Emerson quarterly profit falls over 7% as supply chain woes hit sales
Reuters
Published Nov 03, 2021 07:25AM ET
(Reuters) - Emerson (NYSE:EMR) Electric Co posted a 7.3% fall in quarterly profit on Wednesday, as component and industry-wide labor shortages meant the U.S. manufacturing conglomerate could not meet demand.
Sales at the company's Automation Solutions' unit, its biggest business, were impacted by about $125 million in the quarter, due to supply and logistical woes, Emerson said, joining other U.S. companies who have flagged a hit from similar issues.
The St. Louis, Missouri-based company, which began a century ago by selling fans and electric motors, was involved in a string of acquisitions over the last few years to reposition itself as an technology-focused company.
Emerson, which now has a suite of products ranging from automation software to air conditioning tools, said last month it would merge its software units with smaller rival Aspen Technology (NASDAQ:AZPN) in a deal worth $11 billion.
The company's net income fell to $670 million, or $1.11 per share, in the fourth quarter ended Sept. 30, from $723 million, or $1.20 per share a year earlier.
Net revenue rose 8.5% to $4.95 billion.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.