Emerson sales decline 9 percent
Emerson reported fiscal 2016 sales of $20.2 billion declined 9 percent as the company faced difficult conditions in key served markets, which have continued for seven consecutive quarters.
Underlying sales declined 6 percent excluding unfavorable currency translation of 2 percent and an impact from divestitures, net of acquisitions of 1 percent. The fourth quarter and full year results reflected the negative impact of low oil and gas prices, weak industrial and emerging market business spending, and global economic uncertainty. Sales were down in all segments and all regions.
Net sales in the fourth quarter of $5.5 billion were down 6 percent.
Reported earnings per share decreased 37 percent to $2.52. Fourth quarter earnings per share decreased 31 percent to 68 cents.
"Fiscal 2016 was a significantly more challenging year than expected," said chairman and chief executive officer David N. Farr. "When we determined the anticipated second half recovery in our businesses would not materialize, we took the necessary, and often difficult, actions required to bring our cost structure in line with current business conditions and trends. In 2016, we spent $112 million for restructuring which increased our two-year total restructuring spend to $333 million. By focusing on the things under our control we were able to limit the impact on operating margin to 40 basis points during this difficult year."