8-KOther Events

EMERSON ELECTRIC CO 8-K Report (May 6, 2003)

Filed May 6, 2003For Securities:EMR

Summary

This 8-K filing from Emerson Electric Co. (EMR) on May 6, 2003, primarily reports on the company's "underlying orders" performance for the three months ending March 2003, as disclosed in a related press release. Overall, Emerson experienced modest order growth in the low single digits for the trailing three-month period. However, underlying trends, when excluding favorable currency impacts, were slightly negative. This weakness is attributed to a challenging macroeconomic environment, including the ongoing war and reduced capital spending, particularly in North America and Europe. Certain segments, like Electronics and Telecommunications, and Appliance and Tools, showed particular softness, while HVAC orders remained strong due to North American demand and Asian strength. Investors should note the commentary on currency fluctuations and the company's use of non-GAAP financial measures for performance evaluation.

Key Highlights

  • 1Emerson Electric reported a trailing 3-month average order growth of 0% to +5% as of March 2003.
  • 2Favorable currency exchange rates positively impacted March orders by approximately 2% to 4% overall.
  • 3Underlying order trends (excluding currency, acquisitions, divestitures) were slightly down due to weak North American and European markets.
  • 4The war and lower capital spending levels are cited as reasons for the weak underlying trends.
  • 5Process Control and Industrial Automation segments saw significant positive currency impact (6%-8%).
  • 6Electronics and Telecommunications orders continued to weaken due to cautious markets.
  • 7HVAC orders showed strength, benefiting from the North American market and Asia.
  • 8The filing includes a press release detailing fiscal 2003 second-quarter earnings and non-GAAP financial measures.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose Emerson Electric's "underlying orders" performance for the three-month period ending March 2003, as reported in an accompanying press release. It also informs investors about the company's fiscal 2003 second-quarter earnings.

The key drivers for March 2003 orders included favorable currency exchange rates, which added approximately 2% to 4% to overall orders. However, underlying trends, excluding currency and other factors, were slightly negative due to weak market conditions in North America and Europe.

Segments showing weakness included Electronics and Telecommunications, impacted by cautious computer and telecom markets, and Appliance and Tools, reflecting softness in industrial and consumer markets. HVAC orders showed strength, benefiting from a solid North American market and order growth in Asia.

Yes, the filing and the accompanying press release contain non-GAAP financial measures. Emerson believes these measures are useful for evaluating performance but advises that they should be considered supplemental and not a substitute for GAAP-based financial information. Investors should also note that these non-GAAP measures may differ from those presented by other companies.