Emerson quarterly profit falls over 7% as supply chain woes hit sales
Written by on November 3, 2021
November 3, 2021
(Reuters) – Emerson 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 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.
(Reporting by Nathan Gomes and Shivansh Tiwary in Bengaluru; Editing by Krishna Chandra Eluri)