DOW JONES NEWSWIRES
Emerson Electric Co. (EMR) posted a 19% decrease in fiscal
first-quarter net income amid a prior-year gain as sales slipped
and results were hurt by widespread weakness in the U.S. consumer
and residential markets, leading the company to lower its outlook
for the year.
Emerson, like many other industrial companies, has been focusing
on cost cutting and said in November it was bracing for difficult
global conditions overall this year, though it doesn't expect to
get a clear reading on the global economy until March or April.
Emerson now sees 2009 per-share earnings of $2.70 to $2.95 with
sales declining 5% to 8% to $23 billion to $23.7 billion. In
November, the company forecast per-share earnings of $2.80 to
$3.20, on sales of $23.5 billion to $25.5 billion.
Meanwhile, the broad-based manufacturer reported net income of
$458 million, or 60 cents a share for the period ended Dec. 31,
down from $565 million, or 71 cents a share, a year ago. The latest
earnings included higher restructuring and lower gains, which
reduced per-share earnings by 8 cents. The prior year had a
5-cent-per-share gain from the sale of the Brooks Instrument
unit.
Revenue slumped 1.9% to $5.52 billion for the maker of
industrial-automation equipment, power systems and heating and
cooling gear. Excluding impacts from foreign-exchange rates and
acquisitions, sales were down 7% in the U.S. and up 7%
internationally.
Analysts polled by Thomson Reuters were most recently expecting
per-share earnings of 57 cents on revenue of $5.27 billion.
Operating margin decreased 0.2 percentage point to 14.8% as high
commodity prices and low volumes offset cost-reduction and
restructuring initiatives.
Emerson experienced sales declines across its climate
technologies, industrial automation and appliance and tools
segments amid continued and widespread weakness in the U.S.
consumer and residential markets and customer destocking. Process
management posted strong U.S. and global sales.
Emerson shares were up 1.4% at $32.15 in pre-market trading. The
stock has fallen almost 40% in the past year.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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