8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Aug 24, 2007)

Filed August 24, 2007For Securities:EMR

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.

Frequently Asked Questions

This 8-K filing is primarily a Regulation FD disclosure, intended to provide investors with timely information regarding Emerson Electric Co.'s underlying order trends for its key business segments for the three-month period ending July 2007.

Network Power and Process Management are demonstrating the strongest order growth. Network Power's orders accelerated to 20% in July, while Process Management saw a 15% increase, indicating healthy demand in these areas.

The primary headwinds identified are softness in consumer and residential-related businesses, particularly within Climate Technologies due to the North American housing market, and also impacting the Appliance and Tools segment.

The report explicitly states that favorable currency exchange rates contributed approximately 3 percentage points to the total Emerson order growth for the period, highlighting its material impact.