Emerson Elec 4Q Profit Down 26% On Sales Woes; View Cautious
DOW JONES NEWSWIRES
Emerson Electric Co.'s (EMR) fiscal fourth-quarter profit dropped 26% as the
diversified manufacturer posted lower sales across all its businesses.
That trend is expected to continue, as the company sees sales this quarter,
excluding the impacts of foreign currency rates and acquisitions to be down 17%
to 20%. Analysts estimated total revenue to drop 15% to $4.58 billion, according
to a survey by Thomson Reuters. The year's revenue drop is seen at 5% to 7%,
compared with the 4% decline to $20.21 billion projected by analysts.
Emerson also boosted its dividend by a half cent to 33.5 cents a share, or an
increase of 1.5%.
Chief Executive David Farr said the latest quarter's results showed improving
revenue trends but warned the shape and speed of the recovery remains unknown
and said the company expected weakness to continue in the near term.
Emerson, which makes factory-automation equipment and software and components
for appliances, has continued to suffer as demand in Europe and North America
has increased at a slower rate than expected. It has aggressively cut jobs and
inventories this year.
For the quarter ended Sept. Sept. 30, Emerson reported a profit of $506
million, or 67 cents a share, down from $688 million, or 88 cents a share, a
year earlier. Revenue dropped 21% to $5.32 billion.
Analysts estimated earnings of 60 cents on revenue of $5.3 billion, according
to a poll by Thomson Reuters.
Gross margin rose to 38.1% from 36.9% on its cost-cutting.
Sales declined across the company, while profits were down in every segment
but climate technologies, which posted 6.5% growth. Revenue and earnings
declined 13% and 31%, respectively, in the largest unit, process management.
Emerson's shares closed Monday at $38.15 and were inactive in premarket
trading. The stock is up just 4.2% this year.
-By Kathy Shwiff and John Kell, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com
(END) Dow Jones Newswires
11-03-090721ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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