Summary
This 8-K filing from Emerson Electric Co. (EMR) on October 28, 2019, provides an update on the company's orders for the trailing three months ending September 2019. Overall, total Emerson orders were flat year-over-year, with underlying orders up 1%. The Automation Solutions segment showed resilience, with orders up 1% and underlying orders up 3%, driven by steady trends in process and hybrid end markets, maintenance and repair (MRO) demand, and brownfield investment. However, order growth was tempered by customer capital spending delays due to trade tensions and geopolitical uncertainty. The Commercial & Residential Solutions segment experienced a 3% decline in orders, with underlying orders down 2%, impacted by unfavorable weather and softening in professional tools and cold chain markets, although offset by stronger residential and heat pump demand in Europe. The company also announced its upcoming fourth quarter and full-year 2019 earnings release and investor conference call scheduled for November 5, 2019. This filing serves as a pre-release of key operational performance indicators, offering investors a snapshot of the business's performance ahead of the official earnings announcement. Investors should note the guidance that underlying orders exclude currency translation, and that forward-looking statements are subject to risks and uncertainties as detailed in Emerson's SEC filings.
Key Highlights
- 1Total Emerson trailing three-month orders were flat year-over-year, with underlying orders up 1% (excluding currency impact).
- 2Automation Solutions segment orders increased 1% (underlying up 3%), supported by MRO demand and brownfield investments, though large project bookings were limited.
- 3Commercial & Residential Solutions segment orders decreased 3% (underlying down 2%), impacted by weather and market softening, partially offset by European demand.
- 4Trade tensions and geopolitical uncertainty are causing customers to push out capital spending plans, affecting order bookings.
- 5The Automation Solutions segment saw steady growth in long-cycle businesses like Final Control (up mid-single digits) and Systems (up low-teens).
- 6Asia, Middle East & Africa region showed strong underlying order growth of over 10% for Automation Solutions.
- 7Emerson Electric will report Q4 and full-year 2019 results on November 5, 2019, with a conference call scheduled for the same day.