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Emerson Rolls Out Appleton FELED & FNLED Linear Luminaries

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Emerson Electric Co. (EMR - Free Report) recently unveiled the Appleton ATX FNLED luminaire and upgraded Appleton ATX FELED luminaire, expanding its portfolio of LED linear luminaires. While the company has developed the new Appleton ATX FNLED non-metallic luminaire for use in the IECEx/ATEX Zone 2 and 22 hazardous areas, the upgraded version of the Appleton ATX FELED luminaire is designed particularly for the IECEx/ATEX Zone 1 and 21 hazardous areas. The expansion of the portfolio will allow the company to extend its energy efficient and reliable lighting solution offerings across industrial facilities.

Easy to install and maintain, the ATX FELED luminaire is suitable for use in the oil and exploration, wastewater treatment, petrochemical plant and in industries where flammable gases’ combustible concentrations exist. Notably, the upgraded version of the ATX FELED luminaire offers better LED performance, with an expanded voltage range. On the other hand, the ATX FNLED is designed for use in warehouses, beverage processing, pharmaceuticals, alternative energy and marinas. Notably, both these luminaries have higher energy efficiency, longer service life and require low maintenance costs compared to its standard lighting counterparts.

Equipped with a fiberglass reinforced polyester body, hinged polycarbonate lens and an elastomer gasket, Appleton FELED and FNLED linear luminaries offer an ideal choice for industries seeking solutions for ingress protection from moisture and dust.

Existing Business Scenario

Emerson is witnessing solid demand in hybrid and process end markets, as well as robust growth in global professional tools and air conditioning market in North America. For fiscal 2019 (ending September 2019), the company anticipates benefiting from steady growth in North America heating and cooling, global professional tools, and Latin American end markets.

Also, acquisitions have been preferred mode of business expansion for the company over time. For instance, it used $243 million for acquisitions (net of cash acquired) in the first half of fiscal 2019 (ended March 2019). For fiscal 2019, the company anticipates acquired assets to boost sales by 5%.

In the past six months, the Zacks Rank #3 (Hold) stock has returned 11.8%, outperforming the industry’s rise of 11.1%.

However, increasing costs remain a cause of concern for Emerson. Notably, in the fiscal second quarter (ended March 2019), the company's cost of sales was up 8.8% year over year. This apart, its policy of acquiring a large number of companies adds to integration risks.

Stocks to Consider

Some better-ranked stocks from the Zacks Industrial Products sector are Harsco Corporation , Flowserve Corporation (FLS - Free Report) and IDEX Corporation (IEX - Free Report) . While Harsco sports a Zacks Rank #1 (Strong Buy), Flowserve and IDEX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Harsco delivered average earnings surprise of 11.40% in the trailing four quarters.

Flowserve pulled off average positive earnings surprise of 0.49% in the trailing four quarters.

IDEX delivered average earnings surprise of 5.69% in the trailing four quarters.

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