Re: Why is the Automation market declining?
Sep 25, 2000 1:39 pm, by Keven Dunphy
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Here are some numbers for one Process Control company. This data is all collected from Emerson Electric's 1999 annual report. Total sales $14.2 Billion The Process Control portion is $2.9 Billion which grew 7% from 1998. This growth is totally a result of acquisitions (Westinghouse and Daniel). Underlining business declined in sales. The earnings (before taxes) for the division were $313 Million, down from $343 Million in 1998... particularly interesting in light of the acquisitions that "added" to earnings. While this data does generally agree with the point of view that the process control market is declining, I would caution the List from drawing too many conclusions based on Emerson's stock price trends. Since the Process Control division represents less than 25% of the total revenues, Emerson's stock price could be influenced to a much greater extent by events in the remaining 75% of the company. I would encourage everyone to note the money Emerson has invested in its telecom power division... which incidentally is growing both revenue and earnings at rates similar to those turned in by the Process division in the 80s. Great thread everyone! Keven Dunphy
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