Emerson Electric sees falling sales in fiscal '10

Emerson Electric forecasts falling sales in fiscal 2010 but expects to beat Street estimate

• On 10:04 am EST, Tuesday November 3, 2009

ST. LOUIS (AP) -- Emerson Electric Co. said Tuesday it expects sales in the 2010 fiscal year to decline 5 percent to 7 percent as the manufacturing and technology services provider struggles with a weak economy.

Based on sales in the 2009 fiscal year of $20.92 billion, the forecast implies sales of $19.46 billion to $19.87 billion for the 12 months ending next September.

Analysts expect, on average, sales of $20.21 billion, according to Thomson Reuters.

For the three months ending in December, Emerson expects sales to fall 17 percent to 20 percent. Based on sales of $5.32 billion in its fiscal 2009 fourth quarter that implies sales of $4.26 billion to $4.42 billion.

Analysts expect $4.58 billion.

"The shape and speed of the recovery remains unknown and we expect weakness to continue in the near-term," CEO David N. Farr said.

Emerson also reported that profit in its fiscal 2009 fourth-quarter fell 26 percent on declining sales.

Further, the board increased its quarterly cash dividend.

In morning trading, the stock rose 62 cents to $38.77.