EX-99.1
Published on November 2, 2010
 Media
Contact: Mark Polzin (314)
982-1758
|
EMERSON
REPORTS FULL YEAR AND FOURTH QUARTER 2010 RESULTS
Fiscal
2010 Highlights:
|
|
·
|
Sales
up 5 percent to $21.0 billion
|
|
|
·
|
Net
earnings per share of $2.84
|
|
|
·
|
Return
on total capital of 18.9 percent
|
|
|
·
|
Operating
cash flow of $3.3 billion, up 7 percent and free cash flow of $2.8
billion, up 8 percent
|
|
|
·
|
Quarterly
dividend expected to increase to $0.345 per
share
|
ST.
LOUIS, November 2, 2010 – Emerson (NYSE: EMR) today announced that net sales for
fiscal 2010 increased 5 percent to $21.0 billion. Underlying sales
declined 1 percent, currency translation added 2 percent and acquisitions added
4 percent. Emerging market sales hit record levels of 34 percent of
sales and international sales were 57 percent of total sales. Gross
profit margin expanded 2.0 points to a record 39.6 percent for the year and
operating profit margin reached 16.7 percent. Pretax earnings margin
was 13.7 percent. Earnings per share from continuing operations grew
15 percent to $2.60, which includes a negative $0.04 impact from the Chloride
Group PLC acquisition and a negative $0.05 impact from the reclassification of
the appliance motors and U.S. commercial and industrial motors businesses
(“Motors”) to discontinued operations. Net earnings per share
increased 25 percent to $2.84, and includes a $0.20 gain from the sale of Motors
and a positive $0.04 impact from the results of divested businesses. (See Table
7 attached)
“Because
of the work accomplished during the downturn, we had a strong finish to the
year. Our September order trends accelerated to 18 percent and reveal
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Two
tremendous
momentum heading into fiscal 2011,” said Chairman and CEO David N.
Farr. “We are proud of our employees’ accomplishments and the results
we
delivered. Looking ahead, 2011 should be an even stronger
year.”
Net sales
for the fourth quarter ended September 30, 2010, were $5.8 billion, an increase
of 14 percent from the prior year quarter. Underlying sales in the
quarter increased 12 percent, which excludes a 3 percent impact from
acquisitions and a 1 percent unfavorable impact from currency exchange
rates. Growth was solid across all global
markets. Underlying sales in the quarter grew 9 percent in the U.S.,
14 percent in Asia, 15 percent in Europe and 11 percent in Latin
America.
Fourth
quarter earnings per share from continuing operations increased 12 percent to
$0.75 which includes a negative $0.04 impact from the Chloride Group PLC
acquisition and a negative $0.02 impact from the reclassification of Motors to
discontinued operations. Net earnings per share for the fourth
quarter increased 46 percent to $0.98. The results for the quarter
include a $0.20 gain from the sale of Motors, the positive $0.02 impact from
operating results for Motors, and a positive $0.01 impact from
LANDesk.
“Our
fourth quarter results reflect continued strengthening in the global economy and
improved demand for Emerson’s products,” Farr said. “Businesses are
spending again. That’s good for Emerson. In the midst of
the harsh economic downturn of the past couple of years, we did what we’ve done
before. We repositioned the company to be stronger than ever before
and to benefit from what we expect to be a slow but steady economic
recovery.”
Balance Sheet / Cash
Flow
Operating
cash flow was strong at $3.3 billion in 2010, representing 15.6 percent of sales
and an increase of 7 percent from 2009. Capital expenditures were
$524 million, resulting in record free cash flow (operating cash flow less
capital expenditures) of $2.8
billion. Free cash flow was 128 percent of net earnings common
stockholders, the 10th
consecutive year in excess of 100 percent. Trade working capital as a
percent
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Three
of sales showed substantial improvement, as it declined from 19.0
percent in fiscal 2009 to 16.8 percent in fiscal 2010.
Fiscal
year 2010 was Emerson’s 54th
consecutive year of increased dividends per share. The Board of
Directors is expected today to increase the quarterly cash dividend
from thirty-three and one-half cents ($0.335) to thirty-four and one-half cents
($0.345) per share of common stock, an increase of 3.0 percent. The
new dividend is expected to be payable on December 10, 2010 to shareholders of
record on November 12, 2010.
