Summary
Emerson Electric Co. (EMR) filed an 8-K on November 7, 2006, to announce its fourth quarter and fiscal year 2006 results. The filing includes a press release with detailed financial information and a summary of underlying order trends. While the press release contains non-GAAP financial measures, management believes they provide useful insights for evaluating the company's performance. The company reported moderating order growth for the trailing three months ending September 2006, with overall growth at 5-10%. This was influenced by a softening in the Climate Technologies segment, particularly in domestic residential air-conditioning, although European markets showed solid growth. Favorable currency exchange rates provided a modest boost to order growth.
Key Highlights
- 1Emerson Electric Co. released its fourth quarter and fiscal year 2006 results via press release on November 7, 2006.
- 2The filing includes a press release (Exhibit 99.1) detailing the company's financial performance.
- 3The company noted a moderation in overall order growth to 5-10% for the three months ending September 2006.
- 4Climate Technologies experienced a softening, especially in the domestic residential air-conditioning market.
- 5Process Management and Industrial Automation segments showed continued strong order growth, driven by favorable end-market conditions and global capital spending.
- 6Network Power's growth moderated, partly due to capital spending delays in the North American telecom sector.
- 7Emerson management will discuss these results during an investor conference call on November 7, 2006, and will present at the Robert W. Baird Industrial Conference on November 8, 2006.