Regional demand divergence: Europe and China softness

“Europe is seeing continued strength in energy, power and sustainability markets as well as our MRO business, particularly in Western Europe.”

“Additionally, for total Emerson, we saw a weaker demand environment in China across most of our business segments.”

“Transportation and semiconductor markets remain weak, while aerospace and defense performed well, and we saw continued government spending and research.”

“The European market was softer than expected amid lingering EV demand concerns, and China remains sluggish across most Test & Measurement segments. Due to this, we are looking into second half of 2025 for recovery in this business.”

“In the Americas, broad-based healthy growth across Latin America was slightly offset by slower MRO in North America.”

“Robust performance in the Middle East, driven by strong project activity was offset by broad-based weakness in Asia.”

“I'd suggest stable, Andy, at this point.”

“Americas also performed well, up 4%, led by power, LNG, metals and mining and life sciences.”

“Europe was up 7% with sustained strength in LNG, sustainability and decarbonization and life sciences.”

“China was down 3% for the year as chemical and discrete were low amidst weak demand.”

“In terms of factory automation, automotive has a big element to that for us, both in China and in Germany.”

“We're also seeing nascent growth in China of export EPC business. These are Chinese homegrown EPCs that are now beginning to take their skills and capabilities around the world.”

“Having said that, there are other segments in China that are interesting, particularly around power generation in coal and nuclear, and we're benefiting from those investments.”

“China predominantly softness in both chemical. We don't see project activity, spend activity to give us confidence in demand in that segment.”

“First half growth was led by Asia and The Middle East and Africa, with robust investment in energy and LNG projects offsetting continued weakness in China, specifically bulk chemical.”

“We are planning for gradual improvement in China, aided by easier comps and investment momentum in power and marine.”

“As you can see, most of our gross impact is driven by the 125% reciprocal tariff on imports from China, while the Mexico impact is significantly mitigated as 80% of our supply into the US from Mexico qualifies for USMCA exemptions.”

“We're seeing continued flat activity in Europe for the year. Certainly, are industries such as automotive packaging, but certainly chemicals. In in places like Benelux in in Germany that are still very challenged.”

“And then our outlook on China has turned a little more bearish as we navigated another quarter. We now believe that we'll be down low single digits for the year.”

“North America, India, and The Middle East and Africa continue to show robust demand, while we are seeing ongoing softness in Europe and China.”

“Obviously, it's depending what happens there, obviously, you've seen the ECB cut rates. There is, for example, today in the UK that we talked about construction -- actually growth in construction this last month. So hopefully, it is starting to pick up, but our assumption really is that it doesn't pick up that quickly for the remainder of the year.”

“We anticipate demand in China will remain at a relatively low level for the above 10 ton excavator industry.”

“In the EAME, we anticipate that weak economic conditions in Europe will continue, somewhat offset by continued healthy construction demand in the Middle East.”

“Sales to users declined in the EAME, primarily due to weakness in Europe relating to residential construction and economic conditions.”

“Europe, as we indicated, has been a problem. It's been a problem. I think most of our competitors have made similar comments as well. It does seem to be a little bit on the bottom.”

“In EAME, we anticipate weak economic conditions in Europe will continue and a healthy level of construction activity in Africa and the Middle East.”

“In the EAME, weak economic conditions in Europe remain, while conditions are supportive of investment in Africa and the Middle East.”

“In Asia Pacific outside of China, economic conditions continue to be soft.”

“China has shown positive momentum in the 10-ton and above excavator industry, but from a very low level of activity.”

“Construction activity in Latin America is expected to decline moderately throughout the year.”

“Sales to users increased in EAME primarily due to growth in Africa and the Middle East. However, overall growth in EAME was below our expectations due to weakness in Europe.”

“China has shown positive momentum to start the year, and we expect full year growth in the -- in the above 10-ton excavator industry, but from a very low level of activity.”

“In EAME, we expect growth for the year, driven by healthy construction activity in Africa and the Middle East and improving economic conditions in Europe.”

“We saw a decline in Asia Pacific, which was below our expectations, resulting from softness in a few key subregions.”

“China has shown positive momentum to start the year, and we expect full year growth in the above 10-ton excavator industry but from a very low level of activity.”

“When you look at the piece that's sort of local for local, if you will, it's about 1% so flattish and pretty similar to what other multinational, maybe even a little better than what a lot of other multinationals are seeing in China.”

“China for us is about 10% of our revenue. We had a good first half. We're up about 13% in the first half and part of that is electronics.”

“The current forecast is it does turn positive from minus 0.3% to plus 0.5%, I think is what it was in 2025. Europe, we have to watch. We've got a pretty good presence in Europe as well. It's a very big turnaround in Europe from down 60 basis points to up 130 basis points next year.”

“Geographically, our growth was led by China, up high-single-digits, driven by our electronics business where we continue to gain share and saw modest front-loading from an anticipated change in tariffs.”

“The U.S. was up low-single digits despite the challenging macro backdrop with growth in Aerospace and general industrial. And EMEA was down low-single digits due to the continued weak environment, including a high single-digit decline in auto builds.”

“We do expect that our business in China will be slower in '25 than it was in 2024, probably in the low single-digit range is what we expect for revenue for 3M in China.”

“The US was up low single digits despite the challenging macro backdrop with continued high demand for cable accessories and strength in aerospace, partially offset by weakness in auto.”

“Our auto OEM business was down mid-single digits reflecting continued weakness in auto builds particularly in Europe and the US, which were each down high single digits year on year.”

“Europe was down low single digits due to the continued weak environment, including a high single-digit decline in auto builds.”

“China was up mid-single digits with strength in the industrial business and electronic bonding solutions, driven by share gains with key accounts and increased orders ahead of tariff actions.”

“By geography, our growth was led by China, up mid-single digits with strength in industrial adhesives, films and electronics bonding solutions driven by strong commercial execution that led to share gains.”

“our auto OEM business was down low single digits, reflecting continued weakness in auto builds, particularly in Europe and the U.S., which were each down low single digits year-on-year.”

“Auto aftermarket continued to see challenges down mid-single digits amid industry pressure with collision repair claim rates down double digits year-to-date.”

“Finally, industry sales in Asia are projected to be down slightly, as foundational technology adoption and improving ag fundamentals in India provide moderate demand tailwinds.”

“2024 was a tough year for the region. We really saw a perfect storm of factors: depressed commodity prices, lower yields, regional conflicts, and frustration with ag policy that ultimately drove a retail sales decline much greater than normal for a market that is traditionally less volatile than North and South America.”

“As we look at the impact on equipment sales in the coming year, it's important to highlight the varying dynamics across each of our primary regions.”

“In Europe, the industry is projected to be down between 5% and 10%. Farm fundamentals in the region continue to deteriorate.”