What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to provide investors with an update on Emerson Electric's "Underlying Orders" performance on a rolling three-month average basis, comparing it to the prior year, as required by Regulation FD.

Which business segments are performing the strongest based on this order data?

Based on the data provided for the trailing three months ending April 2006, Network Power and Process Management appear to be the strongest performing segments, with Network Power consistently showing growth exceeding 20% and Process Management also demonstrating significant strength.

How did currency fluctuations affect Emerson's order growth?

Unfavorable currency exchange rates had a moderate negative impact, reducing overall order growth by approximately 2 percentage points during the reported periods.

What does the order growth trend indicate about Emerson's business environment in early 2006?

The consistent double-digit order growth across most segments suggests a generally favorable economic and end-market environment for Emerson Electric's diverse business operations during the first four months of 2006, driven by capital spending and specific industry demands.

EMR 8-K: Regulation FD — May 23, 2006

Summary

This 8-K filing by Emerson Electric Co. (EMR) on May 23, 2006, provides an update on the company's "Underlying Orders" performance for the trailing three-month periods ending February, March, and April 2006, presented as a percentage change versus the prior year. The data indicates consistent double-digit order growth for Emerson as a whole, with a "Total Emerson" increase of +10% to +15% for all three periods. This sustained growth suggests favorable end-market dynamics for the majority of the company's business segments during this time. Key business segments demonstrating robust performance include Process Management and Network Power, which consistently reported significant order growth, often exceeding 20% for Network Power. Industrial Automation also showed strength, driven by global capital spending. While Climate Technologies and Appliance and Tools segments experienced more moderate growth, they still contributed positively. Management noted that unfavorable currency exchange rates had a minor impact, reducing orders by approximately 2 percentage points.

Key Highlights

1Emerson Electric Co. reported consistent double-digit order growth for the trailing three months ending April 2006, with Total Emerson orders up 10% to 15% year-over-year.
2The Process Management segment exhibited strong order growth, particularly in the United States, Asia, and Latin America, despite a slight deceleration in April due to project booking timing.
3Network Power continued to show robust growth (over 20%) in its orders, driven by demand in power systems and embedded power businesses, even facing tougher prior-year comparisons.
4Industrial Automation orders remained strong, benefiting from a favorable global capital spending environment, with leadership from power generating alternator and electrical distribution businesses.
5Climate Technologies showed solid order growth, aided by easier comparisons and strength in Europe, domestic refrigeration, and solutions.
6Appliance and Tools experienced modest growth, led by increases in tools, storage, and motor businesses.
7Unfavorable currency exchange rates had a negative impact of approximately 2 percentage points on order growth.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (May 23, 2006)

Summary

Key Highlights

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