(RTTNews) - Diversified global technology company Emerson Electric Co. (EMR: News ) on Tuesday reported lower profit for the fourth quarter, reflecting higher rationalization expense besides 27% drop in net sales. Per share earnings fell from last year, but topped the Street view. Further, the company hiked its quarterly cash dividend by 1.5%, and said it is "well positioned for economic recovery" for which the shape and speed remains unknown.

The St. Louis, Missouri-based company's fourth-quarter net income was $506 million, down from $688 million in the year ago quarter. Per share earnings fell 24% to $0.67 from $0.88 in the same quarter of last year.

On average, 18 analysts polled by Thomson Reuters expected the company to post earnings of $0.60 per share. Analysts' estimates typically exclude special items.

The company noted that the rationalization expense, which was $62 million higher in the quarter versus the same period last year, negatively impacted the earnings per share comparison by $0.06 per share. This was essentially offset by lower tax expense as expected in the fourth quarter that had a positive impact of $0.07 on the earnings per share comparison.

Income from continuing operations dropped 27% to $506 million from $690 million a year earlier.

Quarterly net sales totaled $5.32 billion, a decline of 21%, compared to the previous year's net sales of $6.69 billion. Thirteen Wall Street analysts had a consensus revenue estimate of $5.30 billion for the quarter.
Underlying sales in the quarter fell 20%, which excludes a 2% unfavorable impact from currency exchange rates and a 1% positive impact from acquisitions.

David Farr, Chairman, Chief Executive Officer and President of Emerson, said, "Our fourth quarter results signify improving revenue trends as well as the positive benefits of our aggressive structural repositioning for greater efficiency."

Further, the company said though it expects weakness to continue in the near-term, it is benefiting from its aggressive investments in new technologies to speed new product introductions, and in emerging markets, which currently represent 32% of total revenue.

The company's Process Management segment fetched fourth-quarter sales of $1.65 billion, down 13% from $1.89 billion last year. This included a 13% underlying sales decline, a 3% unfavorable impact from currency translation and a 3% favorable impact from acquisitions. Segment earnings dropped to $286 million from $416 million reported a year earlier.

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