Emerson Electric indicates it is pursuing potential acquisition targets
Emerson Electric (NYSE: EMR) chairman and CEO David Farr made the following statement in the company's 2Q15 earnings release, indicating that he is planning to pursue substantial acquisition targets.
"Emerson faced significant challenges and market headwinds in the second quarter as economic conditions affected demand across our businesses," said chairman and CEO David N. Farr. "The strength of the U.S. dollar, lower oil prices, and a slowdown in industrial spending dramatically reduced order rates during the quarter resulting in growth below our expectations. At the end of March, trailing three-month underlying orders were negative 8 percent. By taking aggressive actions now and over the next six to nine months, we will be well-positioned to capitalize on new opportunities as the markets recover."
"As we announced at our February investor conference, we fully understand the issues we face with our portfolio composition and end-market headwinds, even though the headwinds are more severe than we anticipated," Farr continued. "We will continue to execute the tactical and strategic actions required to create long-term shareholder value. Our actions have been underway since February, but they will now need to be broader, deeper, and properly measured against our long-term objectives."