<div id="subtitle">Emerson Electric 1st-qtr profit falls, yet outlook appears brighter; shares jump</div><div><p>Emerson Electric Co. said Tuesday its first-quarter earnings fell 7 percent led by a steep falloff in sales of products that automate industrial machinery.</p><p>But the results handily beat Wall Street expectations, and the company released less-gloomy sales forecast. The stock hit a 52-week high and rose 9 percent in morning trading to $46.42.</p><p>Because Emerson makes automation systems for everything from biopharmaceutical companies to chemical refineries in China, its perception of the business climate can be telling.</p><p>CEO David N. Farr said late last year that the size and shape of the downturn could not be known. On Tuesday, however, Farr said business improved during the first three months of its fiscal year.</p><p>The company now predicts sales declines for the year of between 3 and 6 percent. Last year the company said it expected revenue declines of 7 percent.</p><p>Emerson does more business in emerging markets that its competitors and benefitted from rebounded economies in China and elswhere.</p><p>For example the company, which makes cooling systems for telecomminications and power back-up systems, saw sales in Asia rise 7 in its network power sector, even as overall sales declined 5 percent.</p><p>For the quarter, Emerson earned $425 million, or 56 cents per share, compared with $458 million, or 60 cents per share, a year earlier.</p><p>Revenue fell to $5.01 billion. Sales of products that automate industrial systems slumped 21 percent in the quarter with industrial production lagging. Sales in three other segments posted single-digit percentage declines.</p><p>A bright spot for Emerson was its climate technology division, which experienced a 13 percent sales increase driven by Asia. The division makes things like thermostats.</p><p>Emerson also said it was able to improve margins in the quarter because of restructuring and cost reduction initiatives. That surprised analysts because the company recorded record margins in the previous quarter.</p><p>Analysts polled by Thomson Reuters forecast a profit of 42 cents per share on $4.69 billion in sales.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68315723&bid=informcom" /></div><div id="copyright"><div>

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