Summary
Emerson Electric Co. (EMR) filed an 8-K on December 20, 2007, providing an update on its underlying order trends for the three months ending November 2007. The company reported consistent double-digit growth in total orders, driven by favorable currency exchange rates which contributed approximately 7 percentage points to the growth. This indicates a strong demand environment for Emerson's products and services across its major business segments. The report highlights robust order growth in Process Management, Industrial Automation, and Network Power, largely attributed to global expansion in the energy sector, strength in specific automation businesses, and robust demand from data center computing and telecommunications. While Climate Technologies showed positive growth, Appliance and Tools experienced a slight weakness, consistent with the prior month. The company also announced upcoming investor events, including the Q1 2008 earnings release and conference call on February 5, 2008, and an Annual Investment Community Update on February 7, 2008.
Key Highlights
- 1Total Emerson underlying orders showed consistent double-digit growth (10% to 15%) for the three months ending November 2007.
- 2Favorable currency exchange rates contributed approximately 7 percentage points to the order growth.
- 3Process Management orders benefited significantly from global energy sector expansion and the weaker dollar.
- 4Industrial Automation orders remained strong, particularly in power generation and fluid automation.
- 5Network Power orders were robust, led by growth in data center computing and telecommunications markets.
- 6Climate Technologies experienced solid order growth, with U.S. residential air conditioning and Asian markets showing strength.
- 7Appliance and Tools orders were flat to slightly negative, with professional tools strength offset by weakness in residential storage and appliance components.