Emerson boosts 2024 profit view on measurement tools demand

(Reuters) -Engineering solutions firm Emerson (NYSE:) raised its full-year profit forecast on Wednesday, expecting steady demand in its unit that makes valves, regulators and actuators.

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 an adjusted basis, it earned 1.26 per share excluding AspenTech’s contribution, for the quarter ended March 31, compared with analysts’ estimates of $1.25, according to LSEG data.

Emerson acquired smaller rival AspenTech in an about $11 billion deal nearly three years ago as it sought to amp up its bid towards automation technology.

Including AspenTech’s contribution, it earned an adjusted profit of $1.36 per share.

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