Emerson Electric Q3 Profit Soars, Misses View; Warns On FY14 Outlook

(RTTNews) - Emerson Electric Co. (EMR), a diversified technology company, reported Tuesday a surge in third- quarter profit, despite lower net sales.

Net earnings attributable to common shareholders grew 277 percent to $728 million from last year's $194 million. Earnings per share was $1.03, higher than last year's $0.27.

Earnings per share of $1.03 grew 6 percent excluding Artesyn related charges in the prior year despite a $0.03 headwind from difficult tax rate comparisons.

The prior year results included goodwill impairment charge of $503 million.

On average, 22 analysts polled by Thomson Reuters expected earnings of $1.06 per share for the quarter. Analysts' estimates typically exclude special items.

Gross profit margin went up 130 basis points.

Net sales for the quarter edged down 1 percent to $6.312 billion from $6.344 billion last year, while underlying sales grew 3 percent. Analysts expected sales of $6.45 billion.

The company further said the proceeds from the completion of the Connectivity Solutions business unit divestiture in the fourth quarter will augment share repurchase by approximately $100 million, increasing the full year to approximately $1 billion.

Looking ahead for fiscal 2014, the company said order trends are expected to improve modestly in the fourth quarter to between 5 and 7 percent underlying growth, led by better conditions in emerging markets and firming demand in the U.S.

For the year, the slower than expected economic environment year-to-date is expected to result in financial performance trending to the low end of previously communicated expectations of 3 to 5 percent underlying sales growth, to 1 percent net sales change, and earnings per share of $3.68 to $3.80.