Summary
Emerson Electric Co. (EMR) filed a Form 8-K on November 28, 2006, to disclose its underlying order growth trends for the trailing three-month periods ending August, September, and October 2006, on a GAAP basis. This filing provides investors with a forward-looking indicator of potential future sales performance across Emerson's key business segments. The disclosed order trends indicate a general moderation in growth rates throughout the period, particularly in October. While Process Management and Industrial Automation showed continued strength, Network Power and Appliance and Tools experienced slower growth. Notably, Climate Technologies saw a significant slowdown and even a decline in orders by October, primarily attributed to challenging year-over-year comparisons in the North American air-conditioning business. Overall Emerson order growth moderated to 5% for the three months ending October, with favorable currency exchange rates contributing approximately 1% to this figure.
Key Highlights
- 1Emerson Electric Co. reported underlying order growth trends for August, September, and October 2006.
- 2Total Emerson order growth moderated from 10-15% in August to 5% for the three months ending October 2006.
- 3Favorable currency exchange rates contributed approximately 1 percentage point to the October order growth.
- 4Process Management and Industrial Automation segments demonstrated continued strong order growth.
- 5Network Power order growth remained steady within the 5-10% range.
- 6Climate Technologies experienced a significant moderation, with orders declining in October due to tough prior-year comparisons in North American air conditioning.
- 7Appliance and Tools segment order growth remained modest, within the 0-5% range.