(By Balaseshan) Emerson Electric Co. (NYSE: EMR) reported a 22% jump in quarterly earnings as the manufacturing and technology company benefited from sales growth. Revenue beat consensus, while earnings came in line with Street's expectations.
The company said its businesses performed very well during the first quarter even while global economy remained challenging and uncertain.
"The pockets of growth our businesses captured were encouraging even though the level of total investment in our end markets continues to be slow. Recent order trends suggest market conditions have stabilized and may be poised for improvement, particularly in the emerging markets," said Chairman and Chief Executive Officer David Farr.
[Related -6 Stocks With A Sustainable Dividend]
Earnings for the first quarter were $454 million or $0.62 per share, up from $371 million or $0.50 per share in the same period last year.
Net sales rose 5% to $5.55 billion. Sales reflected mixed results across end markets, and favorable comparisons from the supply chain disruption in the prior year, the company noted.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.62 per share on revenue of $5.43 billion for the first quarter.
Underlying sales increased 6%, as currency translation and divestitures together deducted 1%, with the U.S. up 6%, Asia up 6%, and Europe down 2%.
The company has five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions businesses. Process Management led the sales growth (up 24%), boosted by global energy investment and favorable comparisons from the supply chain disruption in the prior year, EMR noted.
[Related -8 Industrial Strength Stocks With Dividend Growth]
For 2013, EMR expects earnings per share of $3.53 to $3.64, with the continued expectation that 70% to 80% of the growth to occur in the first half of the year, while analysts' expect $3.59. The company narrowed its underlying sales growth outlook to range of 2% to 5% from previous estimate of 0% to 5%, while Street predicts gain of 2.60%.
EMR shares ended Monday's regular trading session down 1.02% at $57.49. The stock has been trading in the 52-week range between $43.58 and $58.30.