Emerson Electric Co. (EMR) lowered its full-year earnings forecast, acknowledging that its diversified mix of businesses and markets is providing little cover from the weak economic conditions.

Emerson, like other industrial companies, has been bracing for falling demand by throttling down its production, reducing the number of its employees and cutting expenses. But the company said the downturn has been wider and more severe than forecast earlier this year.

"We have seen this weakness broadly across our five business segments and the end-markets we serve, including residential, nonresidential and capital businesses," said Chief Executive and President David N. Farr. The company makes industrial-automation equipment, power network gear, appliance parts and systems and components for heating and cooling equipment.

The tough business conditions affecting Emerson as well as other diversified manufacturers including Danaher Corp. (DHR) and Parker Hannifin Corp. (PH), which compete in some of the same markets.

St. Louis-based Emerson now sees full-year earnings of $2.40 to $2.60 a share, down from its February forecast of $2.70 to $2.95 a share. The company also expects net sales for the fiscal year to fall 13% to 15% to $21 billion to $21.7 billion. Sales are expected to be hurt by about 5% because of currency translations, but boosted by 1% because of acquisitions.

Wall Street analysts polled by Thomson Reuters had expected the company to earn $2.47 a share this year on sales of $22.1 billion.

Net sales for the fiscal second quarter through the fiscal fourth quarter, which ends in September, are expected to be down 16% to 19%. Emerson anticipates expects restructuring expenses of about $200 million to $250 million. The company anticipates spending about $1 billion on acquisitions. Free cash flow is projected at $2.5 billion.

Emerson's shares were recently up $1.13, or 3.7%, at $32.02. Emerson's stock has lost one-third of its value from September.

(John Kell contributed to this report.)

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com