Summary
Emerson Electric Co. (EMR) filed an 8-K on March 25, 2004, to disclose recent order trends and upcoming investor events. The report indicates solid and steady growth across most of its business segments, with a notable positive impact from favorable currency exchange rates in February 2004, contributing approximately 5% to orders. Management expects this currency tailwind to lessen in subsequent periods as comparisons are made against periods with already weaker dollar rates. The company provided a three-month trailing average of underlying order growth, showing consistent double-digit percentage increases year-over-year for Emerson as a whole, generally ranging from 10% to 15%. Specific segment performance highlights include robust growth in Process Control driven by Asia, Europe, and large projects, and in Industrial Automation due to demand in industrial equipment and power generation. Electronics and Telecom also showed strength, particularly in the OEM and systems businesses, and within Asia. HVAC and Appliance and Tools segments also reported positive order trends.
Key Highlights
- 1Emerson Electric reported consistent double-digit year-over-year order growth (10-15%) across its business segments for the trailing three months ending February 2004.
- 2Favorable currency exchange rates provided an approximate 5% boost to February 2004 orders, though this benefit is expected to diminish due to year-over-year comparisons.
- 3Process Control orders show strength driven by growth in Asia and Europe, coupled with demand for systems, solutions, and oil and gas projects.
- 4Industrial Automation orders are benefiting from positive trends in industrial equipment, motors, controls, and power generation.
- 5Electronics and Telecommunications segment performance is strong, especially in OEM, systems, and Asian markets.
- 6The company announced that its second quarter 2004 results will be issued on May 4, 2004, followed by a conference call for investors.
- 7A replay of the Q2 2004 earnings conference call will be available on Emerson's Investor Relations website for three months.