Summary
Emerson Electric Co. (EMR) filed an 8-K on March 14, 2017, providing an update on its order trends for the trailing three months ending February 2017. The report indicates a modest recovery in order momentum, with total Emerson orders increasing by 2 percent year-over-year in February, driven by a 1 percent increase in underlying orders excluding currency translation. Specifically, the Automation Solutions segment showed flat orders, benefiting from ongoing capital and MRO spending in energy and general industrial markets, with North America and Asia showing regional growth despite mixed global performance. The Commercial & Residential Solutions segment posted mid-single digit order growth, supported by stable demand in North American air conditioning, solid growth in Asia and Europe, and strength in sensors and controls. Investors should note that these order trends are subject to the risks and uncertainties outlined in Emerson's SEC filings, including economic, currency, and market demand factors.
Key Highlights
- 1Total Emerson trailing three-month orders increased 2% year-over-year for February 2017.
- 2Underlying orders (excluding currency) for total Emerson were up 1% for February 2017.
- 3Automation Solutions orders were flat, supported by favorable spending in energy and general industrial markets.
- 4Automation Solutions saw regional strength in North America and Asia, with improvements in underlying order trends compared to January.
- 5Commercial & Residential Solutions orders increased mid-single digits, driven by steady demand in North America and growth in Asia and Europe.
- 6Key growth drivers for Commercial & Residential Solutions included North American air conditioning, sensors and controls, and professional tools.
- 7Currency translation had a favorable impact of 1% on total Emerson orders in February.