Emerson (NYSE: EMR), St. Louis, MO, reported sales for the second quarter ended March 31, 2011, were $5.9 billion, an increase of 18 percent from the prior-year period.
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Organic sales increased 14 percent, acquisitions added 3 percent and currency translation added 1 percent. Growth was strong across all global markets with underlying sales increasing 13 percent in the U.S., 17 percent in Europe, and 10 percent in Asia.
Emerson reported that "pricing actions have started to take hold and positive price was realized in the quarter, however commodity costs were a headwind as global inflation persisted causing a negative price/cost quarter."
Process Management sales increased 16 percent during the quarter. Underlying sales increased 14 percent and currency added 2 percent. The global footprint of Process Management continued to expand with the recently announced Fisher Sanmar joint venture buyout that strengthens Emerson's position in India and the Middle East.
Industrial Automation reported a sales increase of 30 percent, reflecting a 30 percent increase in underlying sales. Sales growth was solid across all businesses, led by the electrical drives and power generating alternators businesses. Volatile material prices were offset by increased pricing.
Network Power sales grew 20 percent in the quarter. Underlying sales increased 8 percent, the Chloride acquisition added 11 percent and currency added 1 percent. Solid growth continued globally, with the U.S. up 5 percent, Europe up 4 percent, Asia up 6 percent and Latin America up 34 percent.
Climate Technologies sales grew 12 percent in the quarter, including an 11 percent increase in underlying sales and a 1 percent favorable impact from acquisitions. Sales in the U.S. increased 14 percent with strength in residential and refrigeration end markets. The U.S. market should remain solid for the second half of the year. Europe increased 5 percent and Asia growth remained solid at 6 percent against a very difficult prior year comparison in China. Significant material inflation was offset by increased pricing, but price/cost still remains a challenge, according to Emerson.
Tools and Storage sales increased 8 percent in the quarter, which included a 7 percent underlying sales increase and a 1 percent favorable impact from currency translation. Sales growth continued to be led by the professional tools, storage and disposer businesses. Residential end markets continued to remain very weak and at historic lows, according to Emerson.