Nov 20 (Reuters) - Emerson Electric Co said Tuesday it expects order rates to remain “slow and choppy” in coming months as slowing economic growth dampens business investment.
Emerson is one of a handful of U.S. industrial companies that comment on business trends in between quarterly earnings reports. Its interim reports help set analyst expectations.
Total company orders were flat to down 5 percent in the three months through October, matching their pace in the prior three-month period, the industrial conglomerate said in a monthly regulatory filing.
Orders were up 5 percent to 10 percent in Emerson’s process management segment, helped by currency translation. Weak European economies hurt orders in the industrial automation segment and also weighed on Emerson’s network power business.
Global telecommunications and information technology markets are contracting, the company said. Weakness in those markets led Emerson to take a $592 million charge in its most recent quarter and to plan the sale of its $1.4 billion embedded computing and power business. Orders in this business improved.
Orders improved in Emerson’s commercial and residential solutions segment that makes storage products and food waste disposers.