Emerson 2009 Annual Report Download - page 14

Emerson 200912
exclude acquisitions, divestitures and foreign currency
translation), a 4 percent ($933 million) unfavorable
impact from foreign currency translation and a 1 percent
($131 million) contribution from acquisitions. The under-
lying sales decrease for scal 2009 included an 18 percent
decrease in the United States and a 9 percent decrease
internationally, composed of Europe (16 percent), Latin
America (7 percent), Middle East/Africa (6 percent), Asia
(2 percent) and Canada (6 percent). The Company esti-
mates that the underlying sales decline primarily reects
an approximate 14 percent decline from volume and an
approximate 1 percent impact from higher pricing.
Net sales for scal 2008 were $24.8 billion, an increase
of approximately $2.7 billion, or 12 percent, over scal
2007, with international sales leading overall growth.
Consolidated sales results reect increases in four of the
Company’s ve business segments with an approximate
7 percent ($1,523 million) increase in underlying sales, a
4 percent ($809 million) favorable impact from foreign
currency translation and a 1 percent ($344 million) contri-
bution from acquisitions, net of divestitures. The Network
Power, Process Management and Industrial Automa-
tion businesses drove sales growth, while the Appliance
and Tools and Climate Technologies businesses were
impacted by the U.S. consumer spending slowdown. The
underlying sales increase for scal 2008 was driven by an
international sales increase of more than 10 percent plus
a 3 percent increase in the United States. The interna-
tional sales increase primarily reects growth in Asia (17
percent), Latin America (18 percent), Middle East/Africa
(17 percent) and Europe (3 percent). The Company esti-
mates that the underlying sales growth of approximately
7 percent primarily reects an approximate 6 percent
gain from volume, aided by penetration gains, and an
approximate 1 percent impact from higher selling prices.

n United States n Asia
n Europe n Other

Emerson is a global business for which international sales
have grown over the years and now constitute 55 percent
of the Company’s total sales. The Company expects this
trend to continue due to faster economic growth in emerging
markets in Asia, Latin America and Middle East/Africa.
International destination sales, including U.S. exports,
decreased approximately 14 percent, to $11.6 billion
in 2009. U.S. exports of $1,290 million were down
16 percent compared with 2008, reecting declines in
Industrial Automation, Network Power, Climate Technol-
ogies and Process Management as these businesses were
impacted by lower volume and the stronger U.S. dollar.
International subsidiary sales, including shipments to
the United States, were $10.3 billion in 2009, down
14 percent from 2008. Excluding the 7 percent net unfa-
vorable impact from acquisitions and foreign currency
translation, international subsidiary sales decreased
7 percent compared with 2008. Underlying destination
sales declined 16 percent in Europe; 2 percent overall in
Asia, including 2 percent growth in China; 7 percent in
Latin America and 6 percent in Middle East/Africa.
International destination sales, including U.S. exports,
increased approximately 20 percent, to $13.5 billion in
2008, representing 54 percent of the Company’s total
sales. U.S. exports of $1,537 million were up 20 percent
compared with 2007, reecting strong growth in the
Network Power, Process Management and Climate
Technologies businesses, aided by the weaker U.S. dollar
as well as the benet from acquisitions. Underlying
destination sales grew 17 percent in Asia during the year,
driven mainly by 21 percent growth in China, while sales
grew 18 percent in Latin America, 17 percent in Middle
East/Africa and 3 percent in Europe. International subsid-
iary sales, including shipments to the United States, were
$12.0 billion in 2008, up 19 percent over 2007. Excluding
the 8 percent net favorable impact from acquisitions,
divestitures and foreign currency translation, interna-
tional subsidiary sales increased 11 percent compared
with 2007.

The Company acquired Roxar ASA, Trident Powercraft
Private Limited, System Plast S.p.A. and several smaller
businesses during 2009. Roxar supplies measure-
ment solutions and software for reservoir production
optimization, enhanced oil and gas recovery and ow
assurance. Trident Power manufactures and supplies
power generating alternators and associated products.
System Plast manufactures engineered modular belts and
custom conveyer components for food processing and
packaging industries. Total cash paid for these businesses
           
13%
21%
45%
21%
14%
29%
15%
17%
25%