What is the primary driver behind the decrease in Emerson's orders?

The primary drivers for the decrease in Emerson's orders in January 2015 were the impact of lower oil prices on capital spending, mixed demand across geographies and markets, and a strong U.S. dollar which negatively affected currency translation by 6 percentage points.

How is the decline in oil prices expected to affect Emerson?

The decline in oil prices has led companies in the process industry, especially upstream oil and gas, to reduce capital spending budgets. Emerson expects these reductions to impact oil and gas-related order rates for at least the next six to nine months.

What is the outlook for Emerson's business in the near term?

Emerson anticipates a challenging environment, describing the next several months as "rough waters" for global industrial companies. This outlook is due to customer evaluation of spending, continued currency headwinds from a strong U.S. dollar, and sustained weakness in Europe and certain emerging markets.

When will Emerson announce its next quarterly results?

Emerson is scheduled to report its second quarter 2015 results on Tuesday, May 5, 2015, with a conference call and webcast scheduled for the same day at 2:00 p.m. ET.

EMR 8-K: Regulation FD — Feb 24, 2015

Summary

Emerson Electric Co. (EMR) filed an 8-K on February 24, 2015, disclosing details about its orders growth for the three months ending January 2015. The report indicates a challenging operating environment, with total orders decreasing mid-single digits year-over-year in January 2015. This decline was primarily attributed to the impact of lower oil prices on capital spending, mixed global demand, and a strong U.S. dollar which negatively affected currency translation. While underlying orders were flat, the company highlighted segment-specific performance, with Process Management and Commercial & Residential Solutions showing moderate growth, offset by declines in Industrial Automation and Network Power. Management reiterated guidance and cautioned investors about anticipated "rough waters" for global industrial companies in the coming months due to economic uncertainties, currency headwinds, and fluctuating energy costs. The company also announced its second quarter 2015 earnings release date for May 5, 2015.

Key Highlights

1Total Emerson orders decreased mid-single digits in January 2015 compared to the prior year, with a mid-single-digit decline also for the trailing three-month average.
2Underlying orders were flat in January 2015, indicating resilience in core business demand despite macro headwinds.
3Lower oil prices are significantly impacting capital spending in the process industry, particularly upstream oil and gas, expected to affect orders for 6-9 months.
4A strong U.S. dollar is a notable headwind, deducting 6 percentage points from total orders in January 2015 and negatively impacting export-driven U.S. customers.
5Process Management and Commercial & Residential Solutions showed moderate underlying order growth, while Industrial Automation and Network Power experienced declines.
6Emerson expects continued "rough waters" for global industrial companies due to economic uncertainty, currency strength, and energy cost fluctuations.
7The company will report second quarter 2015 results on May 5, 2015.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Feb 24, 2015)

Summary

Key Highlights

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