Emerson raises annual sales forecast in bets on automation demand (updated)

Cognex

08/02/2023 12:23

(Adds outlook, details from the release, estimates background)
       Feb 8 (Reuters) - Industrial conglomerate Emerson
Electric Co  EMR.N  slightly raised its full-year net sales
growth expectations on Wednesday, betting on strong demand for
its automation systems amid a tight labor market.
    The company said it now expects net sales growth of 8%-10%,
higher than its previous forecast of 7% to 9%.
    Companies across North America are rushing to automate their
assembly lines amid a shortage of workers, benefiting companies
like Emerson that caters to sectors from utility and mining to
chemicals and automotive.
    Emerson has struck a string of deals over the last few years
to turn into a provider of automation products and services, and
recently disclosed a hostile $7 billion bid for National
Instruments Corp  NATI.O  to strengthen that business.  
    The company's net income rose to $2.33 billion, or $3.97 
per share, in the first quarter ended Dec. 31, from $896
million, or $1.50 per share, a year earlier. 
    Excluding items, the company reported a profit of 78 cents
per share, compared with analysts' estimate of 87 cents,
according to Refinitiv data. 
    Revenue rose 7% to $3.37 billion, compared with estimates of
$3.43 billion.
 (Reporting by Aishwarya Nair in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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