Emerson Electric (EMR) Reports September Decline in Orders
Tweet
Share
E-mailGet Alerts EMR Hot Sheet
Join SI Premium – FREE
Emerson Electric Co. (NYSE: EMR) reported trailing three-month orders decreased as global economic growth continued to decelerate. Underlying orders, which exclude favorable currency translation of 1 percentage point, declined 3 percent, as growth in Process Management and Commercial & Residential Solutions was more than offset by weakness in the other businesses.
Comments:
Choppy demand patterns underscored the volatile and uncertain economic climate that continues to trend downward. Inconsistent and sluggish demand is expected to continue until a sustainable global economic catalyst improves visibility and stimulates investment.
Process Management order trends continued to reflect solid investment in oil and gas, chemical, and power end markets. Underlying orders growth, which excludes favorable currency translation of 9 percentage points, slowed slightly due to the weak economic conditions in Europe and increasingly difficult comparisons. The currency translation impact includes favorable backlog revaluation.
Industrial Automation orders reflected slowing global capital goods end markets. Broad geographic weakness was most severe in Europe, where investment remained particularly weak due to the economic environment. Orders declined in all businesses except for modest growth in the fluid automation business. Currency translation deducted 4 percentage points.
Protracted weakness in global telecommunications and information technology end markets continued to adversely affect Network Power. The orders decline was most pronounced in Asia and Europe, partially offset by strength in Latin America. The embedded computing and power business improved as prior year comparisons eased. Currency translation had a negligible impact.
Climate Technologies orders declined slightly, as demand was mixed across end markets and geographies, resulting in sluggish trends overall. In the U.S., the air conditioning business declined modestly and the refrigeration business decreased more substantially, with transportation particularly weak. In contrast, trends in Asia improved while Europe was flat, with the former reflecting moderate growth and the latter benefiting from favorable comparisons. Currency translation deducted 2 percentage points.
Commercial & Residential Solutions order trends remained unchanged, as slower non-residential construction in the U.S. was partially offset by solid demand in residential end markets. Moderate growth in the storage and food waste disposers businesses drove a slight increase in underlying orders, which exclude unfavorable currency translation of 1 percentage point. This growth was partially offset by a decline in the professional tools business, and a decrease in wet/dry vacuums orders, reflecting irregular order patterns due to promotional schedule changes at retailers.
Comments:
Choppy demand patterns underscored the volatile and uncertain economic climate that continues to trend downward. Inconsistent and sluggish demand is expected to continue until a sustainable global economic catalyst improves visibility and stimulates investment.
Process Management order trends continued to reflect solid investment in oil and gas, chemical, and power end markets. Underlying orders growth, which excludes favorable currency translation of 9 percentage points, slowed slightly due to the weak economic conditions in Europe and increasingly difficult comparisons. The currency translation impact includes favorable backlog revaluation.
Industrial Automation orders reflected slowing global capital goods end markets. Broad geographic weakness was most severe in Europe, where investment remained particularly weak due to the economic environment. Orders declined in all businesses except for modest growth in the fluid automation business. Currency translation deducted 4 percentage points.
Protracted weakness in global telecommunications and information technology end markets continued to adversely affect Network Power. The orders decline was most pronounced in Asia and Europe, partially offset by strength in Latin America. The embedded computing and power business improved as prior year comparisons eased. Currency translation had a negligible impact.
Climate Technologies orders declined slightly, as demand was mixed across end markets and geographies, resulting in sluggish trends overall. In the U.S., the air conditioning business declined modestly and the refrigeration business decreased more substantially, with transportation particularly weak. In contrast, trends in Asia improved while Europe was flat, with the former reflecting moderate growth and the latter benefiting from favorable comparisons. Currency translation deducted 2 percentage points.
Commercial & Residential Solutions order trends remained unchanged, as slower non-residential construction in the U.S. was partially offset by solid demand in residential end markets. Moderate growth in the storage and food waste disposers businesses drove a slight increase in underlying orders, which exclude unfavorable currency translation of 1 percentage point. This growth was partially offset by a decline in the professional tools business, and a decrease in wet/dry vacuums orders, reflecting irregular order patterns due to promotional schedule changes at retailers.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Flowers Foods (FLO) Misses Q2 EPS by 3c; Offers Guidance
- Emerson (EMR) PT Raised to $186 at Bernstein SocGen Group
- Robo.ai completes acquisitions, plans interim report for Aug. 24
Create E-mail Alert Related Categories
GuidanceSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
