Emerson Electric Co.(NYSE:EMR) announced its quarterly results on Tuesday January 7, 2016 as its profit plunged 11% for its first quarter, however the company said it saw signs of improvement in circumstances and surged its annual outlook for earnings from ongoing operations.
“The first-quarter results reflected mixed but generally improving global economic conditions” in key markets, the industrial company said.
Emerson Electric Co.(NYSE:EMR)’s largest division, automation solutions, reported a 9% slip in sales to $1.97 billion because of its contact to low oil prices, commercial and residential solutions registered a rise of 6.3%. The growth was somewhat due to “U.S. and Asian construction markets,” the company said.
Similar to most of the U.S. industrial giants, Emerson was hurt because of the downfall of energy prices. The sturdy U.S. dollar also has an impact on the results. The company has reacted by selling assets and cutting costs.
Emerson Electric’s Chief Executive David Farr said in a statement that the company expects “significant challenges to persist” through 2017, but that surging demand will help the company in the second half of the year.
The St. Louis conglomerate upped its annual forecast for earnings on a per-share basis from continuing operations to a range of $2.47 to $2.62 from $2.35 to $2.50. Emerson still believes, however, that total sales for the year will be down between 1% and 3%.
Including everything for the latest quarter, Emerson posted a profit of $309 million, or 48 cents a share, down from $349 million, or 53 cents a share, year over year. Earnings from ongoing operations surged to 56 cents a share from 46 cents year over year. Company’s revenue dropped 3.6% to $3.21 billion.
However Emerson Electric (EMR) results were not up to the mark, they still managed to top analysts’ predictions. Analysts were forecasting 42 cents in adjusted earnings per share and $3.16 billion in sales.