Summary
This 8-K filing from Emerson Electric Co. (EMR) dated May 22, 2007, provides an update on order growth trends and upcoming investor events. The company reported positive order growth for the three months ending April 2007, with total Emerson orders increasing by 10% year-over-year. This growth was notably supported by a weaker U.S. dollar, which contributed approximately 4 percentage points to the increase due to favorable currency exchange rates. Key business segments like Process Management and Industrial Automation showed strong double-digit growth, driven by global energy markets and specific business lines such as power generating alternators and electrical distribution. Network Power and Climate Technologies also experienced positive order growth, while Appliance and Tools showed more modest gains. The filing also reaffirms Emerson's previously issued fiscal year 2007 guidance for sales growth (9%-11%) and earnings per share ($2.50-$2.60) ahead of an investor conference presentation.
Key Highlights
- 1Total Emerson order growth for the three months ending April 2007 was 10% year-over-year.
- 2A weaker U.S. dollar positively impacted orders, contributing nearly 4 percentage points to growth.
- 3Process Management and Industrial Automation segments demonstrated strong double-digit order growth, fueled by global energy and industrial markets.
- 4Network Power and Climate Technologies segments showed positive order trends, with notable contributions from UPS and cooling systems, and a general improvement in climate tech.
- 5Appliance and Tools segment experienced modest growth (0-5%), with strength in tools offsetting weakness in appliances and storage.
- 6Emerson reaffirmed its fiscal year 2007 sales growth guidance of 9% to 11%.
- 7Emerson reaffirmed its fiscal year 2007 earnings per share guidance of $2.50 to $2.60.