What is the overall trend in Emerson's orders as of December 2018?

As of December 2018, Emerson reported that its total trailing three-month orders increased by 5% year-over-year. On an underlying basis, which excludes currency translation impacts, orders were up 7%, indicating positive organic demand.

Which business segment is driving Emerson's order growth?

The Automation Solutions segment is the primary driver of order growth. For the trailing three months ending December 2018, this segment saw orders increase by 8%, and underlying orders grew by 12%, signaling robust demand in its key markets.

What is causing the slowdown in the Commercial & Residential Solutions segment?

The decline in the Commercial & Residential Solutions segment, down 3% in orders (2% underlying), is largely attributable to weaker market conditions in Asia, particularly China, which experienced slower air conditioning and heating markets and higher channel inventory. However, excluding Asia, this segment showed positive underlying order growth in North America and Europe.

What are the key end markets contributing to the growth in Automation Solutions?

Growth in Automation Solutions is supported by strong demand in several key end markets. Specifically, Upstream Oil & Gas and Midstream Pipelines & Terminals showed significant underlying order growth of 15% or more. Other positive contributors include Metals & Mining, Chemical, and Liquefied Natural Gas markets.

EMR 8-K: Regulation FD — Jan 30, 2019

Summary

Emerson Electric Co. (EMR) filed an 8-K on January 30, 2019, providing an update on its order trends for the trailing three months ending December 2018. The company reported a 5% increase in total trailing three-month orders, with underlying orders (excluding currency impacts) up 7%. This growth was primarily driven by the Automation Solutions segment, which saw an 8% increase in orders and a 12% rise on an underlying basis. The Automation Solutions segment benefited from strong demand in key end markets such as Upstream Oil & Gas and Midstream Pipelines & Terminals, with significant contributions from maintenance, repair, and operations (MRO) spending, as well as projects focused on upgrades and expansions. While the Commercial & Residential Solutions segment experienced a slight decline (-3% orders, -2% underlying) primarily due to softer markets in Asia, excluding that region, underlying orders were positive, indicating resilience in other areas like North America and Europe. The filing also highlighted upcoming investor events, including the Q1 2019 earnings release and an annual investor conference.

Key Highlights

1Total Emerson trailing three-month orders increased 5%, with underlying orders up 7% in December 2018.
2Automation Solutions segment showed strong growth: orders up 8%, underlying orders up 12%, driven by MRO and project upgrades.
3Key Automation Solutions end markets like Upstream Oil & Gas and Midstream Pipelines & Terminals exhibited robust underlying order growth (15%+).
4Commercial & Residential Solutions orders declined 3% (underlying down 2%) primarily due to weakness in Asian markets, though North America and Europe showed steady growth.
5Underlying orders in Asia Pacific & Middle East/Africa were up 10%, driven by broad market demand and infrastructure build-outs.
6Emerson is scheduled to report Q1 2019 results on February 5, 2019, and will host its annual investor conference on February 14, 2019.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Jan 30, 2019)

Summary

Key Highlights

Frequently Asked Questions