Summary
This 8-K filing from Emerson Electric Co. (EMR) on June 25, 2001, provides a crucial update on the company's order trends for the 13 months ending May 2001, under Regulation FD. The filing indicates a significant slowdown and declining order trends across most of Emerson's segments by May 2001, particularly in Industrial Automation, Electronics and Telecom, and Appliance and Tools. This downturn contrasts with stronger order growth observed in the earlier part of the reported period. While Process Control orders show resilience and growth, driven by specific solutions like PlantWeb, the overall performance for Total Emerson points to a negative 5-10% change in orders for May 2001. Investors should note the specific segment challenges, such as the impact of economic slowdowns, currency fluctuations, and weakened demand in key markets like computing, telecom, and industrial goods. The filing also preemptively informs investors about the upcoming third fiscal quarter earnings release and conference call scheduled for August 7, 2001.
Key Highlights
- 1Emerson Electric Co. filed an 8-K on June 25, 2001, disclosing order trends for the 13 months ending May 2001.
- 2Overall order trends for Emerson turned negative by May 2001, with a reported change of -5% to -10% compared to the prior year.
- 3Industrial Automation and Appliance and Tools segments experienced continued softness and declining orders.
- 4Electronics and Telecom orders showed a significant deterioration, moving from strong growth to a decline of over 20% by May 2001, reflecting weakness in computing and telecom markets.
- 5Process Control orders remained a bright spot, showing growth due to the success of PlantWeb and strong demand for control and measurement products.
- 6HVAC orders experienced broad weakness in specific markets and a cool U.S. spring, though Asia demand remained strong.
- 7The company announced its third fiscal quarter results will be released on August 7, 2001, with an accompanying investor conference call.