(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, 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.
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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.
(Reporting by Nathan Gomes in Bengaluru; Editing by Rashmi Aich)