Emerson profit soars 51% in Q3
Written on August 5, 2010
Emerson's profit soared 51 percent in its third fiscal quarter to $585 million from $387 million, thanks to a growth in sales for HVAC products and appliances.
The second-largest public company based in St. Louis (NYSE:EMR) reported sales of $5.6 billion for the quarter ended June 30, up 10 percent from $5.1 billion in the prior-year quarter.
Emerson's climate technologies segment, which includes heating, ventilation and cooling products, reported a 29 percent jump in sales in the third quarter to $1.1 billion, driven by 35 percent international sales growth and 23 percent U.S. sales growth.
The company's industrial automation sales increased 16 percent to $956 million after sales growth resumed across all businesses and geographies. This division's manufacturing equipment is sold to the automotive, oil and energy sectors.
Emerson's appliance and tool sales grew 10 percent to $850 million.
“Global markets continue to recover, at a slower pace than previous economic cycles, but in-line with our expectations," Chairman, Chief Executive and President David Farr said in Tuesday's earnings release. "We expect this slow, but steady, recovery to continue for the next several years. We do not expect a double-dip recession in our end markets."
Crompton Greaves, an India-based power equipment company, is said to have made a $400 million bid for St. Louis-based Emerson’s transformer unit.
Last month, British power supply company Chloride Group accepted Emerson's $1.5 billion takeover bid after Emerson beat Swiss rival ABB Ltd. in a biding war.
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