Summary
This 8-K filing from Emerson Electric Co. (EMR) on September 13, 2017, provides an update on the company's order trends for the three months ending August 2017. Overall Emerson orders increased by 10% year-over-year in August, with underlying orders (excluding currency) up 9%. This indicates a generally positive demand environment for the company's products and services across its key segments. The Automation Solutions segment showed continued strong momentum, with orders up 10-15% in August, driven by robust demand in North America, particularly in energy, life sciences, and chemical markets. Europe also saw solid growth. The Commercial & Residential Solutions segment experienced more moderate growth, with orders up 5-10% in August. While North American air conditioning demand moderated, the segment benefited from favorable trends in professional tools and strength in Europe and Asia. Investors should note that the company mentioned potential negative impacts on orders in late August and September due to Hurricanes Harvey and Irma, the full extent of which was still being evaluated.
Key Highlights
- 1Emerson's total trailing three-month orders increased by 10% year-over-year in August 2017.
- 2Underlying orders, excluding currency translation, grew by 9% for the three months ending August 2017.
- 3Automation Solutions segment demonstrated strong performance with 10-15% order growth in August, supported by broad-based demand.
- 4North America was a key driver for Automation Solutions, especially in energy, life sciences, and chemical markets.
- 5Commercial & Residential Solutions segment saw mid-single-digit order growth, with North American air conditioning demand moderating.
- 6Hurricanes Harvey and Irma were noted as having a potential negative impact on orders in late August and September, with the full effect still under evaluation.
- 7Emerson announced its fourth quarter and fiscal year 2017 earnings release and conference call for November 7, 2017.