Emerson Electric Q1 Profit Falls, Backs FY16 Adj. Earnings View

(RTTNews) - Emerson Electric Co. (EMR) Tuesday announced first quarter net income of $353 million down 33 percent from $529 million in the prior year. On a per share basis, earnings declined 29 percent to $0.53 from $0.75 last year. Adjusted earnings were $0.56 per share.

On average, 25 analysts polled by Thomson Reuters expected the company to earn $0.51 per share. Analysts estimates usually exclude special items.

The company recored 16 percent decline in net sales for the first quarter to $4.713 million from $5.587 million in the previous year. Underlying sales declined 9 percent. Wall Street expects $4.64 billion.

Looking ahead to fiscal 2016, the company affirmed its guidance for adjusted earnings per share of approximately $3.05 to $3.25, which excludes estimated separation expenses of approximately $250 to $350 million related to the planned spinoff of Network Power and the potential divestitures of the Motors and Drives and Power Generation businesses. Street expects $3.03 per share.

Reported earnings per share are expected to be approximately $2.55 to $2.90. Adjusted earnings per share for the second quarter are expected to be approximately $0.60 to $0.65 excluding approximately $75 million of separation costs. Reported earnings per share are expected to be $0.49 to $0.54.

The company expects difficult conditions to persist in its served markets. Underlying sales for 2016 are still expected to be down approximately 2 to 5 percent excluding negative currency translation of approximately 2 percent and a 2 percent deduction from completed divestitures.

Reported sales are expected to be down approximately 6 to 9 percent. Underlying sales for the second quarter are expected to decline approximately 4 to 6 percent excluding negative currency translation and an impact from divestitures of approximately 2 percent each. Reported sales for the second quarter are expected to be down approximately 8 to 10 percent.