St. Louis, MO, United States (4E) – Emerson Electric Co. reported 2.5 percent decline in earnings for the first three months of 2014 due to weaker revenue amid the manufacturer’s recent divestiture.
Profit was $547mn, down from $561mn a year ago for the quarter ended March 31, according to the company’s results released Tuesday. Per-share earnings remained flat at 77 cents, because of fewer shares outstanding in the latest quarter.
Net sales dropped 2.5 percent to $5.81bn. Analysts predicted earnings on a per-share basis of 81 cents on $5.9bn revenue. Emerson also affirmed its full-year guidance.
Sales from the network power division declined 21 percent, as a result of a recent divestiture. Process-management sales climbed 4.4 percent. Revenue from industrial automation rose 1.6 percent, and sales from climate-technologies gained 5.4 percent.
The company, which makes data center power management systems as well as factory-automation equipment and software, expects business confidence will slowly improve and macroeconomic conditions will gain momentum, particularly in Europe.
Emerson acquired EGS Electrical Group, its joint venture with SPX Corp., in January by paying $571mn for a 44.5 percent stake of the industrial-equipment maker. The EGS business manufactures electrical products for industrial, commercial and hazardous environments.