Emerson (St. Louis, MO) announced that net sales for the second quarter of fiscal 2004, which ended March 31, 2004, increased 11 percent to $3,859 million, from $3,465 million in the second quarter of fiscal 2003. Underlying sales, which are adjusted to remove the impact of exchange rates, acquisitions and divestitures, were up seven percent for the quarter, driven by the combination of improved market conditions and Emerson's market penetration gains. Net earnings per share increased 34 percent to $0.75, from $0.56 in the prior-year period.
Operating cash flow for the second quarter of 2004 increased 21 percent to $451 million, from $374 million in the prior-year period, and free cash flow also increased 21 percent, to $371 million. Even with the strong sales growth, the ratio of trade working capital to sales improved to 20.1 percent in the second quarter from 21.6 percent in the prior year, demonstrating the continued success of Emerson's capital efficiency initiatives.
