Summary
Emerson Electric Co. (EMR) filed an 8-K on February 6, 2007, primarily to report its first quarter 2007 results and provide updates on order trends. The company reported overall positive order growth, with a 5% to 10% increase in the trailing three months ending December 2006. Favorable currency exchange rates, particularly the weaker dollar, contributed significantly to this growth, accounting for nearly 4 percentage points of the increase. The report highlights strong performance in Process Management and Industrial Automation, both experiencing double-digit order growth. Network Power also showed robust order increases. However, Climate Technologies faced negative order trends due to challenging comparisons in the North American residential air-conditioning market, though international segments showed strength. Appliance and Tools experienced moderate growth. Emerson also announced upcoming investor events, including an earnings conference call and an annual investment community update.
Key Highlights
- 1Emerson Electric reported a 5% to 10% increase in overall orders for the trailing three months ending December 2006.
- 2Favorable currency exchange rates contributed approximately 4 percentage points to the overall order growth.
- 3Process Management and Industrial Automation segments demonstrated strong, double-digit order growth globally.
- 4Network Power segment also exhibited robust order growth, driven by UPS, precision cooling, and China power systems.
- 5Climate Technologies experienced negative order trends in North America due to tough comparisons in the residential air-conditioning market, but saw strong growth in Europe and Asia.
- 6Appliance and Tools segment showed moderate growth, with mixed performance across its sub-businesses.
- 7The company scheduled an investor conference call for February 6, 2007, to discuss Q1 2007 results and an Annual Investment Community Update for February 9, 2007.