NEW YORK (Reuters) - Industrial conglomerateEmerson Electric Co raised its 2010 earnings forecastThursday to reflect gains from recent asset sales and anacquisition, but said its underlying business expectations havenot changed since its August earnings conference call.
Emerson said it now expects fiscal 2010 earnings per shareof $2.70 per share to $2.85 per share, including 10 to 15 centsper share from two recent asset sales. Its earlier range hadbeen $2.60 to $2.70.
Emerson last week completed its $1.5 billion acquisition ofBritain's Chloride, a maker of power supply systems that itsays will boost Emerson's geographical reach and expand itsproduct offerings, leading to "synergies" both from costsavings and new sales opportunities.
Emerson is also selling its LANDesk Software business toprivate equity firm Thoma Bravo, having found a buyer for thetechnology services unit that was part of its 2009 acquisitionof Avocent. And Nidec Corp said last month it willbuy two of Emerson's motors businesses.
Those two divestitures will generate pretax proceeds ofabout $850 million, Emerson said.
Emerson Chief Executive David Farr said on a conferencecall the company would now focus on integrating Chloride andadded he would not be surprised if Emerson spent less than $500million in its 2011 fiscal year on acquisitions.
"I am not a serial acquirer," Farr told analysts. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)