Emerson Electric, an industrial multinational, announced quarterly results that surpassed expectations on Wednesday, boosted by robust demand for its automation systems and air-conditioning and refrigeration products amid a tight labor market.
Companies across North America have been hurrying to add robots to their manufacturing lines in order to meet high demand at a time when many are struggling to rehire people who have been displaced by the outbreak.
As a result, Emerson's biggest company, Automation Solutions, saw its first-quarter revenues grow 4.2% to $2.81 billion. It serves industries ranging from utilities and mining to chemicals and automobiles.
With economies reopening and homebuilding activity in the United States reaching a nine-month high in December, Emerson's commercial and residential market segment saw sales rise 13% to $1.67 billion.
The company is situated in St. Louis, Missouri. Emerson, which started off selling fans and electric motors a century ago, has been shifting its focus to technological solutions in order to take advantage of the growing industrial software industry.
Emerson earned $1.05 per share excluding items, beating Wall Street projections of 99 cents per share.
In the quarter ended Dec. 31, the company's net income increased to $896 million, or $1.50 per share, up from $445 million, or 74 cents per share, a year earlier.
In Emerson's first quarter, net revenue increased by 8% to $4.5 billion.