Emerson Elec Order Rate For 3 Months Ended In July Falls 25%
August 25 2009 - 10:07AM
Dow Jones News
Diversified manufacturer Emerson Electric Co. (EMR) said Tuesday
its order rate fell sharply in July as businesses continued to
refrain from investments in capital equipment and systems.
Emerson, whose business lines include factory automation
equipment and software and components for appliances, said its
overall order rate declined 25% in the three-month period ended in
July from the year period. The rate of decline for orders was
similar for the three-month periods ended in June and May.
St. Louis-based Emerson said the consistency in its order trends
indicates the downturn in its business segments and the global
economy is beginning to moderate.
The most severe order decline occurred in Emerson's industrial
automation group where orders fell more than 30% in the July period
from a year ago, about the same rate of decline reported for the
June and May periods.
Emerson's network power group, which provides backup power and
connectivity systems for data centers and telecommunications
networks, continued to be one of company's strongest business
segment as order trends in China helped offset weakness in other
markets. The order rate for network power declined by 15% to 20% in
the July period from year ago.
The company said increased spending in China also aided its
climate control technologies segment where orders declined by 10%
to 15% in the July period. Climate technologies orders were down
20% in the three-month period ended in June.
Emerson's stock was recently trading up 0.77% at $36.78 a
share.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com