Emerson Electric Co. (NYSE:EMR) lost ground on Tuesday, following the release of fourth-quarter and full-year figures.
Net sales in the final quarter of the fiscal year proved to be $5.0 billion, and increased 2%; with underlying sales up 3%. Fourth-quarter EPS of $1.16, which included discrete tax benefits of nine cents. Fourth-quarter operating cash flow of $1.2 billion, up 18%.
The St. Louis-based company said growth was in line with management expectations for Automation Solutions but below expectations for Commercial & Residential Solutions, due to cooler weather conditions in North America that unfavorably impacted air conditioning and construction markets and continued sluggishness in Asian markets.
Fourth-quarter gross profit margin of 42.8% was up 70 basis points compared with the prior year, primarily due to solid operational execution and favorable price-cost. Pretax margin of 16.6% and EBIT margin of 17.4% were up 150 and 140 basis points, respectively.
GAAP earnings per share were $1.16 in the quarter, up 20% versus the prior year, and were $1.07, up 20%, excluding discrete tax benefits of $0.09 this year and $0.08 in the prior year.
According to CEO David Farr, "Emerson delivered a solid year, despite a lower growth environment than we anticipated.
"We grew above our markets, delivered strong earnings and cash flow, and returned $2.5 billion to our shareholders. We plan to announce a four-cent dividend increase for 2020, which is higher than recent increases, and we plan greater increases as our dividend to free cash flow ratio improves below 50% in future years.
Shares retreated $1.04, or 1.4%, to $72.18
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