8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Sep 25, 2006)

Filed September 25, 2006For Securities:EMR

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.

Frequently Asked Questions

The primary drivers of Emerson Electric's order growth were strong global capital spending, robust project bookings in specific markets (like North American power and Middle East gas for Process Management), and favorable currency exchange rates which contributed approximately 2 percentage points to the overall growth.

Yes, Network Power order growth moderated due to tougher year-over-year comparisons and a deceleration in North American telecommunications orders. Climate Technologies also saw moderated growth, especially in the domestic residential air-conditioning segment, due to seasonal factors and difficult comparisons.

Emerson Electric is scheduled to announce its fourth quarter and full fiscal year 2006 results on Tuesday, November 7, 2006, followed by an investor conference call at 4:30 p.m. Eastern Standard Time.

The presentation from the Prudential Financial Conference, scheduled for September 29, 2006, will be posted in the Investor Relations area of Emerson's website at www.gotoemerson.com/financial starting at 7:30 a.m. EDT on the day of the event. It will be available for approximately one week.