Summary
Emerson Electric Co. (EMR) filed an 8-K on November 4, 2008, to report its fourth quarter and fiscal year 2008 results. The filing primarily serves as a vehicle to furnish a press release detailing these results, which includes both GAAP and non-GAAP financial measures. A key takeaway from the provided data is the order growth trend through September 2008, which shows a deceleration across most segments, particularly influenced by a strengthening U.S. dollar. While underlying order trends may remain robust in certain areas like Process Management, the reported numbers are significantly impacted by currency revaluation. The company also provided an update on upcoming investor events, including a conference call to discuss the full fiscal year and fourth-quarter results, and participation in the Baird 2008 Industrial Conference. Investors should note the commentary regarding the negative impact of currency exchange rates on backlog revaluation and order growth, a factor that is likely to be a significant point of discussion during management's presentations.
Key Highlights
- 1Emerson Electric Co. announced its fourth quarter and fiscal year 2008 results via an 8-K filing on November 4, 2008, furnishing a press release with the details.
- 2The filing includes both GAAP and non-GAAP financial measures, with a caveat that non-GAAP measures should be considered supplemental.
- 3Order growth for the trailing three months ending September 2008 showed a slowdown across most segments, with total Emerson order growth at 0% to +5%.
- 4A strengthening U.S. dollar had a significant negative impact on order growth and backlog revaluation, reducing reported orders by approximately 3 percentage points in the September period.
- 5The Process Management segment experienced a substantial negative backlog revaluation due to currency exchange rate impacts, particularly the Euro to U.S. dollar rate.
- 6Despite currency headwinds, underlying order trends in Process Management were noted as strong, driven by the energy sector.
- 7Appliance and Tools segment orders continued to be negatively impacted by weakness in consumer spending and residential investment.