Summary
This Form 8-K filing by Emerson Electric Co. (EMR) on February 28, 2008, provides an update on the company's order trends for the three months ending January 2008. Overall, Emerson reported solid order growth, with a trailing three-month average increase of 10% to 15% compared to the prior year. This growth was driven by strong performance in key segments, particularly Network Power and Process Management, benefiting from robust global energy markets and strong data-center computing/telecommunication demand respectively. While most segments demonstrated positive momentum, the Appliance and Tools segment continued to face headwinds due to weakness in consumer spending and residential investment. The report also highlights the positive impact of favorable currency exchange rates and a weaker dollar, contributing approximately 3 to 4 percentage points to the overall order increase.
Key Highlights
- 1Emerson Electric Co. reported solid overall order growth of 10-15% for the trailing three months ending January 2008.
- 2Network Power was a key growth driver, with orders up 15-20% in January 2008, primarily due to strength in data-center computing and telecommunications.
- 3Process Management also showed strong order growth (10-15%) driven by robust global energy markets.
- 4Industrial Automation experienced positive order growth (10-15%), supported by power transmission and fluid automation businesses.
- 5Climate Technologies reported positive order trends (5-10% in Jan '08), led by Asia and controls businesses.
- 6The Appliance and Tools segment continued to be negatively impacted by weak consumer spending and residential investment, showing flat to negative order growth (-5% to 0%).
- 7Favorable currency exchange rates and a weaker dollar contributed approximately 3-4 percentage points to the order growth.