Emerson Q4 Profit More Than Doubles; Adj. Earnings Beat Estimates - Quick Facts

(RTTNews) - Diversified global technology firm Emerson Electric Co. (EMR) reported that its fourth-quarter net earnings common shareholders increased to $795 million or $1.10 per share, from $282 million or $0.39 per share in the same quarter last year.

Earnings per share of $1.18 exclude an income tax charge of $37 million or $0.05 per share related to the embedded computing and power transaction, as well as a noncash pretax goodwill impairment of $25 million or $0.03 per share related to protracted weakness in the connectivity solutions business. On a comparable basis, this reflects 6 percent growth from the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.11 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose to $6.81 billion from $6.70 billion in the prior year quarter. Twenty three analysts had consensus revenue estimate of $6.76 billion for the quarter.

Net sales in the fourth quarter increased 2 percent, consistent with recent order trends. Underlying sales grew 1 percent, with the U.S. down 1 percent, Asia up 4 percent, and Europe up 1 percent. Growth was unfavorably impacted by difficult comparisons in the prior year, when Process Management recovered from Thailand flooding and Network Power executed a large project in Australia. Emerging markets continued to outperform mature markets, with 5 percent growth driven by China and Mexico.

Based on a forecast of global gross fixed investment growth of 2.5 to 4 percent, Emerson underlying sales are expected to grow 3 to 5 percent in 2014, with reported sales expected to change (1) to 1 percent, reflecting the previously announced embedded computing and power transaction, which is expected to close before the end of calendar 2013.

Excluding impairments and repatriation charges, earnings per share for fiscal 2014 are expected to increase 4 to 7 percent, or 33 to 38 percent on a reported basis. The embedded computing and power transaction impact to 2014 earnings per share is expected to be approximately neutral, as supplemental share repurchase offsets the earnings decline.

Analysts expect the company to report earnings of $3.89 per share and revenues of $25.21 billion for fiscal 2014.