UPDATE 1-Emerson May orders down, but improved from April
NEW YORK, June 18 (Reuters) - Industrial conglomerate Emerson Electric Co (EMR.N) on Thursday said order trends improved sequentially in May from the month before, but continued to show weakness across its global markets.
Emerson said it was still positioning for an economic recovery in late 2010.
Emerson's three-month order rate was down 25 percent in May, compared with declines of between 25 percent and 30 percent in March and April. Exchange rates reduced orders by three percentage points, the company said in a regulatory filing.
Orders in Emerson's process management segment were down 15 percent to 20 percent, while network power orders were down 20 percent, both marking a sequential improvement.
Its industrial automation segment posted a more than 30 percent order drop, the same pace as in the two prior months, the St. Louis-based company said. Emerson cited "very depressed" levels of nonresidential investment and weak demand in the power generation sector.
The pace of order declines slowed in Emerson's appliance and tool business, and the company said consumer-related businesses seemed to be stabilizing, albeit at low levels.
Emerson shares closed at $33.07 on Wednesday. The company will report fiscal third-quarter results on Aug. 4. (Reporting by Nick Zieminski, editing by Maureen Bavdek)
