(Corrects paragraph 4 to show net profit rose 13 percent, not
11 percent; the error also appeared in earlier versions)
* Earnings $1.04/share vs Street view $1
* Revenue up 3 pct to $6.48 bln
* Trims 2012 profit forecast
* Shares up 1.6 pct in premarket trade
By Nick Zieminski
Aug 7 Emerson Electric Co reported
higher quarterly profit on Tuesday, lifted by improved results
in the process management business, but the conglomerate trimmed
its full-year earnings forecast because of slowing economies
around the world.
Emerson said many consumers and businesses were losing
confidence amid the European financial crisis, weaker economic
growth in China, a rising dollar and looming fiscal challenges
in the United States. It called business investment "tepid."
But its reduced earnings forecast was slightly ahead of Wall
Street estimates, and its shares gained 1.6 percent in premarket
Emerson, a provider of wireless networks used in oil and gas
production and uninterruptible power supplies, said net earnings
rose 13 percent to $770 million, or $1.04 per share, in the
fiscal third quarter ended June 30, from $683 million, or 90
cents per share, a year earlier.
Analysts, on average, expected $1 a share, according to
Thomson Reuters I/B/E/S.
Sales rose 3 percent to $6.48 billion but came in below Wall
Street estimates of $6.61 billion.
Emerson's process management segment posted a 19 percent
increase in revenue, lifted by demand from the oil and gas,
chemicals and power-generation markets.
Earnings jumped by a third in process management, reflecting
both higher sales and recent cost cuts, and Emerson said the
unit's outlook was favorable for the next several quarters.
The St. Louis-based company, which also makes industrial
automation systems and heating and cooling technology, said
economies around the world were slowing and business investment
was expected to remain "tepid."
It cut its full-year earnings forecast to a range of $3.35
to $3.40 a share, compared with a May forecast of $3.35 to
Analyst estimates, which have come down in recent weeks,
average $3.34 a share.
(Reporting By Nick Zieminski in New York; editing by Lisa Von
Ahn, Jeffrey Benkoe and John Wallace)