Emerson Electric Co.NYSE
Wed, Oct. 12, 10:57 AM
- Emerson Electric (EMR -1.2%) is downgraded to Sell from Neutral with a $44 price target, cut from $53, at UBS, which says analysts need to lower estimates to reflect EMR's portfolio transformation, pension headwinds and end market pressures.
- UBS expects EMR's 2017 earnings estimates to decline significantly as the company closes on the major components of its portfolio transformation: divesting network power, motors and drivers, and power generation for $4.3B, and acquiring PNR's valves and controls business for $3.1B.
- Based on recent order trends, the firm expects sales for both EMR's existing process automation business and the V&C acquired business to decline organically in 2017.
Thu, Sep. 22, 7:50 AM
- Trailing three-month orders as of the end of August decreased 2.5%, reflecting difficult conditions in energy and general industrial markets.
- Percentage change vs. prior year by division: Process Management -15% to -10%; Industrial Automation -10% to -5%; Network Power 10% to 15%; Climate Technologies 5% to 10%; Commercial & Residential Solutions -5% to 0.
- SEC Form 8-K
Thu, Sep. 15, 5:36 PM
Wed, Sep. 7, 10:09 AM
- Shell Australia has chosen Emerson (EMR +0.3%) to provide automation maintenance and reliability services for Shell's Prelude Floating Liquefied Natural Gas facility.
- The size of six aircraft carriers, Prelude is the world's largest floating production facility. It will process natural gas collected from subsea wells almost 300 miles offshore from Broome, Western Australia.
Tue, Aug. 30, 7:52 AM
- Emerson Electric (NYSE:EMR) is extending its long-time presence and leadership in "cold chain" management with the acquisitions of Locus Traxx and PakSense.
- These investments in cargo solutions will allow the company to provide consistent and safe control of food and other temperature-sensitive goods.
Fri, Aug. 19, 11:29 AM
- "The purchase of Pentair’s (PNR -1.6%) Valves & Controls business adds definitive risk to Emerson’s (EMR -3.8%) earnings over the next several years," says Buckingham Research's Joshua Pokrzywinski, downgrading Emerson to Underperform from Neutral, and cutting the price target to $44 from $49.
- “We believe the strategic overlap is less than ideal."
- Also downgrading is Credit Suisse, to Neutral from Outperform. The price target remains at $57.
- “Investors will be rightly cautious of this pitched ‘strategic deal’ at the wrong time of the cycle,” says Stifel's Robert McCarthy as he maintains his Buy rating. "The perception [will be] that Emerson has caught a falling knife in the same general end market where it struggled for the past two plus years.”
- Previously: Emerson to buy Pentair's valves and controls business for $3.15B (Aug. 18)
Thu, Aug. 18, 5:12 PM
- Emerson Electric (NYSE:EMR) has agreed to buy the Valves & Controls business of Pentair (NYSE:PNR) for $3.15B.
- Pentair shares are up 1.1% after hours.
- It's a move in line with Emerson's two core verticals, particularly combined with Emerson's planned multibillion-dollar divestitures of Network Power, Leroy-Somer and Control Techniques.
- “This acquisition delivers on our strategic plan of investing in Automation Solutions and in markets where we have a global leadership position and see significant long-term growth opportunities,” says CEO David Farr in a statement.
- The deal's expected to close in four to six months.
- Conference call link
Tue, Aug. 2, 3:57 PM
Tue, Aug. 2, 7:38 AM
- Adjusted earnings decreased 5% to $0.80 per share vs. $0.84 in the comparable quarter a year ago.
- Revenue by segment: Process Management -13%; Industrial Automation -11%; Network Power +8%; Climate Technologies -2%; Commercial & Residential Solutions -16%.
- "The third quarter results continued to reflect the low growth global environment facing our businesses today," CEO David Farr said.
- Considering the tough market conditions, the company now expects fiscal year 2016 underlying sales to be down 5-6% (excluding negative currency translation and an impact from completed divestitures) and reported sales to be down 9-10%. Adjusted earnings per share has been revised to $2.90-$3.00.
- FQ3 results
Tue, Aug. 2, 7:20 AM
- Emerson Electric (NYSE:EMR) is selling its network power division to Platinum Equity and other investors in a deal valued at $4B, the company's second announced divestiture on Tuesday ahead of its FQ3 earnings release.
- "By selling Network Power... we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company," CEO David Farr said in the statement.
- Earlier in the day, Emerson agreed to sell its motor and generator business to Nidec for $1.2B.
Tue, Aug. 2, 6:56 AM
Tue, Aug. 2, 4:20 AM
- Confirming earlier reports, Japan's Nidec has agreed to buy Emerson Electric's (NYSE:EMR) motors and electric power generation business for $1.2B, in an all-cash deal expected to be completed by the end of the year.
- The transaction continues Nidec's expansion of its motor business through multiple foreign takeovers, including the acquisition of Emerson's motors and controls division in 2010.
Mon, Aug. 1, 5:30 PM
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Tue, Jul. 26, 12:27 PM
- Japan’s Nidec Corp. is the leading bidder for Emerson Electric’s (EMR +0.9%) motors and drives unit in a sale that could fetch ~$1B, Bloomberg reports.
- Two Chinese groups reportedly also have expressed interest in the motors and drives business, and a winner for the auction could be announced as soon as this week.
- Nidec is the world’s biggest maker of precision motors used in hard disk drives and other products, and it bought EMR’s motors and appliance controls business in 2010.
Fri, Jul. 22, 2:31 PM
- Emerson Electric (EMR +0.2%) has made an offer to acquire pump manufacturer Pentair's (PNR +0.8%) valves and controls business, in a sale could be valued at ~$2B (£1.5B), Reuters reports.
- Such a deal would free PNR from a unit that CEO Randy Hogan considers a laggard in generating cash, while allowing EMR to expand within its core sectors as it seeks to shed its network power and motors and drives businesses, according to the report.
Fri, Jul. 15, 10:18 AM
- BMO technical analyst Russ Visch likes the following stocks:
- MMM: breaks out of 2-yr range, new target $205.
- AYI: successfully tested breakout at $241 level, next target $313.
- CAT: “lots of positive developments” including beginnings of a bearish-to-bullish reversal; rally above $81 would signal uptrend resuming with target of $105.
- EMR: successful retest of recent breakout, rally above $56.75 would open new target of $65.50.
- GE: breaks out of triangle pattern, next target $37, implies nearly 15% gain.
- TYC: has to breakout above $44 resistance, that would open new target of $48.
- UNP: in bearish-to-bullish reversal, new long-term uptrend underway, next target $113, implies 23% gain.
- UPS: to challenge all-time high at $114.40, breakout would be “extremely bullish” with new target $140.
- Also likes: FAST, FLR, JEC, MAS, PH, UTX, VRSK