Fortive Corp (NYSE: FTV) the company has reported the adjusted net earnings were $288.6 million in the fourth quarter of FY 17, compared to the adjusted diluted net earnings per share of $0.82 in the corresponding period last year. The growth was driven by 4.5% core revenue growth and 110 basis points of core operating margin expansion or 55 points excluding the benefit from lower amortization. Further, the company has accelerated core growth and posted the free cash flow conversion of 107% for the year.
In 2017, FTV had launched game-changing technologies across the company, that includes the Tektronix 5 Series mixed-signal oscilloscope and the Fluke T6 non-contact voltage electrical tester. The company has made important strides advancing Fluke and Salix, Gilbarco Veeder-Root Insite360 and telematics digital strategies. FTV grew the market share as many of the businesses performed including Fluke, IFC, Tektronix, Qualitrol, Setra, Kollmorgen and Gilbarco Veeder-Root. The company has increased high-growth market sales as a percentage of total revenue by 150 basis points. Further, the company has deployed $1.6 billion towards strategic acquisitions and has made successful strides towards enhancing the portfolio to having more recurring revenue, less cyclicality and higher exposure to quality end market and secular growth drivers.
Moreover, in the third quarter of FY 18, effective tax rate was 21% and the sales grew 11% to $1.8 billion including a core revenue increase of 3%. The company has posted a record gross margin of 50.4%, which is an increase of 140 basis points over last year, as the company applied FBS fundamentals, that drove strong PBV and price performance.
Additionally, geographically high growth markets core revenue has grown mid single digits with continued strength across Asia and growth in Latin America. The double digit growth in China was led by business wins at Gilbarco Veeder-Root, Kollmorgen, Fluke and sensing technologies. In addition, the developed markets core revenue grew low single digits due to Western Europe and improved performance in North America led by high single digit growth at Tektronix and Fluke reflecting new product innovations, strong commercial execution through the Fortive business system and an improved industrial economy.