Emerson, the Ferguson-based maker of industrial equipment and garbage disposals, reported fiscal fourth-quarter profit that beat analysts' estimates after cost reductions including job cuts.

Net income dropped to $506 million, or 67 cents a share, from $688 million, or 88 cents, a year ago. Profit beat the 60-cent average estimate of 17 analysts surveyed by Bloomberg. Emerson also boosted its dividend by 1.5 percent.

Chief Executive David Farr has slashed inventories and cut more than 20,000 jobs since the end of fiscal 2008 to lower expenses amid sagging demand. Emerson said sales for fiscal 2010, excluding the effect of currency translation and acquisitions, will be down 5 percent to 7 percent.

"The shape and speed of the recovery remains unknown, and we expect weakness to continue in the near-term," Farr said in the statement.

Sales tumbled 21 percent to $5.32 billion, topping analysts' estimates of $5.31 billion. A lower tax expense helped profit by 7 cents a share, the company said.

Emerson generated $2.6 billion in free cash flow in fiscal 2009, matching 2008 levels. The company said its board increased the quarterly cash dividend to 33.5 cents a share from 33 cents. The dividend will be payable on Dec. 10 to shareholders of record on Nov. 13.

"Emerson's balance sheet remains solid, enabling the company to pursue tuck-in acquisitions," Joel Levington, director of corporate credit for Brookfield Investment Management Inc., said. The firm doesn't own shares of Emerson.

Emerson forecast sales in the current quarter will be down 17 percent to 20 percent, excluding currency translation, acquisitions and divestitures.

"We know we have six more challenging months," Farr said on a conference call today. "I'm looking forward to growth as we come into the second half of 2010."