Emerson sees strong dollar cutting fourth-quarter sales by $120 million
(Reuters) - Industrial conglomerate Emerson Electric Co (EMR.N) warned that a strengthening U.S. dollar would reduce its fourth-quarter sales by an estimated $120 million, but kept its full-year earnings outlook of $3.35 to $3.50 per share.
Dollar strength has reduced sales by $50 million since the beginning of the third quarter, the company said in a filing with the U.S. Securities and Exchange Commission.
The St. Louis-based company said its trailing three-month orders declined 2 percent due to the strong dollar while orders, excluding currency, were up 3 percent.
The reduced underlying growth rate reflects the European financial crisis, concerns in the United States over expiration of tax cuts on December 31, and the slowing U.S. and Chinese economies, Emerson said.
Order growth at its largest process management segment remains strong as investments in global oil and gas, chemical, and power industries drive demand, the company said.
Emerson shares closed at $44.51 on Monday on the New York Stock Exchange.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Sriraj Kalluvila)