Sept 25 (Reuters) - Emerson Electric Co warned on Tuesday that weak demand from the telecommunications sector hurt its network power equipment, driving the diversified U.S. manufacturer’s overall orders down 5 percent in the three months ended in August.
The maker of wireless networks used in oil and gas production and uninterruptible power supplies warned that overall sales growth in its fourth fiscal quarter - which ends this month - would be weaker than in the third quarter.
“Choppy demand patterns underscored the volatile and uncertain economic climate that continues to trend slightly downward,” the St. Louis-based company said in a filing with the U.S. Securities and Exchange Commission.
It noted that it saw the sharpest declines in Asia, in the face of slowing economies in Australia, China and India.
Emerson became the second major U.S. manufacturer to warn of decelerating demand in two days. Caterpillar Inc late on Monday lowered its 2015 profit goals, saying it expected “fairly anemic” economic growth.
Bernstein Research analyst Steven Winoker noted that the decline in orders - a measure that excludes the effect of exchange-rate fluctuations - was the first such decline since January 2010.
“We continue to see Emerson driving operating leverage going forward but in a decelerating demand environment,” Winoker said.
Emerson shares fell 2.4 percent to $48.82 in early trading on the New York Stock Exchange. Caterpillar was also down 2.4 percent, to $88.67.