Emerson Electric Co (EMR) has won an order to supply its power technology to one of the largest solar energy projects in the United States.
Emerson will provide power inverters for a 30-megawatt solar power plant in Webberville, Texas. Emerson’s power inverters convert DC power from solar arrays into AC power, which is placed directly on the national grid and is used by consumers. Located just outside Austin, the Webberville project is expected to be operational by 2011 end and will generate green energy to feed 5,000 homes.
With a global workforce of more than 140,000 employees and 265 manufacturing facilities, Emerson is well positioned backed by infrastructure, knowledge, and experience to deliver its technology and product solutions to customers around the world.
The company continues to invest in breakthrough technologies, expand its geographic presence and improve the cost structure of the business, both organically and inorganically.
We anticipate that emerging markets will continue to outperform mature markets and could represent a significant portion of the company’s total sales. Furthermore, emerging markets could recover faster compared to the U.S. and Europe.
The company’s operations are at multiple locations spread across the world, a majority of which are outside the United States and are therefore at increased risk of disrupted production causing delays in shipment.
Substantial sales abroad could be impaired by economic shocks. Results of operations may also be adversely affected by foreign currency fluctuations.
Emerson Electric Company is a diversified global manufacturing and technology company. It offers a wide range of products and services in the areas of process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies, and industrial automation.
We currently have a Neutral recommendation on Emerson Electric Company.