Summary
Emerson Electric Co. (EMR) released an 8-K filing on December 17, 2018, providing an update on its order trends for the three months ending November 2018. The report indicates a positive overall increase in orders, with total company orders up 5% year-over-year for the trailing three-month period. This growth was driven by a strong performance in the Automation Solutions segment, which saw a 10% increase in orders, bolstered by global demand for expansion, optimization, and maintenance projects. The Commercial & Residential Solutions segment, however, experienced a slowdown, with orders declining due to weaker demand in China's air conditioning and heating markets, partially offset by steady growth in North America and favorable trends in professional tools markets.
Key Highlights
- 1Total Emerson orders increased by 5% for the trailing three-month period ending November 2018.
- 2Automation Solutions segment orders grew by 10%, driven by broad-based global demand for expansion, optimization, and MRO spending.
- 3Underlying orders for Automation Solutions were up 12%, excluding a 2% negative currency impact.
- 4Commercial & Residential Solutions segment experienced a decline in orders, primarily due to weaker demand in China's air conditioning and heating markets.
- 5North America air conditioning markets and global professional tools markets provided some offset to the weakness in Commercial & Residential Solutions.
- 6Emerson anticipates steady demand for Automation Solutions through fiscal 2019 and expects order trends in Asia for Commercial & Residential Solutions to improve in the second half of fiscal 2019.