Summary
This 8-K filing from Emerson Electric Co. (EMR) on September 15, 2020, provides an update on the company's trailing three-month order trends as of August 2020. The report indicates a challenging demand environment primarily driven by the COVID-19 pandemic and oil market volatility, resulting in a total company order decline. However, a notable positive trend emerged in the Commercial & Residential Solutions segment, which moved into positive order growth, largely due to strength in residential and consumer retail channels. Investors should note that while the Automation Solutions segment continues to face headwinds, the resilience shown by the Commercial & Residential Solutions segment offers a glimmer of positive performance. The company also announced its fourth quarter and full-year 2020 earnings release date for November 3, 2020, signaling upcoming financial results and management commentary on the observed trends.
Key Highlights
- 1Trailing three-month orders for Total Emerson were down 12% year-over-year, with underlying orders down 11% (excluding currency impact).
- 2Automation Solutions segment experienced a significant order decline of 19% year-over-year, with underlying orders down 18%.
- 3Commercial & Residential Solutions segment showed a positive turnaround, with orders up 2% year-over-year, driven by residential and consumer retail demand.
- 4The challenging demand environment is attributed to the ongoing COVID-19 pandemic and oil market volatility.
- 5Emerson announced its Q4 2020 and full-year earnings release date for November 3, 2020, with a subsequent investor conference call.
- 6The filing includes a slide presentation (Exhibit 99.1) providing further detail on platform trailing three-month underlying orders by world area.