Summary
Emerson Electric Co. (EMR) filed this 8-K on August 7, 2007, primarily to announce its third quarter 2007 results via a press release (Exhibit 99.1). While the full financial results are detailed in the press release, this filing also provides specific forward-looking data on "Emerson GAAP Underlying Orders" for the three months ending April, May, and June 2007. Investors can use this order data to gauge top-line trends and segment performance. The order data indicates a slowdown in overall growth towards the end of the reported period, with total Emerson orders at +5 to +10 percent for June 2007, down from +10 percent in previous months. While key segments like Process Management, Industrial Automation, and Network Power showed continued strength, the Appliance and Tools segment experienced softness, and Climate Technologies saw a deceleration. Currency exchange rates provided a modest tailwind to order growth.
Key Highlights
- 1Announcement of Q3 2007 results via press release filed as Exhibit 99.1.
- 2Provides a 3-month trailing average of "Emerson GAAP Underlying Orders" for April, May, and June 2007.
- 3Overall Emerson order growth was positive but showed a slight deceleration, ending June 2007 at 5-10% year-over-year.
- 4Process Management, Industrial Automation, and Network Power segments demonstrated continued positive order momentum.
- 5Appliance and Tools segment experienced softness, particularly affecting businesses serving big box retailers and residential construction.
- 6Climate Technologies order growth slowed due to tougher year-over-year comparisons.
- 7Favorable currency exchange rates contributed approximately 2 percentage points to order growth in June 2007.