UPDATE: Emerson Electric Posts Better-Than-Expected FQ4 Earnings

Emerson Electric Company

reported stronger-than-expected earnings for its fiscal fourth quarter. For FY15, the company projects flat to 1% revenue growth, versus analysts' expectations for a 3% sales growth. The St. Louis, Missouri-based company posted a quarterly profit of $410 million, or $0.58 per share, versus a year-ago profit of $795 million, or $1.10 per share. The latest quarter earnings included $508 million in goodwill impairment, versus a $25 million goodwill impairment in the year-ago period. Excluding items, the company earned $1.30 per share. Its net sales came in flat at $6.81 billion. However, analysts were expecting earnings of $1.23 per share on sales of $6.81 billion. Network power sales dropped 20%, while process-management sales climbed 8%. Industrial automation sales rose 5%, while climate technologies sales gained 7% in the quarter. Commercial & residential solutions sales jumped 5% in the third quarter. Sales in North America gained 8%, while Europe sales came in flat. Gross profit margin widened 120 basis points to 42.4% in the quarter. Chairman and Chief Executive Officer David N. Farr said, "Once again, global business investment struggled to sustain momentum, with growth fading through the year as economic uncertainty increased. I am very pleased with how we executed in this environment, delivering solid results while maintaining our strategic investment programs to continue to position Emerson for stronger long-term growth and enhance shareholder value." Emerson Electric shares rose 0.70% to $64.51 at 9:34 a.m. ET.