“Cash
flow from operations in 2010 essentially matched our record level in 2008 on
lower sales and earnings. We are especially pleased with that
outcome. We will continue to stay the course and take steps to ensure
that generating abundant free cash flow remains one of our four highest
priorities and consistent achievements to create long-term value,” Farr
said. “Strong free cash flow allows us to control our destiny and
invest in emerging markets and innovative technology to fuel Emerson’s growth
and create value for our customers and shareholders.”
Business Segment
Highlights
Process Management sales
continued to strengthen and were up 5 percent in the
quarter. Underlying sales increased 5 percent, acquisitions added 1
percent and unfavorable currency subtracted 1 percent. Orders
strengthened in the trailing three-month period, driven by our strong global
positioning and technology leadership. Segment margin increased to
19.1 percent, expanding 1.6 points from 17.5 percent in the prior year quarter,
driven primarily by cost reductions, lower restructuring expense and volume
leverage. Based on Process Management’s advanced technologies and
industry
expertise, it was recently awarded a $28 million automation contract to
modernize 100 hydroelectric turbine generators in Ukraine.
Industrial Automation had
strong performance in the quarter, with sales increasing 23 percent including an
underlying sales increase of 26 percent, a 4 percent unfavorable
impact from currency and a 1 percent favorable impact from
acquisitions. Recently, Emerson won a major contract to provide power
inverters and plant-wide
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Four
controls
for what will be California’s largest photovoltaic facility. This
project leverages the great technology across Industrial Automation and Process
Management to provide a comprehensive solution to our customer’s toughest
challenges. Segment margin expanded
6.0 points to 16.3 percent, driven by positive impacts from volume leverage,
aggressive cost reduction actions and reduced restructuring. The
hermetic motors business ($545 million in sales for 2010 and $474 million in
sales for 2009), which formerly reported through Appliance and Tools has been
moved to the Industrial Automation segment. Prior periods have been
reclassified to reflect this change.
Network Power’s strong global
growth and acquisitions drove sales higher by 23 percent in the quarter,
including underlying sales that increased 12 percent. The Avocent and
Chloride acquisitions had a favorable impact of 11 percent. Sales in
Asia expanded 20 percent in the quarter, along with solid growth in the U.S. and
Europe of 6 percent and 14 percent, respectively. Segment margin
expanded 1.9 points to 15.2 percent reflecting benefits from volume leverage,
aggressive cost repositioning actions and lower restructuring expense that was
partially offset by lower price and unfavorable mix.
Climate Technologies sales
increased 10 percent in the quarter with 11 percent underlying sales growth and
a 1 percent unfavorable impact from currency. Sales in the U.S. grew
5 percent, Europe grew 13 percent and Asia grew 28 percent. The U.S.
residential air conditioning business declined as inventory corrections took
place in the quarter. Commercial air conditioning sales increased,
driven by penetration gains and favorable mix from higher technology product
sales. Refrigeration remained strong globally in both stationary and
transport end markets. Margin
increased 2.4 points to 19.2 percent driven by volume leverage, increased
technology based products, decreased restructuring expense and cost
reductions.
Tools and Storage sales were
up 2 percent in the quarter, reflecting flat underlying sales and a 2 percent
favorable impact from acquisitions. Strength in the tools and
disposer businesses was offset by residential storage
weakness. Segment margin
was 20.7 percent, a 0.1 point decline from the prior year quarter. In
conjunction with the sale of Motors, prior results for this segment have been
adjusted to reflect
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Five
the reclassification of these
businesses into discontinued operations. This segment has been
renamed Tools and Storage (formerly Appliance and Tools). The
retained hermetic motors business has been moved into Industrial
Automation.
Fiscal 2011
Outlook
Emerson
is well positioned for the continuing recovery as we move into
2011. End markets continue to improve as evidenced by order trends
strengthening and backlog expanding 18 percent in the past year. The
combination of our completed cost-repositioning efforts, new product and
technology launches, geographic balance, emerging market footprint and portfolio
mix, position Emerson to have another strong year in 2011.
Our
initial view of 2011 is:
|
|
·
|
Underlying
sales growth 7 to 10 percent
|
|
|
·
|
Reported
sales growth 12 to 15 percent
|
|
|
·
|
Operating
profit margin in the range of 17.2 to 17.5
percent
|
|
|
·
|
Operating
cash flow in the $3.4 to $3.5 billion
range
|
|
|
·
|
Pretax
margin in the range of 14.2 to 14.7
percent.
|
Emerson
will provide expanded insights on full year 2011 expectations at our annual
investment community conference in February 2011.
