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Emerson orders fall as customers pull back spending

by on July 25, 2012 12:21 pm BST
 

July 25 |
Wed Jul 25, 2012 8:21am EDT

(Reuters) – Industrial conglomerate Emerson Electric
Co said orders in the trailing three month period to
June fell 3 percent, hurt by a stronger U.S. dollar and a
slowing global economy.

Many customers have started to pull back on investment owing
to a tenuous global business environment, the company said in a
statement.

Rival Rockwell Automation Inc on Wednesday cut its
full-year forecasts below Wall Street estimates citing slower
growth in Latin America and emerging markets in Asia, as well as
a strong dollar.

Emerson said its process management segment reported a 5 to
10 percent growth in its trailing three-month orders, spurred by
demand from oil and gas producers.

Industrial Automation orders fell because of the segment’s
high European exposure compared with other Emerson businesses,
the company said.

Total company orders in the three months to June were flat
to down 5 percent from a year earlier, in line with the
company’s performance in the three months to May period.

Emerson shares closed at $45.35 on Tuesday on the New York
Stock Exchange.