Summary
Emerson Electric Co. (EMR) filed an 8-K on August 1, 2006, to report its third-quarter 2006 results and provide an update on its order trends. The company announced that its underlying order growth remained strong through June 2006, with an overall increase of 15-20% for the trailing three months ending June compared to the prior year. This acceleration in order growth reflects robust underlying business conditions, with favorable currency exchange rates contributing approximately 2 percentage points. Key segments showing notable order strength include Process Management, driven by global energy markets, and Industrial Automation, supported by a favorable global capital spending environment. Network Power also continued to experience high levels of order growth. The press release also highlighted specific drivers within Climate Technologies and Appliance and Tools segments. Emerson scheduled an investor conference call for August 1, 2006, to discuss these results in detail.
Key Highlights
- 1Emerson Electric Co. reported strong underlying order growth for the three months ending June 2006, with a total increase of 15-20% year-over-year.
- 2Favorable currency exchange rates positively impacted order growth by approximately 2 percentage points.
- 3Process Management orders showed sustained strength, largely driven by demand from global energy markets.
- 4Industrial Automation experienced robust order growth attributed to a favorable global capital spending environment.
- 5Network Power continued its trend of high-level order growth across its key business lines.
- 6Climate Technologies benefited from the transition to higher efficiency air conditioning units (13-SEER) and strong demand from hot weather in the U.S.
- 7Appliance and Tools segment demonstrated solid growth, particularly in tools, storage, disposers, and HVAC motors.