Upcoming Investor
Events
Today at
2:00 p.m. EDT (1:00 p.m. CDT), Emerson senior management will discuss the fourth
quarter and full year results during an investor conference call. All
interested parties may listen to the live conference call via the Internet by
going to the Investor Relations area of Emerson's website at www.Emerson.com/financial
and completing
a brief registration form. A replay of the conference call will be
available for the next three months at the same location on the
website.
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Six
On
February 3 and 4, 2011, Emerson senior management will host the company’s annual
investment community update meeting in St. Louis at Emerson’s global
headquarters. Additional details will be available in
December.
Details
of upcoming events will be posted as they occur on the Events Calendar in the
Investor Relations section of the website.
Forward-Looking and
Cautionary Statements
Statements
in this release that are not strictly historical may be “forward-looking”
statements, which involve risks and uncertainties, and Emerson undertakes no
obligation to update any such statements to reflect later
developments. These risks and uncertainties include economic and
currency conditions, market demand, pricing, and
competitive and technological factors, among others, as set forth in the
company's most recent Form 10-K filed with the SEC. The company
expects to file its Form 10-K for fiscal 2010 within the next 30
days.
(tables
attached)
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Seven
TABLE 1
EMERSON
AND SUBSIDIARIES
CONSOLIDATED
OPERATING RESULTS
(AMOUNTS
IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
|
Quarter Ended September 30,
|
Percent
|
|||||||||||
|
2009
|
2010
|
Change
|
||||||||||
|
Net
sales
|
$ | 5,130 | $ | 5,841 | 14 | % | ||||||
|
Less: Costs
and expenses
|
||||||||||||
|
Cost
of sales
|
3,134 | 3,510 | ||||||||||
|
SG&A
expenses
|
1,103 | 1,312 | ||||||||||
|
Other
deductions, net
|
162 | 116 | ||||||||||
|
Interest
expense, net
|
63 | 65 | ||||||||||
|
Earnings
from continuing operations before income taxes
|
668 | 838 | 26 | % | ||||||||
|
Income
taxes
|
150 | 254 | ||||||||||
|
Earnings
from continuing operations
|
518 | 584 | 13 | % | ||||||||
|
Discontinued
operations, net of tax
|
2 | 177 | ||||||||||
|
Net
earnings
|
520 | 761 | 47 | % | ||||||||
|
Less:
noncontrolling interests in earnings of subsidiaries
|
14 | 12 | ||||||||||
|
Net
earnings common stockholders
|
$ | 506 | $ | 749 | 48 | % | ||||||
|
Earnings
common stockholders:
|
||||||||||||
|
Earnings
from continuing operations
|
$ | 504 | $ | 572 | ||||||||
|
Discontinued
operations, net of tax
|
2 | 177 | ||||||||||
|
Net
earnings common stockholders
|
$ | 506 | $ | 749 | ||||||||
|
Diluted
earnings per share common stockholders:
|
||||||||||||
|
Earnings
from continuing operations
|
$ | 0.67 | $ | 0.75 | 12 | % | ||||||
|
Discontinued
operations
|
- | 0.23 | ||||||||||
|
Diluted
earnings per common share
|
$ | 0.67 | $ | 0.98 | 46 | % | ||||||
|
Diluted
average shares outstanding
|
755.3 | 757.4 | ||||||||||
|
Quarter Ended September 30,
|
||||||||||||
|
2009
|
2010
|
|||||||||||
|
Other
deductions, net
|
||||||||||||
|
Rationalization
of operations
|
$ | 103 | $ | 25 | ||||||||
|
Amortization
