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Emerson Electric raises adjusted annual profit forecast; to exit Russia

Published 05/04/2022, 07:23 AM
Updated 05/04/2022, 07:46 AM
© Reuters. Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid

© Reuters. Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid

(Reuters) -Emerson Electric Co raised its forecast for adjusted annual profit on Wednesday, as the diversified U.S manufacturer benefits from companies revamping their assembly lines with automation equipment to offset a labor shortage.

Manufacturers across the globe have been making efforts to automate their assembly lines by adding robots to help meet rising demand for goods, amid a shortage of workers due to the pandemic.

Emerson (NYSE:EMR), which began selling fans and electric motors a century ago, now expects its 2022 adjusted earnings per share to be between $4.95 and $5.10, up from its prior forecast of $4.90 and $5.05.

The St. Louis, Missouri-based company was involved in a string of acquisitions over the last few years to help reposition itself as a technology-focused firm.

Sales at Automation Solutions unit, Emerson's biggest business catering to sectors from utility and mining to chemicals and automotive, rose 5.15% to $2.94 billion.

Emerson also said it would exit its business in Russia, adding that it would explore strategic options to divest Metran, its subsidiary in the country.

© Reuters. Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid

The U.S. factory automation equipment maker also reported net earnings to common stockholders of $674 million, or $1.13 per share, for the second quarter ended March 31, up from $561 million, or 93 cents per share, a year earlier.

Net sales rose to $4.79 billion, compared with $4.43 billion a year earlier.

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