Summary
Emerson Electric Co. (EMR) filed an 8-K on September 23, 2005, providing an update on its order trends for the three months ending August 2005. The filing indicates a positive and accelerating order growth trajectory for the company overall, with total Emerson orders showing a healthy increase of 10-15% in August 2005, up from 5% in July and 5-10% in June. This growth is broad-based across most segments, signaling improving industrial demand and a recovery in key markets. Key segments like Process Management and Industrial Automation demonstrated robust growth driven by strong project activity in oil & gas, power markets, and commercial sectors. The Climate Technologies segment showed a significant rebound, recovering from earlier negative growth due to strong residential air conditioning demand. Investors should note the company's positive outlook conveyed through these order trends ahead of their fourth quarter and fiscal year 2005 earnings release, scheduled for November 1, 2005.
Key Highlights
- 1Total Emerson orders showed accelerating growth, reaching 10-15% in August 2005.
- 2Process Management orders remained strong globally, driven by project activity in oil & gas and power.
- 3Industrial Automation orders reflected solid demand in commercial markets, with balanced growth across businesses.
- 4Climate Technologies segment orders rebounded significantly, primarily due to US residential air conditioning demand.
- 5Four out of five business segments experienced order increases from July to August.
- 6Currency exchange rates had a negligible impact on order growth rates.
- 7Emerson will report Q4 and FY2005 results on November 1, 2005, with a conference call.