Emerson: Residential Demand in the U.S. Boosts Appliance Sales
Aug 7, 2013
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Emerson's Commercial & Residential Solutions, which includes its residential and commercial appliance business, had an underlying sales increase of 4% in the third quarter of its current fiscal year. The growth in underlying sales was driven by 6% growth in the United States, which was supported by strong demand in residential end markets.
After factoring in a 6% deduction from divesting its Knaack jobsite storage business, the Commercial & Residential Solutions segment reported an overall 3Q sales decline of 2%.
Emerson expects growth in this business segment to continue in the near term, with solid residential and improving nonresidential demand in the United States and stabilization in Europe.
Commercial & Residential Solutions appliance products include InSinkErator brand food waste disposers, instant hot water dispensers, and commercial foodservice food waste pulper systems.
Emerson, based in St. Louis, MO, reported overall net sales for the third quarter of its fiscal year were $6.3 billion, down 2% from the previous FY 3Q. Lower net sales in the quarter, which ended June 30, 2013, reflecting a sluggish economic environment and difficult comparisons, the company said, with recovery from Thailand flooding driving robust 3Q sales in the previous year.
"As expected, demand was slow in the quarter as economies around the world struggled for growth," said Chairman and CEO David N. Farr. "Low levels of business investment continue to reflect a cautious climate, particularly in mature markets. Despite some soft pockets, emerging markets were encouraging, as strategic investments generated growth. The near-term is expected to remain slow, but orders growth has resumed, suggesting the economic environment is beginning to stabilize and improve."
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