United States. Emerson announced that net sales in 2015 were down 9% as the company faced difficult economic conditions for most of the fiscal year. Underlying sales decreased 2% excluding the impact of unfavorable currency conversion of 5% and a divestment impact of 2%.
The company reported that sales were negatively impacted by significant oil price headwinds, a global slowdown in industrial capital spending, weakening demand in emerging markets, and the strength of the U.S. dollar. Global demand mixed with underlying sales in the Middle East/Africa up 3%, and Europe stable, while in North America they were down 2%, Asia down 5%, and Latin America down 9%.
Within the business segments, Commercial and Residential Solutions experienced modest underlying growth, Climate Technologies was stable, while the remaining segments declined.
"Fiscal 2015 was a difficult time as we faced extended downward pressure on sales and earnings from strong economic winds that impacted our business results," said President and CEO David N. Farr.
"While we continue to take important steps to balance our assets and manage costs, underlying order rates remain sluggish in our key markets, as a result of reduced levels of capital expenditure. We expect these difficult market conditions through at least the first half of fiscal 2016. Our focus remains on the efficient execution of our repositioning portfolio. In 2015 we successfully sold our Power Transmission Solutions and InterMetro businesses to strategic buyers who achieved good profitability for our shareholders. In 2016, our repositioning efforts will focus on the successful spin-off of Network Power and the potential sales of our Motors and Drives and Power Generation businesses, as well as increased activity in the evaluation and acquisition of key strategic assets."
