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Trailing three-month orders decreased 10 percentage points, reflecting the dramatic drop in oil prices, mixed demand among geographies and markets, and significant strength in the U.S. dollar, which deducted 7 percentage points through currency translation. These economic conditions are having a more significant impact on order rates than previously expected. Underlying orders were down low-single-digits, reflecting modest growth in Commercial & Residential Solutions, flat orders in Process Management, and decreases in other segments. The February orders release is later than the customary timing as the Company sought to gain better visibility into March orders and sales. We now expect second quarter underlying sales to be approximately flat compared with prior year, which excludes unfavorable currency translation of 5 percent and an impact from divestitures of 2 percent. Reported GAAP sales for the second quarter are expected to be down approximately 7 percent.
* Process Management orders trends continued to reflect unfavorable currency translation, which deducted 11 percentage points, including backlog revaluation. Underlying orders were flat, with growth in Europe (including a large power project in Poland) and North America offset by decreases in other world areas. Downstream activity continues to be a positive, particularly in the chemical/petrochemical and power industries.
* Industrial Automation orders were down, reflecting weakness in Europe and unfavorable currency. Underlying orders were down, as continued weakness in power generation and motors and drives more than offset growth in the materials joining and fluid automation businesses. Currency translation deducted 6 percentage points.
* Network Power orders decreased as underlying demand for telecommunications and data center infrastructure investment remained weak. Asia experienced modest growth, but was more than offset by decreases in the Americas and Europe. Currency translation deducted 5 percentage points.
* Climate Technologies orders were down as U.S. HVAC customers continue to work through pre-built inventory driven by regulatory changes for U.S. residential air conditioning. Underlying orders were down low-single-digits, with strong growth in Asia offset by decreases in North America and Europe. Orders in the commercial and industrial refrigeration business remained strong. Currency translation deducted 3 percentage points.
* Commercial & Residential Solutions orders grew modestly, reflecting favorable trends in U.S. residential and commercial construction. Growth was led by the food waste disposers, and storage businesses. Currency translation deducted 2 percentage points. - Source TradeTheNews.com