8-KMaterial AgreementsRegulation FDExhibits & Filings

EMERSON ELECTRIC CO 8-K Report, Material Agreement (Mar 28, 2006)

Filed March 28, 2006For Securities:EMR

Summary

Emerson Electric Co. (EMR) filed an 8-K on March 28, 2006, reporting on two key events. First, shareholders approved the Emerson Electric Co. 2006 Incentive Shares Plan at the annual meeting on February 7, 2006. This plan, a continuation of prior programs, authorizes 10,000,000 shares of common stock for key employee incentives, administered by the Compensation Committee. Second, the company provided a Regulation FD disclosure detailing its underlying order trends for the three months ending February 2006. Overall orders showed consistent growth of 10-15%, driven by strong performance across multiple segments including Process Management, Industrial Automation, Network Power, and Climate Technologies. While currency exchange rates had a minor negative impact, favorable market dynamics and Emerson's market positions were cited as key drivers for this robust order growth. The filing also announced the date for the Q2 2006 earnings release and investor call.

Key Highlights

  • 1Shareholder approval of the 2006 Incentive Shares Plan, authorizing 10 million shares for key employee incentives.
  • 2The 2006 Incentive Shares Plan is a continuation of previous plans, indicating ongoing commitment to employee motivation.
  • 3Consistent 10-15% underlying order growth reported for the trailing three months ending February 2006 across Emerson.
  • 4Strong order growth observed in key segments: Process Management, Industrial Automation, Network Power, and Climate Technologies.
  • 5Favorable market dynamics and Emerson's market leadership are identified as primary drivers of order growth.
  • 6A minor negative impact on orders was attributed to unfavorable currency exchange rates (approximately 2 percentage points).
  • 7Announcement of the Q2 2006 earnings release and investor conference call scheduled for May 2, 2006.

Frequently Asked Questions

The 2006 Incentive Shares Plan is designed to incentivize and reward key employees, particularly senior management, who are crucial for the company's growth. It allows for the issuance of company common stock as part of compensation packages.

Emerson Electric Co. experienced consistent and robust underlying order growth, showing a 10-15% increase for the trailing three months ending February 2006. This growth was broad-based across several of its key business segments.

Several segments showed strong order growth. Process Management orders strengthened due to activity in energy markets. Industrial Automation benefited from capital spending. Network Power saw continued high levels driven by computing and telecommunications markets. Climate Technologies also remained strong, partly due to new energy efficiency standards for air conditioners.

Emerson Electric Co. is scheduled to issue its second quarter 2006 results on Tuesday, May 2, 2006. A conference call for investors to discuss these results will be held on the same day.