Orders Down, Attitudes Up for Automation Giants Invensys and Emerson

Despite year-over-year sales declines, companies are seeing signs that the economy may be stabilizing.


Companies Mentioned
Posted on Nov 05, 2009

Two big process automation providers, Invensys plc and Emerson Electric, issued financial reports this week that showed a continuing sag in orders and yet some signs of a possible turnaround in 2010.

For the first six months of its fiscal year ended Sept. 30, 2009, Invensys reported revenue of £1.06 billion, down 2% from the year-ago period.

Operating profit slid 15% to £102 million in the period. Despite the shifting sands of an unstable economy, Invensys’ three divisions — Rail, Operations Management, and Controls — appear to be starting to stabilize, according to Invensys CEO Ulf Henriksson.

Rail helped cushion the top-line decline, increasing sales 9% to £335 million. The Controls division, which manufactures heating, cooling, and refrigeration components, saw just a 1% decline in orders this period, signaling a stabilization of demand in North America and possibly some European countries, the company said.


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