Summary
Emerson Electric Co. (EMR) filed an 8-K on November 23, 2004, to provide an update on its underlying order trends for the trailing three-month periods ending in August, September, and October 2004. The report indicates a consistent positive growth in total company orders, ranging from +5% to +15% year-over-year across these months, suggesting continued demand for its diverse product lines. Favorable currency exchange rates were noted as a contributing factor to the October order growth. While overall order trends remain positive, the filing highlights segment-specific performance variations. Process Management and Industrial Automation showed robust growth, driven by capital spending and industrial demand in key regions like North America and Asia. Network Power also demonstrated improvement, particularly in Asia and North America. Conversely, Climate Technologies experienced a slowdown, attributed to inventory adjustments in the U.S. residential air conditioning market. The Appliance and Tools segment showed mixed results, with strength in storage business but varied performance in other areas. Investors can also note Emerson's upcoming Annual Investment Community Update scheduled for January 27, 2005.
Key Highlights
- 1Emerson reported positive underlying order growth for the company as a whole, ranging from +5% to +15% year-over-year for the trailing three-month periods ending in August, September, and October 2004.
- 2Favorable currency exchange rates contributed approximately 2.5 to 3 percentage points to the +5% to +10% order growth observed in October 2004.
- 3Process Management and Industrial Automation segments demonstrated solid order growth, supported by capital spending and industrial demand in North America and Asia.
- 4Network Power orders improved, driven by strength in Asia, North America, and Latin America, despite tougher prior year comparisons.
- 5Climate Technologies orders were negatively impacted by inventory reductions in the U.S. residential air conditioning market and challenging prior year comparisons.
- 6Appliance and Tools segment orders were mixed, with strength noted in the storage business.
- 7Emerson announced its Annual Investment Community Update will be held on January 27, 2005, in New York City, with a webcast available on its website.