(Reuters) -Emerson Electric reported a lower-than-expected fourth-quarter revenue on Wednesday, as the company contends with choppy demand for its automation equipment.
Shares of the company fell over 6% in premarket trade.
Emerson, which pivoted to focus on automation over the past few years, is still attempting to gain traction and has struggled to yield stronger margins from the unit.
The company streamlined itself over the past few years with moves that included a string of deals to cash in on demand for industrial automation in the future. Last year, Emerson agreed to buy the rest of AspenTech it did not already own for a valuation of around $15.1 billion.
However, its measurement and analytical devices have continued to benefit from manufacturers and end customers across the chemical, oil and gas industries.
Overall quarterly net sales rose 5% to $4.85 billion from a year earlier. Analysts on average expected the company to report net sales of $4.9 billion.
On an adjusted basis, it earned $1.62 per share for the quarter through September, in line with estimates.
(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
Comments