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.