Emerson Electric Flags Bigger Sales Hit From Coronavirus

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 [e-mail]

(END) Dow Jones Newswires

February 28, 2020 11:13 ET (16:13 GMT)

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