Emerson sales up slightly
Emerson reported net sales for the first quarter 2014 increased 1 percent to $5.6 billion.
Underlying sales grew 3 percent, as divestitures deducted 3 percent and acquisitions added 1 percent. Global market conditions reflected slowly improving business investment with mixed demand among industries, as the U.S. grew 3 percent, Asia grew 10 percent, and Europe was flat. Strong emerging market growth was led by a 14 percent increase in China.
"Growth was consistent with the modest pace of orders improvement we have seen over the last quarter, which unfolded consistent with expectations," said chairman and chief executive officer David N. Farr. "Although uneven across markets, overall global demand reflects slowly improving business confidence and macroeconomic momentum, particularly in Europe. We continue to see encouraging progress on strategic growth initiatives – especially in emerging markets – with promising opportunities for further investment."
Net earnings improved by 2 percent to $462 million, compared to $454 million in the same period last year.
Process Management net sales grew 8 percent, supported by continued strength in global energy and chemical markets. Growth resumed in the U.S., with sales up 6 percent, and Asia increased 14 percent, led by robust growth in China across the segment.
Industrial Automation net sales increased 1 percent due to a 1 percent contribution from currency translation. Underlying sales were unchanged from the prior year, with the U.S. flat, Asia up 9 percent, and Europe down 5 percent, as recovery continued at a slow and uneven pace for industrial goods. Growth in the fluid automation, motors and drives, electrical distribution, and materials joining businesses was offset by weak demand in power transmission markets. T
Network Power net sales decreased 11 percent and underlying sales grew 2 percent, which excludes a 12 percent deduction for the embedded computing and power divestiture (closed at the end of November) and a 1 percent deduction for currency translation. Underlying sales in the U.S. and Asia increased 2 percent and Europe was up slightly, led by robust growth in global telecommunications infrastructure markets.
Climate Technologies net and underlying sales grew 5 percent, led by strong demand in the transportation refrigeration business and supported by stable conditions in air conditioning markets. U.S. sales declined slightly, with double-digit increase in temperature controls sales, continued weakness in the field service business, and flat demand in the air conditioning business after mid-teens growth in the prior year.
Commercial & Residential Solutions net and underlying sales increased 3 percent, with the U.S. up 2 percent and international sales up 6 percent. Growth was led by the professional tools, food waste disposers, and 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.
