Emerson Electric profit jumps 47% on strength in automation unit

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FILE PHOTO: Workers produce some of the specialized valves at Emerson Electric Co.’s factory in Marshalltown Iowa

(Reuters) – U.S. equipment maker Emerson Electric Co on Tuesday posted a near 47% jump in third-quarter profit, benefiting from stronger performance at its automation unit as companies revamp their assembly lines to offset a shortage of factory workers.

The St. Louis, Missouri-based company, which began selling fans and electric motors more than a century ago, has been positioning itself as a technology-focused firm with a string of acquisitions over the last few years.

Companies globally have been making efforts to automate their assembly lines by adding robots to help meet rising demand for goods, amid a shortage of workers following the pandemic.

Still, the industrial conglomerate trimmed its full-year net sales growth outlook to a range of 7% to 8% from its prior outlook of 8% to 10%, to reflect impacts from its exit from Russia, deals, and other headwinds related to COVID-19.

The company’s net earnings rose to $921 million, or $1.54 cents per share, in the quarter ended June 30, from $627 million, or $1.04 per share, a year earlier.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shailesh Kuber)

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