What was the main purpose of this 8-K filing?

The primary purpose of this 8-K filing was to provide the company's press release announcing its second-quarter 2009 financial results and operational highlights, including order trends.

How did Emerson's orders perform in the most recent reported period?

For the trailing three months ending March 2009, Emerson's 'Underlying Orders' were down significantly, between 20% and 30% compared to the prior year. However, there was a sequential improvement from February to March, with March orders down 15% to 20% excluding currency impacts.

What factors are contributing to the decline in orders?

The company cited backlog liquidation, reductions in channel inventories, and reduced lead times across various markets as primary drivers for the order decline. These factors are causing orders to fall below actual end-market demand.

Are there any positive signs in the order trends?

Yes, Emerson noted a sequential improvement in underlying orders from February to March, suggesting that order rates are beginning to align more closely with real end-market demand. The Appliance and Tools segment also showed signs of stabilization, albeit at low demand levels.

EMR 8-K: Earnings & Results & Regulation FD

Summary

Emerson Electric Co. (EMR) filed a Form 8-K on May 5, 2009, primarily to furnish its second-quarter 2009 earnings press release. The filing highlights that the company's "Underlying Orders" for the trailing three months ending March 2009 were down significantly, ranging from a 20% to 30% decline year-over-year. This broad-based order weakness is attributed to backlog liquidation, inventory reductions in distribution channels, and shortened lead times, exacerbated by currency headwinds which negatively impacted orders by approximately 7%. Despite the challenging order environment, the company noted a sequential improvement from February to March, suggesting that order rates may be nearing "real end-market demand levels." Underlying orders in March, excluding currency impacts, were down 15% to 20%. The report provides segment-specific order trends, showing weakness across Industrial Automation, Network Power, and Climate Technologies, while Process Management experienced mixed results and Appliance and Tools showed signs of stabilization at low demand levels. Investors are directed to an upcoming conference call on May 5, 2009, for further discussion.

Key Highlights

1Emerson Electric reported significant year-over-year declines in its trailing three-month "Underlying Orders" for the period ending March 2009, ranging from -20% to -30%.
2Currency exchange rates had a negative impact of approximately 7% on orders during the trailing three-month period.
3The company attributes the order declines to backlog liquidation, channel inventory reductions, and reduced lead times, which it believes are causing orders to fall below real end-market demand.
4A sequential improvement in underlying orders was observed from February to March, with March orders (excluding currency) down 15% to 20%.
5Order trends varied by segment, with broad weakness in Industrial Automation, Network Power, and Climate Technologies, while Process Management saw mixed end-market performance and Appliance and Tools showed signs of stabilization.
6Emerson scheduled an investor conference call for May 5, 2009, to discuss its second-quarter 2009 results.

EMERSON ELECTRIC CO 8-K Report, Financial Results (May 5, 2009)

Summary

Key Highlights

Frequently Asked Questions