Posted August 2, 2016

Emerson to sell two business units

Emerson announced plans to sell its Leroy-Somer and Control Techniques division to Nidec Corporation and its Network Power business to Platinum Equity and a group of co-investors.

The transaction of the network power unit is valued at $4 billion, while Nidec will pay $1.2 billion for the motors and electric power division.

The company also announced that net sales in the third quarter of $5.1 billion were down 7 percent, with underlying sales down 5 percent excluding unfavorable currency translation and an impact from a divestiture, net of acquisitions of 1 percent each.

Sales were down in all segments except Network Power, which was up 8 percent on the strength of both data center and telecommunications infrastructure spending. Emerson underlying sales were negative in all regions, except Europe which was flat. 

Net earnings of $490 million were down 15 percent from $574 million in the same period last year.