Emerson Electric boosts 2024 profit view on measurement tools demand

FILE PHOTO: Emerson Electric Co is displayed on a screen on the floor at the NYSE in New York

(Reuters) - Emerson Electric raised its full-year profit forecast on Wednesday on steady demand in its unit that makes valves, regulators and actuators, sending the engineering solutions firm's shares up about 2% in premarket trade.

The company's measurement and analytical devices have enjoyed sustained demand from manufacturers and end customers across the chemical, oil and gas industries, while strength in its factory control software helped offset a hit from slowing automation demand.

The St. Louis, Missouri-based company now expects full-year adjusted earnings per share of between $5.40 and $5.50, compared with its prior expectation of $5.30 to $5.45.

Second-quarter sales at its discrete automation unit fell about 7% to $632 million. Overall quarterly revenue rose about 17% to $4.38 billion, compared with expectations of $4.29 billion.

On adjusted basis, it earned $1.36 per share for the quarter ended March 31, compared with analysts' estimates of $1.25, according to LSEG data.

Peer Rockwell Automation cut its full-year profit and sales growth forecast on Tuesday, after having to dial back an initial push towards automation.

(This story has been corrected to fix the adjusted EPS after LSEG updated the comparable number to estimate to $1.36, not $1.26, in paragraph 5. It also drops paragraph 7 to remove repetition.

(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)