Summary
Emerson Electric Co. (EMR) filed an 8-K on February 25, 2004, to provide an update on its underlying order trends for the three months ending January 2004. The report indicates consistent and positive order growth across its major business segments, with total underlying orders for Emerson showing a 10% to 15% increase year-over-year for the trailing three-month average through January 2004. Key drivers for this growth include favorable currency exchange rates, which positively impacted January orders by approximately 5.5%, and a slight increase in underlying orders excluding currency. The company highlighted strength in its Process Control and Industrial Automation segments, particularly driven by growth in Asia and Europe, as well as improvements in the United States for HVAC and Electronics and Telecommunications segments. While the Appliance and Tools segment experienced a slowdown, its underlying trend excluding currency still showed improvement.
Key Highlights
- 1Total Emerson underlying orders showed a consistent 10% to 15% year-over-year increase for the trailing 3-month average ending January 2004.
- 2Favorable currency exchange rates positively impacted January 2004 orders by approximately 5.5%.
- 3Underlying orders, excluding currency, showed a slight increase compared to the prior month's average in January 2004.
- 4Process Control segment experienced continued growth in Asia and Europe, with strong performance in systems and solutions.
- 5Industrial Automation orders benefited from positive trends in industrial equipment, motors, controls, and power generation.
- 6Electronics and Telecommunications segment saw strength driven by improvements in the OEM and systems businesses.
- 7HVAC orders reflected strength in both the U.S. market and Asia, despite a slight slowdown in the overall segment trend for January.