NEW YORK: Electrical products maker Cooper Industries Plc expects first-quarter sales to meet or beat the high end of its forecast, citing strong industrial and utility markets and growth in developing economies.
Its first-quarter sales growth forecast is 4 percent to 6 percent.
The company expects its profit to be near the upper end of its first-quarter forecast, which calls for earnings from continuing operations between 97 cents and $1.01 a share. The average Wall Street estimate was 99 cents, as compiled by Thomson Reuters I/B/E/S.
Cooper gets most of its sales from industrial and utility markets and over the years has reduced its reliance on housing and commercial construction markets, which remain "depressed," executives said at an annual analyst meeting.
"The US commercial markets are bouncing off the bottom," finance chief Dave Barta said. "A true recovery will be very, very slow."
Cooper kept its full-year forecast unchanged. It calls for profit from continuing operations of $4.15 to $4.35 a share.
The company spent $1.1 billion on 31 acquisitions over the past five years. It said its deal pipeline remains full with potential acquisitions of private equity assets. Cooper could spend upwards of $500 million on a deal if the price was right, Chief Executive Kirk Hachigian said.
"It's not hard to find properies, it's hard to find the right value," Hachigian said.
Most of Cooper's deals have been outside its home market.
Cooper shares were up 0.6 percent to $60.47 after being lower before the comments.
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