Summary
This 8-K filing from Emerson Electric Co. (EMR) on February 3, 2009, primarily announces the company's first-quarter 2009 results and provides an update on its order trends. The filing indicates a challenging economic environment, with total underlying orders declining significantly compared to the prior year, reflecting broad-based weakness across most of its business segments. Currency exchange rates also negatively impacted reported order growth. Despite the headwinds, Emerson provided forward-looking commentary regarding expected order rates for the next six months, anticipating a continued decline but at a more moderate pace. The company also outlined upcoming investor events where more detailed discussions on the Q1 2009 results and future outlook will occur. Investors should pay close attention to the company's ability to navigate the deteriorating global economic conditions and manage its order book.
Key Highlights
- 1Emerson Electric Co. reported its first-quarter 2009 results via a press release on February 3, 2009.
- 2The company experienced a significant decline in total underlying orders, ranging from -10% to -5% for the trailing three months ending December 2008, compared to the prior year.
- 3Currency exchange rates had a negative impact of approximately 6 percentage points on trailing three-month orders.
- 4All major business segments, including Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools, showed declining order trends.
- 5Underlying orders, excluding currency, are expected to be in the -5% to -10% range on average for the next six months.
- 6Emerson scheduled an investor conference call on February 3, 2009, to discuss Q1 2009 results and an Annual Investment Community Update for February 6, 2009.