Emerson sales down 7 percent
Emerson announced that net sales in the second quarter of $5.4 billion decreased 7 percent, with underlying sales flat.
Global customers in oil and gas and industrial markets, particularly energy-related, reduced spending faster and deeper than expected as a result of the significant decline in oil prices and strength of the U.S. dollar. By geography, demand was mixed with the Middle East/Africa up 8 percent, Europe up 2 percent, and Asia up 1 percent, while the U.S. was down 3 percent and Latin America was down 7 percent.
Underlying sales were led by modest growth in Commercial & Residential Solutions, reflecting favorable trends in U.S. construction, and in Process Management which benefited from a strong backlog position coming into the quarter.
Net earnings of $973 million, or $1.42 per share, compared to earnings of $547 million, or 77 cents, in the same period last year. Excluding a 77 cent gain on the sale of the power transmission solutions business, adjusted earnings per share decreased 16 percent to 65 cents.
Process Management net sales decreased 3 percent. Underlying sales increased 2 percent supported by strong backlog and market penetration gains.
Industrial Automation net sales were down 16 percent, with underlying sales down 2 percent as currency translation deducted 6 percent and divestitures deducted 8 percent.
Network Power net sales decreased 9 percent, with underlying sales down 3 percent as currency translation deducted 5 percent and divestitures deducted 1 percent.
Climate Technologies net sales decreased 6 percent, as U.S. air conditioning customers work through pre-built inventory from the previous two quarters that was driven by regulatory changes that were effective Jan. 1, 2015.
Commercial & Residential Solutions net sales increased 1 percent, with underlying sales up 3 percent, led by solid market conditions in the U.S.
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.
