Item 7.01 Regulation FD Disclosure
The following information is furnished pursuant to Regulation FD.
Emerson Three-Month Orders, Including Foreign Currency Translation (Percentage change versus prior year; trailing three-month averages, excluding acquisitions and divestitures, including currency translation)
Sept '20 Oct '20 Nov '20 Automation Solutions (20) to (15) (20) to (15) (15) to (10) Commercial & Residential Solutions 5 to 10 10 to 15 15 to 20 Total Emerson (10) (10) to (5) (5) to 0 Orders Comments
Total Emerson trailing three-month orders were down 4 percent with underlying orders down 5 percent, excluding 1 percent of favorable currency impact.
Favorable orders trends were driven from recent lows primarily by day-to-day KOB3 business and the emergence of some KOB2 business. Project delays and cancellations, however, continue to impact the KOB1 environment and funnel. Overall we see steady improvements in customer site access, which is critical for KOB3 business, despite a broad range of COVID-19 rules and regulations around the world.North America was down 22 percent and continues to be one of the most heavily impacted world areas. Despite ongoing energy market challenges, we are seeing relative strength in power, life sciences, food and beverage, refining, biorefining, and chemical markets.Asia was down 4 percent on an underlying basis, as relative strength inChina , up 5 percent, was more than offset by the rest of the region. TheMiddle East &Africa was down 16 percent, however key markets of theUAE ,Saudi Arabia , andOman are showing favorable operating and staffing trends in energy and chemical markets. Lastly,Europe was down 2 percent, as relative strength in discrete and life science markets was more than offset by ongoing energy demand weakness. Orders for Automation Solutions exclude orders forOpen Systems International (OSI) Inc. , which exceeded$55 million through November and are expected to exceed$85 million for the full first quarter. These results reflect momentum in the advanced grid management and renewables integration marketplaces as well as Emerson's revenue synergy efforts. Emerson Commercial & Residential Solutions orders were up 16 percent and were up 14 percent on an underlying basis, excluding 2 percent of favorable currency impact. Overall strength of orders was primarily driven by demand for residential-oriented products and solutions, including HVACR compression and controls technology, smart thermostats, heat pump technology, and other home products. All businesses showed positive growth except professional tools, which was down low single digits but improving. Additionally, all world areas showed positive growth.North America drove the orders momentum with growth of 17 percent, primarily attributable to residential air conditioning demand.Europe underlying orders grew by 11 percent, with ongoing environmental regulatory investments and customer demand for heat pump and cooling technologies. Finally,Asia grew by 5 percent, primarily driven byChina which grew 7 percent.
Further orders details are furnished in the supplementary slides as Exhibit 99.1.
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Upcoming Investor Events
Today at
OnTuesday, February 2, 2021 , Emerson will report its first quarter 2021 results prior to market open. Emerson senior management will discuss the results during an investor conference call that same day. Participants can access a live webcast available at www.emerson.com/financial at the time of the call, likely beginning at2 p.m. Eastern Time . A replay of the call will remain available for 90 days. Additionally, conference call slides will be posted in advance of the call on the website. OnTuesday, February 16, 2021 , Emerson will host its Annual Investor Conference. Emerson senior management will discuss strategy and the longer-term outlook for the company. Participants can access a live webcast available at www.emerson.com/financial at the time of the webcast, likely beginning at8 a.m. Eastern Time . A replay of the webcast will remain available for 90 days. Additionally, webcast slides will be available on the website.
Forward-Looking and Cautionary Statements
Statements in this Current Report on Form 8-K and furnished in Exhibit 99.1 that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the scope, duration and ultimate impact of the COVID-19 pandemic as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with theSEC . Underlying orders discussed herein exclude the impact of currency translation. --------------------------------------------------------------------------------
Item 9.01 Financial Statements and Exhibits
(d) Exhibits. Exhibit Number Description of Exhibits 99.1 Slide Presentation - Trailing three-month underlying orders detail by platform. 104 Cover Page Interactive Data File - the
cover page XBRL tags are embedded within
the Inline XBRL document.
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