DOW JONES NEWSWIRES
Emerson Electric Co.'s (EMR) fiscal second-quarter earnings fell
32% on slumping sales for the maker of industrial-automation
equipment, power systems and heating and cooling gear.
The broad-based manufacturer has repeatedly warned of eroding
business as demand weakened and customers reduced inventory
recently amid the economic downturn. However, Emerson has said it
won't deviate from its plans to acquire complementary businesses
and expects to spend about $1 billion on takeovers this year.
In the quarter ended March 31, Emerson posted a profit of $373
million, or 49 cents a share, down from $547 million, or 69 cents a
share from a year earlier. The company said higher restructuring
expenses hurt the most recent results by 4 cents a share. The
previous year's results included a 6-cent loss from discontinued
operations.
Revenue decreased 16% to $5.09 billion, nearly one-third of
which was due to the stronger dollar.
A survey of analysts by Thomson Reuters expected earnings per
share of 53 cents on $5.09 billion in revenue.
Gross margin fell to 36.1% from 37.2%.
The company's network-power segment, one of Emerson's biggest
businesses, saw sales fall 16% and earnings slump 44% amid weakness
in the U.S. and Europe.
Shares of Emerson, which affirmed its 2009 forecast, closed at
$37.35 Monday and weren't active premarket. The stock has rebounded
from a 5-year low in March.
-By Joan E. Solsman and Kerry E. Grace, Dow Jones Newswires;
201-938-5089; kerry.grace@dowjones.com
