Summary
Emerson Electric Co. (EMR) filed this 8-K on June 25, 2007, to provide an update on its underlying order trends for the trailing three-month period ending May 2007. The report indicates a steady overall order growth of 10% for the total company during this period. Key growth drivers were observed in the Process Management and Network Power segments, which experienced double-digit increases, while Industrial Automation also showed strong performance, partly aided by favorable currency exchange rates. However, the Appliance and Tools segment saw flat orders, with declines in motors and appliance businesses offsetting growth in tools and storage. Investors should note the company's reliance on global energy markets for Process Management and the positive impact of a weaker dollar on Industrial Automation orders. Emerson also announced its upcoming third-quarter 2007 results release and investor conference call scheduled for August 7, 2007.
Key Highlights
- 1Total Emerson underlying orders showed a consistent 10% growth for the three months ending May 2007 compared to the prior year.
- 2Process Management segment experienced robust double-digit order growth (15-20% in May), primarily driven by global energy market spending.
- 3Network Power orders accelerated to a 10-15% growth range in May, boosted by strong performance in uninterruptible power supplies, precision cooling, and China power systems.
- 4Industrial Automation orders also maintained double-digit growth, benefiting from the power generating alternator and electronic drives businesses, as well as a weaker U.S. dollar.
- 5Climate Technologies continued to show strong order growth, fueled by international demand, particularly from Europe and Asia.
- 6Appliance and Tools orders were flat, with negative trends in motors and appliance businesses offsetting positive contributions from tools and storage.
- 7The company will release its third quarter 2007 results on August 7, 2007, with a subsequent investor conference call.