, ended December 31, 2002, the company achieved sales of $3.2 billion, earnings of $217 million, and diluted earnings per share of $0.52. First-quarter sales in fiscal 2002 were $3.3 billion with earnings of $255 million and diluted earnings per share of $0.61, excluding the non-cash accounting change related to the adoption of FAS 142 for goodwill during the quarter. Including the accounting change, for the first fiscal quarter of 2002 the company reported a net loss of $683 million, or $1.62 per share.
Consolidated operating profit for the quarter increased one percent, or $3.6 million, and the operating margin increased 30 basis points despite lower sales, reflecting the benefits of Emerson's restructuring initiatives. Excluding gains from divestitures, earnings per share for the quarter were up over the first quarter of 2002. First-quarter fiscal 2003 gains from divestitures were down $70 million, or $0.12 per share, from the first-quarter of 2002. Ongoing restructuring costs were $29 million, down from $53 million in the first quarter of 2002, but still slightly higher than historical levels given the continued weak global markets.