Summary
This Form 8-K filing by Emerson Electric Co. (EMR) on September 25, 2006, provides an update on the company's order growth trends for the three months ending August 2006. The report indicates a strong overall performance, with total Emerson orders growing between 15-20% year-over-year for the trailing three-month period ending August. This growth is supported by favorable global capital spending and currency exchange rates, which contributed approximately 2 percentage points. Key business segments such as Process Management and Industrial Automation showed robust order growth, driven by strong project bookings and a favorable global capital spending environment, respectively. While Network Power and Climate Technologies also experienced positive growth, there were signs of moderation in certain sub-segments due to tougher year-over-year comparisons and seasonal factors. The filing also outlines upcoming investor events, including a presentation at the Prudential Financial Conference and the release of Q4 and full fiscal year 2006 results in November.
Key Highlights
- 1Total Emerson orders showed a strong trailing 3-month average growth of 15-20% year-over-year through August 2006.
- 2Favorable currency exchange rates contributed approximately 2% to the reported order growth.
- 3Process Management orders remained strong, with significant project bookings in North American power and Middle East gas markets.
- 4Industrial Automation orders benefited from a strong global capital spending environment and broad-based strength across its businesses.
- 5Network Power order growth moderated slightly due to tougher comparisons and a slowdown in North American telecommunications orders.
- 6Climate Technologies order growth also moderated, particularly in the domestic residential air-conditioning business, due to seasonal factors and challenging year-over-year comparisons.
- 7Emerson announced upcoming investor events, including a presentation at the Prudential Financial Conference on September 29, 2006, and the release of Q4/FY2006 results on November 7, 2006.