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Emerson Electric Reduces 2009 Profit Forecast for the Second Time

Emerson Electric(EMR Quote) revised its full-year 2009 profit forecast for the second time this year, citing lower spending by its customers across multiple business segments.

The St. Louis-based company, which makes a wide variety of commercial and industrial electrical devices, said that it now sees full-year 2009 earnings of $2.40 to $2.60 per share. On average, Wall Street analysts expect $2.47 per share. Emerson had previously revised its outlook in February to a range of $2.70 to $2.95 per share.

The company said it expects full-year sales to decline 9% to 11% from 2008 levels, also disclosing that sales fell 20% to 25% from December through February. Emerson said it plans to spend $1 billion in 2009 on acquisitions, while recording $200 million to $250 million in restructuring charges.

Despite the seemingly bad news, Emerson shares rose $1.12, or 3.68%, in late-morning trading Tuesday. ...