Yahoo Finance Emerson (EMR) Wins Contract for Biomass-Fueled Plant in UK
Emerson Electric Co. EMR won a contract with EPH Lynemouth Power, which entails conversion of the 44-year-old coal-fired Lynemouth Power Station to a new biomass-fueled power plant. The move reflects Emerson’s commitment toward innovation-based strategy.
Emerson’s stock is currently performing better than most of its peers. Over the past three months, shares of this Zacks Rank #3 (Hold) stock recorded a return of 14.1% – outperforming the 5.4% return generated by the Zacks categorized Machinery-Electrical industry.
Coming back to the contract, Emerson will be the main automation contractor and main electrical contractor as well. Moreover, it shall be responsible for supporting the completion of the project on time and within budget. This project is in sync with Europe’s policy of curbing greenhouse gas emissions, while boosting renewable energy and energy efficiency.
Post completion (which is scheduled for late 2017), the plant will supply the national grid with up to 390 megawatts of low-carbon electricity and will be fueled by roughly 1.4 million tons of wood waste per year.
Emerson offers a single integrated automation platform for all applications – turbine, boiler, fuel handling and balance-of-plant processes, as well as electrical systems, distinguishing the company from its peers. Its project management expertise was also a crucial factor that resulted in its selection for the project. Emerson’s full-scope project execution will assist in streamlining workflow, reducing risks and trimming costs for the project.
Per Emerson, the demand for biomass-fueled power continues to chart an upward trajectory, helped by utilities which are diversifying their portfolio to meet evolving environmental mandates.
Overall, Emerson is poised to grow on the back of bold restructuring moves, acquisitions and greater innovation. However, weakness prevailing within the oil & gas markets, stiff industry rivalry and increasing restructuring expenses remain major causes of concern.
Key Picks
Better-ranked stocks in the broader sector include ABB Ltd. ABB, Applied Industrial Technologies, Inc. AIT and Donaldson Company, Inc. DCI.
ABB Ltd., sporting a Zacks Rank #1 (Strong Buy), has generated a positive average earnings surprise of 23.5% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies currently carries a Zacks Rank #2 (Buy). It posted an average positive earnings surprise of 4.93%, over the last four quarters.
Donaldson Company manufactures and sells filtration systems and replacement parts worldwide. The Zacks Rank #2 company managed to beat earnings estimates twice over the trailing four quarters. In the last reported quarter, it surprised estimates by 8.6%.
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