Summary
Emerson Electric Co. (EMR) filed an 8-K on August 24, 2007, providing a summary of its underlying orders for the trailing three months ending July 2007. The report indicates positive overall order growth for Emerson, ranging from +5% to +10% in July, driven by robust performance in its capital goods and technology-focused segments. Favorable currency exchange rates provided a notable tailwind, contributing approximately 3 percentage points to this growth. While overall growth is positive, the report highlights segment-specific trends. Process Management and Industrial Automation demonstrated strong order growth, benefiting from global capital spending and a weaker dollar. Network Power saw significant acceleration in order growth to 20%. Conversely, Climate Technologies experienced a decline, primarily due to softness in North American housing markets, though this was partially offset by new business wins. Appliance and Tools also showed mixed results, with softness in consumer-related areas but strength in non-residential construction markets.
Key Highlights
- 1Total Emerson order growth for the three months ending July 2007 was between +5% and +10%.
- 2Favorable currency exchange rates contributed approximately 3 percentage points to order growth.
- 3Process Management orders grew to +15% in July, indicating strength across valve, systems, and measurement businesses.
- 4Industrial Automation maintained +10% order growth, boosted by global capital spending trends and a weaker dollar.
- 5Network Power orders accelerated significantly to +20% in July, driven by power systems and embedded power businesses.
- 6Climate Technologies experienced a decline in orders, largely attributed to the soft North American housing market.
- 7Appliance and Tools showed mixed trends, with consumer weakness offset by strength in non-residential construction.