In an unusual investor update that took place weeks before its fiscal Q2 results are officially announced, Emerson revised its earnings outlook for the year to better reflect continuously declining market demand.
Based on year-to-date performance and recent order patterns, Emerson expects full year sales of $21 billion to $21.7 billion and earnings per share in the range of $2.40 to $2.60. Compared with 2008, when the company posted full year sales of $24.8 billion and EPS of $3.06, these new numbers represent a 13% to 15% decline in sales and a 15% to 22% decline in EPS, the company concedes.
In February, Emerson reported its fiscal Q1 results, at which time it predicted full year EPS of $2.70 to $2.95 and full year sales of $23 billion to $23.7 billion, based on an anticipated underlying sales decline in the range of 3% to 6%, the company said.
But in the past 65 to 75 days, the company has experienced a dramatic reduction in orders and sales.