Emerson reports drops in orders
Industrial conglomerate Emerson Electric Co (EMR.N) said its orders fell 20 percent to 25 percent in the three months ended in February, matching the pace in the three months ended in January, reflecting a stronger U.S. dollar and weaker demand for capital goods, according to a recent report from Reuters.
"We have not seen any improvement in our end-markets," Emerson officials reported in a regulatory filing on Tuesday. "Our global customers and their end-markets continue to reduce their levels of inventories and business spending levels in anticipation of many quarters of tough economics and weaker demand."
A slowdown in capital spending and currency effects dragged down industrial automation order rates to a range of down 30 percent to down 35 percent. Network power orders were down 15 percent to 20 percent, as weakness in telecommunication and data-center computing markets offset strength in China.
Emerson's climate technologies and appliance and tools segments also reported weaker orders.
St. Louis-based Emerson will discuss the current business outlook on April 7 and will report fiscal second quarter results on May 5, according to the filing.
