What is the overall trend in Emerson's order book as of May 2019?

As of May 2019, Emerson Electric Co. reported that its trailing three-month orders increased by 1% year-over-year. Excluding the impact of currency fluctuations, underlying orders were up by 4%, indicating solid organic demand.

What is the impact of currency on Emerson's reported orders?

A stronger U.S. dollar had an unfavorable currency translation impact of 3% on total Emerson orders and also affected the Automation Solutions segment orders. Underlying order growth figures exclude this currency impact.

What are the near-term expectations for oil and gas spending?

For the Americas region, Emerson expects oil and gas spending to improve modestly through the remainder of the fiscal year. Discrete manufacturing end markets are also expected to improve after channel inventory re-balances in the next couple of months.

EMR 8-K: Regulation FD — Jun 17, 2019

Q: How did the different business segments perform in terms of orders?

The Automation Solutions segment performed well, with orders up 3% and underlying orders up 6%, driven by project activity and MRO spending. However, the Commercial & Residential Solutions segment saw orders decline by 2%, with underlying orders remaining flat, largely due to softness in Asia Climate Technologies exacerbated by trade tensions and inventory adjustments.

Summary

This 8-K filing from Emerson Electric Co. (EMR) provides an update on the company's trailing three-month order trends as of May 2019, offering insights into divisional performance and geographic performance. The overall trend shows modest growth, with total Emerson orders up 1% year-over-year, driven by a 4% increase in underlying orders. This performance was slightly tempered by a 3% unfavorable currency impact due to a stronger U.S. dollar. Investors should note the differing performance between Emerson's two main segments: Automation Solutions is showing robust growth, while Commercial & Residential Solutions is facing headwinds, particularly in Asia. The Automation Solutions segment reported a 3% increase in orders, with underlying orders up 6%. This strength is attributed to project activity and MRO spending, with positive growth across all world areas, particularly in Asia, Middle East & Africa, and Europe. In contrast, the Commercial & Residential Solutions segment saw orders decline by 2%, with underlying orders flat. This segment's performance was negatively impacted by trade tensions and channel inventory re-balancing in Asia Climate Technologies, though North American air conditioning demand provided some support. The filing also confirms Emerson's third quarter 2019 earnings release date and conference call details.

Key Highlights

1Total Emerson trailing three-month orders increased 1%, with underlying orders up 4% (excluding currency impact).
2Automation Solutions segment showed strong underlying order growth of 6%, driven by long cycle businesses and project activity.
3Commercial & Residential Solutions segment experienced a decline in orders (-2%), with underlying orders flat, primarily due to weakness in Asia Climate Technologies.
4Unfavorable currency translation had a 3% negative impact on total Emerson orders and Automation Solutions orders.
5Growth in Automation Solutions was positive across all geographic regions, with notable strength in Asia, Middle East & Africa, and Europe.
6Americas region showed stable underlying order trends for Automation Solutions, with modest expected improvement in oil & gas spending.
7Emerson will report its Q3 2019 results on August 6, 2019, with a conference call to follow.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Jun 17, 2019)

Summary

Key Highlights

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