Summary
Emerson Electric Co. (EMR) provided an update on its three-month order trends as of August 2019, indicating a modest overall growth. Total Emerson trailing three-month orders were up 2%, with underlying orders (excluding currency impacts) up 3%. This performance was driven by the Automation Solutions segment, which saw orders increase by 4% and underlying orders by 5%, meeting management's expectations due to stable global demand. Growth in Automation Solutions was particularly strong in Europe and Asia, while North America showed stabilization. The Commercial & Residential Solutions segment, however, experienced a 3% decrease in orders, with underlying orders down 2%. This underperformance was attributed to unfavorable weather conditions in North America and slower conditions in global professional tools markets, slightly missing management's expectations. Despite these challenges, Asia Climate Technologies provided some support with low-single-digit underlying order growth. The company also reminded investors of its upcoming Q4 and full-year 2019 earnings call scheduled for November 5, 2019.
Key Highlights
- 1Total Emerson trailing three-month orders increased by 2% (3% underlying), indicating stable demand.
- 2Automation Solutions orders grew 4% (5% underlying), meeting management's expectations with strong performance in Europe and Asia.
- 3Commercial & Residential Solutions orders declined 3% (2% underlying), falling slightly below expectations due to weather and market conditions.
- 4Underlying order growth in Automation Solutions was supported by continued investment in process and hybrid end markets in Europe, and infrastructure investment in Asia.
- 5Unfavorable weather in North America and slower professional tools markets impacted Commercial & Residential Solutions orders.
- 6Asia Climate Technologies orders showed low-single-digit underlying growth, offering some positive momentum for the Commercial & Residential segment.
- 7Emerson will report Q4 and full-year 2019 results and host an investor call on November 5, 2019.