* Earnings $1.04/share vs Street view $1
* Revenue up 3 pct to $6.48 bln
* Trims 2012 profit forecast
* Shares up 3.2 pct
By Nick Zieminski
Aug 7 Emerson Electric Co reported a
higher quarterly profit on Tuesday, lifted by improved results
in the process management business, but the industrial
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 3.2 percent to $50.49 in
"Clearly the global economy has downshifted, but the
companies that prepared for it are weathering the storm pretty
well," said analyst Matt Collins of Edward Jones, which has a
"buy" rating on Emerson shares.
Collins said Emerson was likely to raise its dividend later
on Tuesday, marking a 56th straight year of higher payouts.
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 that 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 for energy infrastructure.
Earnings jumped by one-third in that business, which makes
control systems and software to run plants in process industries
such as energy, food and beverage and water treatment.
The profit gains reflected 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
global economies 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.