Summary
Emerson Electric Co. (EMR) released its trailing three-month orders data as of August 2018, providing investors with a snapshot of recent business performance. The company reported a 2% increase in total orders, with underlying orders (excluding currency fluctuations) growing by 7%. This growth aligns with the company's previously communicated range of 5-10% at its annual Investor Conference. The Automation Solutions segment showed a 1% increase in orders, but underlying orders grew by 8%, driven by strong demand for systems and maintenance/repair (MRO) in key regions like the U.S. and China. The Commercial & Residential Solutions segment experienced a 3% increase in orders, with underlying orders up 4%. While North American air conditioning and refrigeration markets showed robust demand, this was tempered by weaker performance in Asia and the Middle East. Investors should note that the orders growth figures incorporate the Valves & Controls acquisition but exclude other acquisitions and divestitures. The company reiterates its forward-looking statements and acknowledges various risks and uncertainties that could impact future results.
Key Highlights
- 1Total Emerson trailing three-month orders increased 2%, with underlying orders up 7%, meeting prior guidance.
- 2Automation Solutions segment saw 1% order growth; underlying orders surged 8%, driven by systems and MRO.
- 3Commercial & Residential Solutions segment orders grew 3%; underlying orders rose 4%.
- 4Strong demand in North American air conditioning and refrigeration markets noted.
- 5Unfavorable currency translation negatively impacted reported orders by approximately 5%.
- 6Orders growth includes the Valves & Controls acquisition but excludes other acquisitions and divestitures.
- 7Company refers investors to its website for Investor Conference materials and webcast replays.