Summary
This Form 8-K filing from Emerson Electric Co. (EMR) on March 27, 2008, provides an update on the company's order trends for the three months ending February 2008. Overall, Emerson reported a solid 10% growth in underlying orders, driven primarily by strength in its Process Management, Industrial Automation, and Network Power segments. Favorable currency exchange rates contributed a notable 3-4 percentage points to this growth, highlighting the impact of a weaker dollar on international sales. The report also indicates a moderation in growth for the Climate Technologies segment, with softness in the US and Europe offsetting strong performance in Asia. The Appliance and Tools segment continues to experience negative order trends, despite some bright spots. Investors will also note the announcement of Emerson's second quarter 2008 earnings release and conference call scheduled for May 6, 2008, providing an important upcoming opportunity to assess the company's financial performance.
Key Highlights
- 1Emerson Electric reported a 10% underlying order growth for the trailing three months ending February 2008.
- 2Key growth drivers were Process Management (+15%), Industrial Automation (+10% to +15%), and Network Power (+15% to +20%).
- 3Favorable currency exchange rates contributed approximately 3-4 percentage points to the overall order growth.
- 4Climate Technologies experienced moderating growth, with weakness in the US and Europe offsetting strength in Asia.
- 5The Appliance and Tools segment continued to show negative order trends.
- 6Emerson announced its second quarter 2008 results will be released on May 6, 2008, with an investor conference call scheduled for the same day.
- 7The company provided specific February 2008 order growth figures and commentary for each business segment.