Emerson Electric Flags Bigger Sales Hit From Coronavirus
February 28 2020 - 11:28AM
Dow Jones News
By Bob Tita
Emerson Electric Co. widened its expected sales decline stemming
from the coronavirus epidemic, saying the longer the virus
persists, the less likely that sales will recover later in the
year.
The diversified industrial company on Friday forecast the virus
will reduce its fiscal second-quarter sales by between $100 million
and $150 million, after forecasting Feb. 13 that sales would drop
by $75 million to $100 million.
The latest estimate will reduce Emerson's sales in the quarter
by about 2.5% to 3.5%, RBC Capital Markets estimated.
Shares fell 3.1% to $62.35.
About 11% of Emerson's annual revenue comes from China. The
company, which makes factory automation equipment, said it expects
to recover at least half of the sales loss later in the year, but
acknowledged in a regulatory filing the impact from the outbreak is
uncertain.
"The longer the coronavirus endures, the lower the likelihood of
sales recovery," the company said.
Write to Bob Tita at robert.tita@wsj.com
(END) Dow Jones Newswires
February 28, 2020 11:13 ET (16:13 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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