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Emerson Electric cuts full-year outlook as orders slip

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(Globalpost/GlobalPost)

(Reuters) - Emerson Electric Co <EMR.N> reported second-quarter results that fell short of analysts' expectations and cut its outlook for the year, saying orders for its industrial products were trending lower.

The provider of automation systems and uninterruptible power supplies cut its per-share earnings forecast for the year by 5 cents to $3.48 to $3.58.

The company also said it now expects revenue to rise by 1.5 to 2.5 percent this year, instead of the 2 to 5 percent it had forecast earlier.

Emerson said in February it was seeing signs of a pickup in demand for industrial products in 2013. However, in March the company said orders for its industrial, power and embedded computing products continued to be under pressure.

Demand remained weak in April, the company said on Tuesday.

"After a weaker than expected February and March, orders in April continued to trend downward, reflecting further deterioration in business confidence," the company said.

"There is no clear catalyst to improve global economic growth over the next six to nine months."

Net income attributable to shareholders rose 3 percent in the second quarter to $561 million, or 77 cents per share, but missed the average analyst estimate by 1 cent per share.

Emerson earned $545 million, or 74 cents per share, in the second quarter last year.

Revenue rose 1 percent to $5.96 million, below the average Wall Street estimate of $6.03 billion, according to Thomson Reuters I/B/E/S.

Three of the company's five divisions showed lower revenue, but sales in Emerson's process management business, which serves the energy industry, rose 8 percent.

The improving U.S. residential construction market helped to boost revenue in Emerson's air conditioning business.

Emerson's shares, which have gained about 7 percent in 2013, closed at $57.30 on the New York Stock Exchange on Monday.

(Reporting by Mridhula Raghavan in Bangalore; Editing by Sreejiraj Eluvangal)

http://www.globalpost.com/dispatch/news/thomson-reuters/130507/emerson-electric-cuts-full-year-outlook-orders-slip