SANM Sanmina Corporation

Emerson Electric Co (EMR) is entering a partnership with Sanmina-SCI (SANM) to build solar power inverters at Sanmina-SCI’s Ottawa, Canada, manufacturing facility.

The Emerson grid-tie inverters to be built by Sanmina-SCI are designed for utility and large-scale commercial purposes. Production of the inverters will begin in 2011 and it may be possible to supply to solar energy projects throughout North and South America.

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, emrging 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 exposed to 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.

 
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