Emerson Electric (TG:EMR)
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From Dec 2019 to Dec 2024

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