of intangibles
|
30 | 52 | ||||||||||
|
Other
|
33 | 40 | ||||||||||
|
Gains,
net
|
(4 | ) | (1 | ) | ||||||||
|
Total
|
$ | 162 | $ | 116 | ||||||||
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TABLE 2
EMERSON
AND SUBSIDIARIES
CONSOLIDATED
OPERATING RESULTS
(AMOUNTS
IN MILLIONS EXCEPT PER SHARE, UNAUDITED)
|
Year Ended September 30,
|
Percent
|
|||||||||||
|
2009
|
2010
|
Change
|
||||||||||
|
Net
sales
|
$ | 20,102 | $ | 21,039 | 5 | % | ||||||
|
Less: Costs
and expenses
|
||||||||||||
|
Cost
of sales
|
12,542 | 12,713 | ||||||||||
|
SG&A
expenses
|
4,416 | 4,817 | ||||||||||
|
Other
deductions, net
|
474 | 369 | ||||||||||
|
Interest
expense, net
|
220 | 261 | ||||||||||
|
Earnings
from continuing operations before income taxes
|
2,450 | 2,879 | 18 | % | ||||||||
|
Income
taxes
|
688 | 848 | ||||||||||
|
Earnings
from continuing operations
|
1,762 | 2,031 | 15 | % | ||||||||
|
Discontinued
operations, net of tax
|
9 | 186 | ||||||||||
|
Net
earnings
|
1,771 | 2,217 | 25 | % | ||||||||
|
Less:
noncontrolling interests in earnings of subsidiaries
|
47 | 53 | ||||||||||
|
Net
earnings common stockholders
|
$ | 1,724 | $ | 2,164 | 26 | % | ||||||
|
Earnings
common stockholders:
|
||||||||||||
|
Earnings
from continuing operations
|
$ | 1,715 | $ | 1,978 | ||||||||
|
Discontinued
operations, net of tax
|
9 | 186 | ||||||||||
|
Net
earnings common stockholders
|
$ | 1,724 | $ | 2,164 | ||||||||
|
Diluted
earnings per share common stockholders:
|
||||||||||||
|
Earnings
from continuing operations
|
$ | 2.26 | $ | 2.60 | 15 | % | ||||||
|
Discontinued
operations
|
0.01 | 0.24 | ||||||||||
|
Diluted
earnings per common share
|
$ | 2.27 | $ | 2.84 | 25 | % | ||||||
|
Diluted
average shares outstanding
|
758.7 | 757.0 | ||||||||||
|
Year Ended September 30,
|
||||||||||||
|
2009
|
2010
|
|||||||||||
|
Other
deductions, net
|
||||||||||||
|
Rationalization
of operations
|
$ | 284 | $ | 126 | ||||||||
|
Amortization
of intangibles
|
108 | 176 | ||||||||||
|
Other
|
121 | 71 | ||||||||||
|
Gains,
net
|
(39 | ) | (4 | ) | ||||||||
|
Total
|
$ | 474 | $ | 369 | ||||||||
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Nine
TABLE 3
EMERSON
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(DOLLARS
IN MILLIONS, UNAUDITED)
|
September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Assets
|
||||||||
|
Cash
and equivalents
|
$ | 1,560 | $ | 1,592 | ||||
|
Receivables,
net
|
3,623 | 3,989 | ||||||
|
Inventories
|
1,855 | 2,105 | ||||||
|
Other
current assets
|
615 | 677 | ||||||
|
Total
current assets
|
7,653 | 8,363 | ||||||
|
Property,
plant & equipment, net
|
3,500 | 3,287 | ||||||
|
Goodwill
|
7,078 | 8,656 | ||||||
|
Other
|
1,532 | 2,537 | ||||||
| $ | 19,763 | $ | 22,843 | |||||
|
Liabilities
and Stockholders’ Equity
|
||||||||
|
Short-term
borrowings and current maturities of long-term debt
|
$ | 577 | $ | 480 | ||||
|
Accounts
payable
|
1,949 | 2,409 | ||||||
|
Accrued
expenses
|
2,378 | 2,864 | ||||||
|
Income
taxes
|
52 | 96 | ||||||
|
Total
current liabilities
|
4,956 | 5,849 | ||||||
|
Long-term
debt
|
3,998 | 4,586 | ||||||
|
Other
liabilities
|
2,103 | 2,456 | ||||||
|
Total
equity
|
8,706 | 9,952 | ||||||
| $ | 19,763 | $ | 22,843 | |||||
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Ten
TABLE 4
EMERSON
