Emerson, St. Louis, MO, reported sales for the second quarter ended March 31, 2008 of $6 billion, an increase of 12%. Underlying sales increased 6% in the quarter, which excludes the impact of favorable foreign currency exchange rates (4%) and impact from acquisitions, net of divestitures (2%).
Strong international results led the growth, where sales increased by 10% on an underlying basis. Regional underlying sales growth included increases of 18% in both Asia and Latin America and 19% in Middle East/Africa. Underlying sales in the U.S. softened and were up 1%.
Process Management underlying sales grew 16%, led by strength in global energy sectors and continued project wins in a range of industries. Reported sales included a favorable 5% impact from currency and a negative 2% impact from divestitures, net of an acquisition. During the quarter, major project awards were announced to digitally automate the smelter expansion for the largest copper producer in China as well as new power plants in the U.S.
Industrial Automation revenues increased 11% in the quarter with 5% underlying sales growth. Sales growth was balanced geographically, with underlying growth in the U.S. at 4% and international at 5%.
Network Power sales grew 27% in the quarter, which included underlying sales growth of 11%, a favorable impact of 12% from acquisitions, and 4% from currency translation. The core uninterruptible power supply (UPS), precision cooling and China power systems businesses led the growth.
Climate Technologies sales increased 1% in the second quarter. Underlying sales decreased 2% with weakness in the U.S. and Europe offsetting strength in Asia. Reported sales included 3% favorable currency translation.
Appliance and Tools sales decreased 6% in the quarter. Underlying sales decreased 6%, with currency translation adding 1% and divestitures subtracting 1%. Weakness in consumer spending and residential investment continued to contribute to the negative underlying sales growth.