Emerson ends fiscal year with 8 percent sales gain
Emerson reported that its fourth quarter net sales of $5.4 billion were up 8 percent compared to $4.9 billion in the same period last year.
Net earnings of $740 million, or $1.24 per diluted share, improved from earnings of $670 million, or $1.11, in last year's fourth quarter.
The Americas were up 17 percent, Europe was up 3 percent, and Asia, Middle East & Africa was up 7 percent. China was up 9 percent. Full year net sales were up 8 percent and underlying sales were up 9 percent. The Americas were up 14 percent, Europe was up 2 percent, and Asia, Middle East & Africa was up 5 percent. China was up 7 percent.
For the full year, net sales of $19.6 billion increased by 8 percent from $18.2 billion the previous year. Net income of $3.2 billion, or $5.41 per diluted share, improved from earnings of $2.3 billion, or $3.82, the previous year.
The company also announced that it plans to sell a majority stake in its Climate Technologies business to private equity funds managed by Blackstone in a transaction valuing Climate Technologies at $14.0 billion. The standalone Climate Technologies business includes the Copeland compressor business and the entire portfolio of products and services across all HVAC and refrigeration end-markets, representing approximately $5.0 billion of fiscal 2022 sales.
“Fiscal 2022 was a transformational year for Emerson. We made significant progress on our portfolio and culture transformation while maintaining our world-class operational execution,” said Lal Karsanbhai, Emerson president and chief executive officer. “Today's announcement to divest the Climate Technologies business is a critical milestone in positioning Emerson to be a global pure-play automation leader. We are energized by the growth and value creation opportunities enabled by our leading capabilities in intelligent devices, control systems and software.”
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