Summary
Emerson Electric Co. (EMR) filed an 8-K on November 25, 2003, providing an update on its underlying orders through October 2003. The report indicates a positive trend in order growth, with total Emerson orders showing an increase of 10% to 15% for the trailing three months ending October 2003, a notable improvement from the 0% to 5% growth in the prior three-month period. This acceleration in orders is attributed to robust performance across several key segments, including Process Control, Industrial Automation, Electronics and Telecommunications, and HVAC. Geographically, the report highlights strong growth in Asia and Europe, with particular strength in Industrial Automation demand in Europe outpacing the United States. Favorable currency exchange rates also provided a modest tailwind, positively impacting October orders by approximately 3%. While most segments showed significant improvement, the Appliance and Tools segment experienced mixed results, reflecting the impact of exiting a specific product line alongside some consumer business improvements.
Key Highlights
- 1Total Emerson orders showed significant acceleration, growing 10% to 15% on a trailing three-month average basis through October 2003.
- 2Order growth improved from 0% to 5% in the prior period to 10% to 15% in the latest reported period.
- 3Process Control orders saw a positive shift, with October orders up 10% year-over-year, driven by growth in Asia and Europe.
- 4Industrial Automation orders were strong, up 5% to 10% for the trailing three months, with Europe leading demand over the U.S.
- 5Electronics and Telecommunications orders demonstrated continued strength, up 15% to 20%, fueled by data computing markets in the U.S. and Europe, and Asian telecommunications.
- 6HVAC orders improved significantly, with October orders up 15% to 20% due to strong growth in Asia and its solutions business.
- 7Favorable currency exchange rates positively impacted October orders by approximately 3%.