Emerson sales decline 2 percent
Emerson reported that sales for the second quarter declined 2 percent to $5.8 billion.
The manufacturer of industrial automation equipment said disruptive winter weather and weak first quarter GDP growth in the U.S., and slower implementation of large projects in the global process industry hampered growth.
By geography, the U.S. grew 3 percent, Asia increased 4 percent, including China up 9 percent, and Europe was up 1 percent, while Middle East/Africa declined 9 percent following robust growth in the prior year.
Earnings declined by 4 percent to $554 million from $578 million in the same period last year.
Process Management net sales grew 4 percent and underlying sales increased 1 percent, as acquisitions added 4 percent and currency translation deducted 1 percent. Global oil and gas, power, and chemical markets continued to support growth, although customers stretched out execution of large projects, slowing down the pace of spending and reflecting a more cautious sentiment.
Industrial Automation sales increased 2 percent as demand improved for capital goods, particularly in emerging markets, which were up 6 percent. The U.S. and Europe were flat, as sales across mature markets were unchanged from the prior year, while Asia grew 6 percent, with robust growth in China.
Network Power net sales decreased 21 percent and underlying sales grew 1 percent, as the Artesyn divestiture deducted 21 percent and currency translation deducted 1 percent. Underlying sales in the U.S. grew 1 percent, Europe decreased 3 percent, and Asia increased 4 percent.
Climate Technologies net sales increased 5 percent, led by strength in global refrigeration markets, with transportation particularly robust. Underlying sales grew nearly 6 percent, as currency translation deducted less than 1 percent, with the U.S. up 2 percent, Asia up 11 percent, and Europe up 3 percent.
Commercial & Residential Solutions sales grew 1 percent, as harsh winter weather contributed to 1 percent decline in the U.S., which was more than offset by 8 percent growth in international markets. Strong growth in the professional tools, wet/dry vacuums, and food waste disposers businesses offset declines in the storage businesses.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
