Emerson's Decline In Orders Continues To Stabilize In August

Diversified manufacturer Emerson Electric Co. (EMR) said Thursday the rate of decline in its orders continued to stabilize in August.

The St. Louis-based company said overall orders fell by 25% to 20% for the three-month period ending in August, compared with the same period a year earlier. The August report is a slight improvement over the three-month period ending in July when orders were down 25%, and in June when orders fell by 30% to 25%.

The company said the decline is consistent with the sales outlook it offered in early August.

Orders for several of Emerson's major business groups continued to reflect the pullback in businesses' capital spending on equipment and maintenance work. Sharp reductions in demand caused by the global recession have prompted many companies to shelve plans for expanding plants and production lines.

Orders in the Industrial Automation segment, which serves the power generation industry, were down about 30% in the August period, the same rate of decline reported in the June and July periods. Orders in the Process Management segment, which has exposure to the chemical and refining industries, were down 25% to 20% in July, also the same rate of decline seen in the July and June periods.

Orders in Climate Technologies were down 15% to 10% for the second straight period.

Emerson's stock was recently trading down 43 cents, or 1.1%, at $39.62.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; [e-mail]