Emerson Sees Strong 2010 Growth
St Louis, Mo. (
) -- Global technology company
Emerson Electric
(EMR) - Get Report
is forecasting strong full-year growth amid improving business conditions and improving order patterns.
Emerson expects full-year earnings per share in the range of $2.20 to $2.40, which includes the impact of the acquisition of IT operations management solutions company
Avocent
.
Emerson bases this forecast on the improving business conditions in the first quarter, improving recent order patterns, and strong profit improvement from the last 18 months of global restructuring efforts.
Emerson is estimating a 2% favorable impact from currency translation and a 4% favorable impact from acquisitions resulting in reported sales, which are flat to up 3%, or $20.9 to $21.5 billion.
Analysts polled by Thomson Reuters have been expecting full-year earnings of $2.11 on revenue of $20.58 billion.
The company announced that net sales for the first quarter ended December 31 were $5 billion, a decline of about 7% from the prior-year quarter.
Emerson reported net earnings attributable to common stockholders of $425 million -- falling about 7% -- or common share earnings of 56 cents.
Analysts surveyed by Thomson Reuters had expected first quarter earnings of 42 cents on revenue of $4.69 billion.
"Considering the continuing economic pressures, this was a solid quarter and an encouraging start for 2010," Emerson's CEO David Farr said. "Our margin improvement demonstrates that we are doing the right things to drive global best cost and increase shareholder value. To successfully manage through the uncertain economic conditions that remain in most of our markets, we are focused on accelerating new product programs, investing in emerging markets, and making strategic acquisitions in our core and adjacent markets."
-- Reported by Andrea Tse in New York
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