Summary
Emerson Electric Co. (EMR) filed an 8-K on February 27, 2006, providing an update on its underlying orders for the three-month period ending January 2006. The report indicates robust order growth across the company, with a trailing three-month average increase of 10% to 15% compared to the prior year. This positive trend is driven by strong performance in key segments like Network Power and Process Management, which experienced double-digit growth. The company highlighted that unfavorable currency exchange rates impacted order growth by approximately 3 percentage points, suggesting underlying business momentum is even stronger.
Key Highlights
- 1Emerson Electric Co. reported a positive underlying orders trend, with a trailing three-month average growth of 10% to 15% for the period ending January 2006.
- 2Three of Emerson's five business segments achieved double-digit order growth in the three months ending January 2006.
- 3Unfavorable currency exchange rates reduced reported order growth by approximately 3 percentage points.
- 4Process Management segment orders strengthened due to success in large projects and growth in valve, measurement, and systems businesses.
- 5Industrial Automation orders benefited from continued capital spending and industrial demand in North America, particularly from the power generating alternator business.
- 6Network Power orders remained high, driven by strong growth in power systems and embedded power businesses, with significant demand from the United States and Asia.
- 7Climate Technologies orders remained strong, partly due to the transition to 13 SEER for residential air-conditioning units.