Emerson Electric (NYSE:EMR) said on Tuesday its first-quarter profit climbed 13% on improved global sales, helped by a gradual economic recovery, however its results still missed Wall Street estimates.
The St. Louis-based company posted net earnings of $480 million, or 63 cents a share, compared with $425 million, or 56 cents a share, in the same quarter last year, just under average analyst estimates polled by Thomson Reuters of 65 cents.
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Revenue for the diversified technology company, focusing on power plants and industrial automation, was $5.54 billion, up 15% from $4.83 billion a year ago, marginally missing the Street’s view of $5.57 billion.
“Emerson performed well in the first quarter as economies around the world continued to recover,” said David N. Farr, the company’s chief executive. “During the past two years, we focused on improving and repositioning our operations to benefit during what we believe will be a slower global economic recovery. We are seeing the value of that hard work.”
Sales were attributed by the company to across-the-board improvements in all of its business segments, with process management, industrial automation and network power up 12%, 23% and 21%, respectively. Its climate technologies and tools and storage segments each climbed 3%, all helped by growing success in international markets.
Looking ahead, the company continues to anticipate global economic recovery, and believes solid order trends and execution of its global restructuring plans will position Emerson for a strong 2011.
The company sees full-year earnings in the range of $3.15 to $3.30 a share, on sales of $24 billion to $24.5 billion. Analysts are expecting earnings of $3.23 a share.