Summary
Emerson Electric Co. (EMR) filed an 8-K on May 1, 2007, to report its second quarter 2007 financial results and provide an update on order trends. The company highlighted positive order growth across most segments, with a total order increase for the trailing three-month period ending March 2007 in the range of 5% to 10% year-over-year. This growth was supported by favorable currency exchange rates, which contributed over 2 percentage points to the total increase. Key business segments like Process Management and Industrial Automation demonstrated robust double-digit and high-level order growth, respectively, driven by specific strengths within their portfolios and a weaker U.S. dollar. Network Power also saw increased order growth, led by uninterruptible power supply and precision cooling businesses. While Climate Technologies and Appliance and Tools segments showed more moderate growth, the overall trend indicates continued positive momentum for Emerson heading into the second half of its fiscal year.
Key Highlights
- 1Emerson Electric reported positive overall order growth for the trailing three months ending March 2007, ranging from 5% to 10% year-over-year.
- 2Favorable currency exchange rates contributed over 2 percentage points to the total order increase during the period.
- 3Process Management segment exhibited strong double-digit order growth, with strength in valve, measurement, and systems businesses.
- 4Industrial Automation also maintained high order growth levels, led by power generating alternators and electrical distribution businesses.
- 5Network Power experienced increased order growth, primarily driven by uninterruptible power supply (UPS) and precision cooling solutions.
- 6Climate Technologies orders trended positively, supported by strong performance in Europe and Asia.
- 7Appliance and Tools segment showed modest order growth (0% to 5%), with strength in tools offsetting softness in other areas.