Emerson Electric (EMR) Reports Q2 EPS of 65c, Offers FY15 Guidance

Emerson Electric (NYSE: EMR) reported Q2 EPS of $0.65, may not compare to the analyst estimate of $0.76. Revenue for the quarter came in at $5.4 billion versus the consensus estimate of $5.42 billion.

Emerson Electric sees FY2015 EPS of $4.17-$4.32, may note compare to the consensus of $3.66.

2015 Outlook

The global macroeconomic environment for Emerson related businesses will continue to be challenging for the remainder of 2015, as strong headwinds from lower oil prices, strength of the U.S. dollar, and a broad slowdown in industrial spending, particularly in North America and China, will place downward pressure on underlying sales growth across most of our businesses. Visibility is limited in this environment, so our focus will be on controlling what we can: reducing costs to improve profitability, cash flow, and capital resource allocation. Near-term profitability will be negatively affected by volume deleverage as a result of weaker underlying sales growth. We now expect 2015 net sales to decline (7) to (5) percent. Underlying sales growth is expected to be 0 to 2 percent, excluding a negative impact from currency translation of approximately 5 percent and a 2 percent deduction from divestitures. Our execution focus will be on aligning costs with minimal, if any, underlying sales growth to improve margins and position the company for increased profit growth in 2016. Therefore, restructuring will continue to be increased in this environment and is now expected to exceed $140 million in the fiscal year. Reported earnings per share are expected to be $4.17 to $4.32, including a significant reduction from currency translation, the power transmission solutions divestiture gain of $0.77 per share, and accelerated restructuring costs of $0.09 per share.

"I am proud of the effort the management team and all of our employees are making in the face of these difficult global market conditions," Farr said. "We will stay focused on what we can control and drive operational improvements in this tough cycle as we move through 2015."

For earnings history and earnings-related data on Emerson Electric (EMR) click here.

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