8-KOther Events

EMERSON ELECTRIC CO 8-K Report (Dec 22, 2003)

Filed December 22, 2003For Securities:EMR

Summary

Emerson Electric Co. (EMR) filed a Form 8-K on December 22, 2003, to provide an update on its order trends and announce upcoming investor events. The report highlights positive order growth across most of its segments for the trailing three-month period ending November 2003, with a particular strength in Electronics and Telecommunications, and HVAC. This growth indicates a favorable business environment and improving demand for Emerson's diverse product offerings. Overall, Emerson's total orders showed a solid increase, reflecting a healthy business momentum heading into early 2004. The company also provided insights into specific segment drivers, such as the positive impact of currency exchange rates and regional performance variations. Investors can anticipate further details on the company's financial performance and strategic outlook through upcoming investor events, including an annual investment community update and the release of first-quarter 2004 results.

Key Highlights

  • 1Emerson Electric Co. reported positive underlying order growth for the trailing three-month period ending November 2003, with total company orders increasing between +10% to +15%.
  • 2Significant order growth was observed in the Electronics and Telecommunications segment (+15% to +20%) and the HVAC segment (+15% to +20%).
  • 3Industrial Automation orders showed improvement, with growth ranging from +5% to +15%, driven by strength in industrial equipment, motors, and controls.
  • 4Process Control orders experienced growth (+0% to +10%) despite modest declines in the U.S., supported by strength in Asia and Europe.
  • 5Favorable currency exchange rates positively impacted November orders by approximately 4.5%.
  • 6The company announced its annual investment community update meeting scheduled for January 22, 2004, in New York, which will be webcast.
  • 7Emerson plans to release its first quarter 2004 results on February 3, 2004, accompanied by an investor conference call.

Frequently Asked Questions

As of November 2003, Emerson Electric reported positive underlying order growth across most segments. The total company orders showed a trailing three-month average increase of +10% to +15% compared to the prior year. Key growth areas included Electronics and Telecommunications, and HVAC, both seeing increases of +15% to +20%. Industrial Automation also showed improvement (+5% to +15%), while Process Control orders grew between 0% and +10%.

Order growth is being influenced by several factors, including favorable currency exchange rates, which positively impacted November orders by approximately 4.5%. Growth drivers within specific segments include improvements in data computing markets in the U.S. and Europe for Electronics and Telecommunications, strength in Asia and the U.S. for HVAC, and improved industrial equipment demand for Industrial Automation. Regional performance also varied, with strength in Asia and Europe for Process Control orders.

Emerson Electric has scheduled two key investor events. First, an annual investment community update meeting will be held on January 22, 2004, in New York, which will be webcast. Second, the company will release its first quarter 2004 results on February 3, 2004, followed by an investor conference call. Replays of the conference call will be available on the company's investor relations website.