Not long after David Farr replaced longtime Chief Executive Charles Knight, Emerson broke its streak of 43 consecutive years of earnings increases. But the past few years have been much better for Farr. As the economy turned down in 2001 and 2002, orders waned for the St. Louis conglomerate’s products, which include a diverse mix of industrial equipment, power systems for the telecom industry, cooling components in air conditioners, and household appliances, among other things. Farr presided over a painful retrenchment, which involved scores of plant closings. But as the global economy bounced back, Emerson has enjoyed strong growth once again. Last year earnings jumped 30% as revenues increased 16%. Over the past three years, the company has doubled the pace of product launches. It has built a significant presence in China, where It does more than $1 billion in sales. And Emerson will be on the prowl for acquisitions. Management expects to spend $6 billion on deals in the next five years.
|Sales Growth Rate**|
|12-Month Net Income||
|Total Return||Past 12 Months|
|Past 36 Months
|Industry||Electrical Components & Equipment|