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| 8-K - 8-K - EMERSON ELECTRIC CO | fy2020orders8-kjunerel.htm |
Exhibit 99.1 Emerson Orders Update June 17, 2020 Forward-Looking and Cautionary Statements in these slides 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 the SEC. Underlying orders discussed herein exclude the impact of currency translation. 1
Emerson Underlying Order Trends Trailing 3-Month Average vs. Prior Year 20% 2016 2017 2018 2019 2020 15% 10% Automation Solutions 5% Emerson 0% Commercial & (5%) Residential Solutions 2H Expectation (10%) Trailing 3M Underlying % Chg. Mar Apr May Automation Solutions ~(1%) ~(7%) ~(13%) (20%)- (15%) Commercial & Resi. ~(5%) ~(15%) ~(20%) (10%) Emerson ~(3%) ~(10%) ~(15%) (20%) Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Oct-15 Apr-16 Oct-16 Apr-17 Jun-18 Jun-19 Jun-20 Jun-16 Jun-17 Feb-18 Feb-19 Feb-20 Feb-16 Feb-17 Aug-17 Dec-17 Aug-18 Dec-18 Aug-19 Dec-19 Aug-20 Dec-15 Aug-16 Dec-16 Percentage change versus prior year; underlying trailing three-month averages, excluding acquisitions, divestitures and currency translation Orders data includes the Valves & Controls acquisition results in all periods presented, including on a pro forma basis for periods prior to the acquisition close April 28, 2017. 2
Emerson Automation Solutions Trailing 3-Month Underlying Orders: Down ~13% North America Europe Mar Apr May T3M Mar Apr May T3M ~(5%) ~(30%) ~(30%) ~(20%) ~(5%) ~(20%) ~(10%) ~(10%) • Oil & gas production curtailments impacting spend • Early signs of stabilization • Overall COVID-19 declines partially offset by favorable • Steady chemical investments in northern and central EU, and some demand in life sciences, medical and food & beverage LNG and nuclear project demand in southern EU • Increase in power maintenance outages supporting KOB3 • Success with competitive displacement wins while most hydrocarbon outages delayed to fall season • Renewable biomass investments accelerating Middle East & Africa Mar Apr May T3M ~40% ~(20%) ~(15%) ~5% • Broad oil & gas slowdown in Kuwait, Iraq and Oman • Hydrocarbon value chain projects continue to move forward in Saudi Arabia and UAE Asia Pacific Latin America Mar Apr May T3M Mar Apr May T3M ~5% ~(10%) ~(5%) ~(5%) ~10% ~(25%) ~(30%) ~(15%) • China T3M orders down ~5% • Oil & gas and automotive contraction across region • Broad COVID-19 business closures • Recent chemical momentum in China, India and Singapore • Challenging YoY comparisons in Mexico oil & gas • Labor shortages drive workforce efficiency improvements and remote segment services demand • Modest growth in Chile metals & mining and Brazil • KOB3 Orders stable with strength in Specialty Chemical midstream sectors Early Signs of Stabilization in Most World Areas Continues to Support Q3 Orders Trough -- Closely Watching North America for Trough 33
Emerson Commercial & Residential Solutions Trailing 3-Month Underlying Orders: Down ~20% North America Europe Mar Apr May T3M Mar Apr May T3M ~flat ~(40%) ~(20%) ~(20%) ~5% ~(25%) ~(25%) ~(15%) • Commercial construction and cold chain demand remain • Commercial HVAC and professional tools remain dampened due to COVID-19 weak • Professional tools demand stable, but at low level • Residential heat pump market remains steady • Home improvement activity remains steady despite COVID-19 downturn • Slow early cooling season in residential HVAC Middle East & Africa Mar Apr May T3M ~10% ~(40%) ~(45%) ~(20%) • COVID-19 economic recovery and reopening delays negatively impact orders momentum • Availability of labor for projects remains a challenge Latin America Asia Pacific Mar Apr May T3M Mar Apr May T3M ~10% ~(55%) ~(35%) ~(30%) ~(15%) ~(15%) ~(30%) ~(20%) • COVID-19 case growth in Brazil and Peru heavily • China T3M orders down ~10%, with stimulus expected to bolster impacting demand near term demand • Commercial AC showing early signs of stabilization • India slow COVID-19 reopening after prolonged lockdown Sequential Order Activity Showing Early Signs of Stabilizing in Most World Areas -- Overall, Home Improvement Is Holding While Commercial Markets Remain Weak Emerson Confidential 44