Summary
Emerson Electric Co. (EMR) filed a Form 8-K on May 28, 2003, providing an update on its underlying order trends for the three months ending April 2003. The report indicates that total Emerson orders showed a modest increase of 0 to +5 percent on a trailing three-month average basis compared to the prior year. However, underlying trends, excluding currency, acquisitions, and divestitures, were slightly down, primarily due to continued weakness in North America. While certain segments like Process Control and Industrial Automation showed moderate strength globally, they were tempered by softness in North America. The Electronics and Telecommunications segment continued to experience weakening demand, attributed to cautious computer and telecommunications markets. Favorable currency exchange rates provided a positive impact of approximately 4 percent on April orders. Investors should note the mixed performance across segments and the ongoing impact of the North American market weakness.
Key Highlights
- 1Total Emerson orders showed a 0 to +5 percent increase on a trailing three-month average basis versus the prior year.
- 2Underlying order trends (excluding currency, acquisitions, and divestitures) were slightly down.
- 3North American market weakness continues to be a significant factor impacting order trends.
- 4Process Control and Industrial Automation segments showed global strength, but North American performance was weaker.
- 5Electronics and Telecommunications segment orders are continuing to weaken due to cautious market conditions.
- 6Favorable currency exchange rates positively impacted April orders by approximately 4 percent.