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(DOLLARS
IN MILLIONS, UNAUDITED)
|
Year Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Operating
Activities
|
||||||||
|
Net
earnings
|
$ | 1,771 | $ | 2,217 | ||||
|
Depreciation
and amortization
|
727 | 816 | ||||||
|
Changes
in operating working capital
|
620 | 309 | ||||||
|
Pension
funding
|
(303 | ) | (247 | ) | ||||
|
Other
|
271 | 197 | ||||||
|
Net
cash provided by operating activities
|
3,086 | 3,292 | ||||||
|
Investing
Activities
|
||||||||
|
Capital
expenditures
|
(531 | ) | (524 | ) | ||||
|
Purchases
of businesses, net of cash and equivalents acquired
|
(776 | ) | (2,843 | ) | ||||
|
Divestitures
of businesses
|
4 | 846 | ||||||
|
Other
|
(6 | ) | 4 | |||||
|
Net
cash used in investing activities
|
(1,309 | ) | (2,517 | ) | ||||
|
Financing
Activities
|
||||||||
|
Net
increase in short-term borrowings
|
(684 | ) | 398 | |||||
|
Proceeds
from long-term debt
|
1,246 | 598 | ||||||
|
Principal
payments on long-term debt
|
(678 | ) | (680 | ) | ||||
|
Dividends
paid
|
(998 | ) | (1,009 | ) | ||||
|
Purchases
of treasury stock
|
(718 | ) | (100 | ) | ||||
|
Other
|
(116 | ) | 67 | |||||
|
Net
cash used in financing activities
|
(1,948 | ) | (726 | ) | ||||
|
Effect
of exchange rate changes on cash and equivalents
|
(46 | ) | (17 | ) | ||||
|
Increase
(decrease) in cash and equivalents
|
(217 | ) | 32 | |||||
|
Beginning
cash and equivalents
|
1,777 | 1,560 | ||||||
|
Ending
cash and equivalents
|
$ | 1,560 | $ | 1,592 | ||||
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Eleven
TABLE 5
EMERSON
AND SUBSIDIARIES
SEGMENT
SALES AND EARNINGS
(DOLLARS
IN MILLIONS, UNAUDITED)
|
Quarter Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Sales
|
||||||||
|
Process
Management
|
$ | 1,623 | $ | 1,701 | ||||
|
Industrial
Automation
|
946 | 1,169 | ||||||
|
Network
Power
|
1,362 | 1,678 | ||||||
|
Climate
Technologies
|
913 | 1,003 | ||||||
|
Tools
and Storage
|
438 | 447 | ||||||
| 5,282 | 5,998 | |||||||
|
Eliminations
|
(152 | ) | (157 | ) | ||||
|
Net
Sales
|
$ | 5,130 | $ | 5,841 | ||||
|
Quarter Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Earnings
|
||||||||
|
Process
Management
|
$ | 284 | $ | 325 | ||||
|
Industrial
Automation
|
97 | 190 | ||||||
|
Network
Power
|
182 | 255 | ||||||
|
Climate
Technologies
|
153 | 193 | ||||||
|
Tools
and Storage
|
91 | 93 | ||||||
| 807 | 1,056 | |||||||
|
Differences
in accounting methods
|
39 | 53 | ||||||
|
Corporate
and other (1)
|
(115 | ) | (206 | ) | ||||
|
Interest
expense, net
|
(63 | ) | (65 | ) | ||||
|
Earnings
from continuing operations before income taxes
|
$ | 668 | $ | 838 | ||||
|
Quarter Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Rationalization
of operations
|
||||||||
|
Process
Management
|
$ | 29 | $ | 13 | ||||
|
Industrial
Automation
|
21 | 4 | ||||||
|
Network
Power
|
37 | 4 | ||||||
|
Climate
Technologies
|
12 | 4 | ||||||
|
Tools
and Storage
|
4 | - | ||||||
|
Total
Emerson
|
$ | 103 | $ | 25 | ||||
(1)
Corporate and other expense in Q4FY10 includes increases of $50M of stock
compensation expense due to the overlap of two stock compensation programs and
increase in stock price during the quarter and approximately $30M of expense
related to the Chloride Group PLC acquisition over the prior year
quarter.
