Emerson Electric Co. (NYSE:EMR) Files An 8-K Regulation FD Disclosure

Emerson Electric Co. (NYSE:EMR) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure

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The following information is furnished to Regulation FD.

Emerson Three-Month Orders, Including Foreign Currency Translation

(Percentage change versus prior year; trailing 3-month averages, excluding acquisitions and divestitures, including currency translation)

Sept ’18

Oct ’18

Nov ’18

Automation Solutions

0 to 5

5 to 10

Commercial & Residential Solutions

0 to 5

-5 to 0


Total Emerson

0 to 5

November 2018 Orders Comments

Emerson trailing three-month orders increased 5 percent and underlying orders remained in the 5 to 10 percent range discussed on our fourth quarter 2018 earnings conference call in November. The impact of currency translation was unfavorable across both business platforms.

Automation Solutions orders increased 10 percent and were up 12 percent on an underlying basis excluding unfavorable currency of 2 percent, supported by broad-based global demand. All world areas were positive, led by North America, Asia (in particular China) and Europe, reflecting continued strong demand for small and mid-sized projects focused on expansion and optimization of existing assets and maintenance and repair (MRO) spending. We expect steady demand for brownfield projects and MRO through fiscal 2019. Globally, we continue to see favorable trends in capital formation for investments in LNG midstream infrastructure as well as downstream capacity, as sovereign interests trend toward increased energy and refining self-sufficiency.

Consistent with our first quarter and fiscal 2019 outlook framework presented on the fourth quarter 2018 earnings conference call in November, Commercial & Residential Solutions orders were impacted by slower demand in Asia, driven by China air conditioning and heating markets. This was partially offset by steady growth in North America air conditioning markets, broad-based demand in Europe and favorable trends in global professional tools markets. We expect order trends in Asia to improve as comparisons become easier and spending recovers in the second half of fiscal 2019.

Forward-Looking and Cautionary Statements

Statements in this Current Report on Form 8-K that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include economic and currency conditions, market demand, pricing, protection of intellectual property, cybersecurity, tariffs, and competitive and technological factors, and the impact of the Tax Cuts and Jobs Act, among others, as set forth in the Company’s most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. Underlying orders discussed herein exclude the impact of currency translation.

About Emerson Electric Co. (NYSE:EMR)

Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.

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