Summary
Emerson Electric Co. (EMR) filed an 8-K on December 11, 2019, providing an update on its trailing three-month orders, particularly for November 2019. The report indicates a slight decrease in total orders, with a 1% decline when excluding currency translation impacts. Underlying orders, which strip out currency fluctuations and certain prior-year projects, showed a modest 1% increase. This performance was driven by mixed results across its segments, with Automation Solutions orders remaining flat (up 1% underlying) and Commercial & Residential Solutions orders down 2% (flat underlying).
Key Highlights
- 1Total Emerson trailing three-month orders for November 2019 were down 1%, with underlying orders up 1% after excluding a 2% unfavorable currency impact.
- 2Automation Solutions segment orders were flat, with underlying orders up 1% (excluding currency), but delayed large North America projects due to trade tensions impacted growth.
- 3Underlying orders in Automation Solutions excluding two prior year fleetwide modernization projects were up 3%.
- 4Commercial & Residential Solutions segment orders decreased by 2%, with underlying orders remaining flat after excluding currency impacts.
- 5Asia, Middle East & Africa region showed strong performance in Automation Solutions, with underlying orders up over 10%, supported by infrastructure investment.
- 6Emerson announced upcoming investor events, including the Q1 2020 earnings report on February 4, 2020, and its annual investor conference on February 13, 2020.
- 7The company highlighted that large North America projects continue to face delays, while long-cycle businesses are showing steady growth.
Frequently Asked Questions
In November 2019, Emerson's total trailing three-month orders were down 1%. When excluding the impact of currency translation, underlying orders were up 1%. This suggests a slight underlying demand increase, partially offset by currency headwinds and specific project timing.
Order performance in Automation Solutions was flat, up 1% on an underlying basis. However, growth is being hampered by ongoing trade tensions and geopolitical uncertainty, which are causing delays in large North America projects. Long-cycle businesses within this segment are experiencing steady growth.
The Commercial & Residential Solutions segment saw orders decline by 2%, with underlying orders flat after accounting for currency impacts. While North American air conditioning markets softened, global cold chain markets showed improvement, and European residential heat pump demand remained strong.
Yes, Emerson has scheduled two key investor events: the release of its first quarter 2020 results on February 4, 2020, followed by an investor conference call, and its annual investor conference on February 13, 2020. Both events will be webcast live on Emerson's investor relations website.