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Twelve
TABLE 6
EMERSON
AND SUBSIDIARIES
SEGMENT
SALES AND EARNINGS
(DOLLARS
IN MILLIONS, UNAUDITED)
|
Year Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Sales
|
||||||||
|
Process
Management
|
$ | 6,135 | $ | 6,022 | ||||
|
Industrial
Automation
|
4,172 | 4,289 | ||||||
|
Network
Power
|
5,456 | 5,828 | ||||||
|
Climate
Technologies
|
3,197 | 3,801 | ||||||
|
Tools
and Storage
|
1,725 | 1,755 | ||||||
| 20,685 | 21,695 | |||||||
|
Eliminations
|
(583 | ) | (656 | ) | ||||
|
Net
Sales
|
$ | 20,102 | $ | 21,039 | ||||
|
Year Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Earnings
|
||||||||
|
Process
Management
|
$ | 1,060 | $ | 1,093 | ||||
|
Industrial
Automation
|
470 | 591 | ||||||
|
Network
Power
|
579 | 800 | ||||||
|
Climate
Technologies
|
411 | 691 | ||||||
|
Tools
and Storage
|
276 | 357 | ||||||
| 2,796 | 3,532 | |||||||
|
Differences
in accounting methods
|
179 | 195 | ||||||
|
Corporate
and other
|
(305 | ) | (587 | ) | ||||
|
Interest
expense, net
|
(220 | ) | (261 | ) | ||||
|
Earnings
from continuing operations before income taxes
|
$ | 2,450 | $ | 2,879 | ||||
|
Year Ended September 30,
|
||||||||
|
2009
|
2010
|
|||||||
|
Rationalization
of operations
|
||||||||
|
Process
Management
|
$ | 55 | $ | 35 | ||||
|
Industrial
Automation
|
47 | 48 | ||||||
|
Network
Power
|
118 | 25 | ||||||
|
Climate
Technologies
|
48 | 13 | ||||||
|
Tools
and Storage
|
16 | 5 | ||||||
|
Total
Emerson
|
$ | 284 | $ | 126 | ||||
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Thirteen
TABLE 7
EARNINGS
PER SHARE IMPACT
OF
ACQUISITION AND DIVESTITURES
|
Q4 FY2010
Actual
|
FY2010
Actual
|
FY2010
August
Guidance
|
||||||||||
|
Adjusted
earnings per share from continuing
operations (Non-GAAP)
|
$ | 0.81 | $ | 2.69 |
$
2.60
- $2.70
|
|||||||
|
Results
of operations for Motors moved to discontinued operations
|
(0.02 | ) | (0.05 | ) | ||||||||
|
Chloride
Group PLC acquisition
|
(0.04 | ) | (0.04 | ) | ||||||||
|
Earnings
per share from continuing operations common stockholders
|
$ | 0.75 | $ | 2.60 | ||||||||
|
Results
of operations for Motors moved to discontinued operations
|
0.02 | 0.05 | ||||||||||
|
Gain
from Motors divestiture
|
0.20 | 0.20 | ||||||||||
|
LANDesk
impact
|
0.01 | (0.01 | ) | |||||||||
|
Net
earnings per share common stockholders
|
$ | 0.98 | $ | 2.84 | ||||||||
- more
- -
Page
Fourteen
TABLE 8
Reconciliations of Non-GAAP
Financial Measures
The
following reconciles Non-GAAP measures with the most directly comparable GAAP
measure (dollars
in millions):
|
Forecast
FY2011 Net Sales
|
||||
|
Underlying
Sales (Non-GAAP)
|
+7%
to +10%
|
|||
|
Acq./Div./Currency
|
+5
pts
|
|||
|
Net
Sales
|
+12%
to +15%
|
|||
|
Forecast
FY2011 Operating Profit
|
||||
|
Operating
Profit (Non-GAAP)
|
~$4,035
– 4,210
|
|||
|
Operating
Profit Margin % (Non-GAAP)
|
17.2% - 17.5 | % | ||
|
Interest
Expense and Other Deduction, Net
|
~($670
- 700
|
) | ||
|
Pretax
Earnings
|
~
$3,335 – 3,540
|
|||
|
Pretax
Earnings Margin %
|
14.2% - 14.7 | % | ||
|
FY 2009
|
FY 2010
|
|||||||
|
Operating
Profit
|
||||||||
|
Operating
Profit (Non-GAAP)
|
$ | 3,144 | $ | 3,509 | ||||
|
Operating
Profit Margin % (Non-GAAP)
|
15.6 | % | 16.7 | % | ||||
|
Other
Deduction, Net
|
474 | 369 | ||||||
|
Interest
Expense, Net
|
220 | 261 | ||||||
|
Pretax
Earnings
|
$ | 2,450 | $ | 2,879 | ||||
|
Pretax
Earnings Margin %
|
12.2 | % | 13.7 | % | ||||
|
FY 2009
|
FY 2010
|
|||||||
|
Cash
Flow
|
||||||||
|
Operating
Cash Flow
|
$ | 3,086 | $ | 3,292 | ||||
|
Capital
Expenditures
|
531 | 524 | ||||||
|
Free
Cash Flow (Non-GAAP)
|
$ | 2,555 | $ | 2,768 | ||||
|
Net
Earnings Common Stockholders
|
$ | 2,164 | ||||||
|
%
of Net Earnings
|
||||||||
|
Operating
Cash Flow
|
152 | % | ||||||
|
Capital
Expenditures
|
(24 | )% | ||||||
|
Free
Cash Flow (Non-GAAP)
|
128 | % | ||||||
###