What was the overall trend in Emerson's orders reported in this filing?

As of February 2009, Emerson's trailing three-month average order rate showed a decline of 20% to 25% compared to the same period in the prior year. This trend was largely consistent with the preceding months, indicating no immediate improvement in end-market conditions.

What are the primary reasons cited for the decline in orders?

The decline is primarily attributed to a significant step-down in residential, non-residential, and capital-related businesses. This is driven by persistently low consumer, financial, and business confidence levels, leading global customers to reduce inventory levels and business spending in anticipation of prolonged economic challenges.

Did currency exchange rates affect the order numbers?

Yes, currency exchange rates had a negative impact on order growth. For the overall company, this impact was approximately 4 percentage points. Some segments, like Process Management, experienced a more pronounced negative currency impact of about 6 percentage points.

When will investors get more information about Emerson's current business outlook and financial performance?

Emerson scheduled an investor update conference call for April 7, 2009, to discuss the business outlook. Additionally, the company planned to release its second quarter 2009 results on May 5, 2009, followed by another investor conference call.

EMR 8-K: Regulation FD — Mar 24, 2009

Summary

Emerson Electric Co. (EMR) filed an 8-K on March 24, 2009, providing an update on its order trends as of February 2009. The report indicates a continued challenging economic environment, with the company's trailing three-month average order rate for the period ending February 2009 showing a decline of 20% to 25% compared to the prior year. This downturn is attributed to widespread reductions in customer inventory levels and business spending, driven by low consumer, financial, and business confidence. Currency exchange rates also negatively impacted order growth by approximately 4 percentage points. Despite the broad-based weakness, some segments showed varied performance. Process Management orders declined, with the power market remaining strong while chemical and refining markets slowed. The report also highlighted upcoming investor events, including an update call on April 7, 2009, to discuss the business outlook and the release of second-quarter 2009 results on May 5, 2009. Management's focus remains on cash generation and executing restructuring programs.

Key Highlights

1Trailing three-month average order rate declined 20-25% year-over-year as of February 2009.
2Weakness is attributed to decreased customer confidence, inventory reduction, and lower business spending across most end-markets.
3Currency exchange rates had a negative impact of approximately 4 percentage points on overall order growth.
4Process Management segment showed mixed results, with a strong power market but slowing chemical and refining sectors.
5Upcoming investor update call scheduled for April 7, 2009, to discuss business outlook.
6Second quarter 2009 results to be announced on May 5, 2009, with a subsequent investor call.
7Company is prioritizing cash generation and executing restructuring programs.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Mar 24, 2009)

Summary

Key Highlights

Frequently Asked Questions