Summary
Emerson Electric Co. (EMR) filed an 8-K on December 20, 2001, providing an update on its "Underlying Orders" on a GAAP basis for the 13 months ending November 2001. This report indicates a significant slowdown across most of Emerson's business segments, particularly in the latter half of 2001. Total Emerson orders showed a negative trend, with the trailing three-month average declining notably. The Electronics and Telecom segment experienced the most severe contraction, while Industrial Automation and HVAC also faced persistent weakness. The report highlights specific headwinds within each segment, such as declining industrial goods markets, weak demand for HVAC products in North America and Europe, and the broad downturn in computing and telecom equipment. However, the Process Control segment showed some resilience, driven by strength in international oil, gas, and power industries, with solid new project awards. Despite the overall challenging environment, there were nascent signs of improvement in consumer appliance, tools, and storage demand.
Key Highlights
- 1Total Emerson underlying orders showed a declining trend over the 13 months, with significant contraction in the latter half of 2001.
- 2The Electronics and Telecom segment experienced the most severe order decline, reflecting weakness in computing and telecom markets.
- 3Industrial Automation and HVAC segments faced widespread and persistent order declines, impacted by North American and European market conditions.
- 4Appliance and Tools orders showed weakness in industrial-related products, but consumer demand showed recent signs of improvement.
- 5The Process Control segment demonstrated resilience, driven by international strength in oil, gas, and power industries, with solid new project awards.
- 6The filing provides a monthly breakdown of order changes, allowing investors to track segment performance and trends.