Emerson To Explore Options For Power Transmission Solutions Unit

(RTTNews) - Diversified technology company Emerson Electric Co. (EMR) said Friday it is evaluating strategic options for its Power Transmission Solutions business unit. The company expects to determine and announce the plans for the business by the end of the calendar year.

The Florence, Kentucky-based Power Transmission Solutions business unit is currently part of Emerson's Industrial Automation business. The unit generated revenues of more than $600 million in 2013 and has more than 3,000 employees around the world.

The business makes couplings, bearings, conveying components, gearing, drive components, and supporting services and solutions, with brands including Browning, Jaure, Kop-Flex, McGill, Morse, Rollway, SealMaster, and System Plast.

For the recent second quarter, Industrial Automation sales increased 2 percent to $1.23 billion, as demand improved for capital goods, especially in emerging markets.

Emerson said it continually evaluates the mix and competitive positioning of its businesses to maximize shareholder value, which may include adding or selling operations.

In mid-May, Emerson said it has agreed to sell its Connectivity Solutions business unit to Bel Fuse, Inc. (BELF.A, BELF.B) in a deal valued at $98 million. The deal is expected to close before the end of the fiscal year, with proceeds deployed for incremental share repurchase in 2014.

Emerson had reported lower profit and sales for the recent second quarter, which was impacted by unusual weather and weaker business investment in the U.S.

The company's net earnings for common shareholders for the quarter declined 2 percent to $547 million from $561 million in the previous year, while earnings per share were flat with last year at $0.77. Net sales slid 2 percent to $5.81 billion from $5.96 billion in the previous year.

EMR closed Thursday's trading at $66.73, down $0.29 or 0.43 percent on a volume of 1.93 million shares.