Summary
This 8-K filing from Emerson Electric Co. (EMR) on August 25, 2009, provides an update on its "underlying orders" on a GAAP basis for the three months ending July 2009. The report indicates a stabilization in order rates, with total orders down 25% for the trailing three-month period compared to the prior year. While currency exchange rates had a minor negative impact, the company suggests that economic conditions are showing signs of forming a bottom. The filing breaks down order performance by segment, highlighting mixed results. Process Management and Industrial Automation continue to face significant headwinds due to reduced capital spending and weak demand. Network Power shows relative stability, with particular strength in its China business. Climate Technologies are stabilizing and are positively influenced by stimulus programs in Asia. However, the Appliance and Tools segment remains weak, reflecting low consumer confidence and challenging end-market conditions.
Key Highlights
- 1Total underlying orders for Emerson Electric Co. decreased by 25% on a trailing three-month average basis for the period ending July 2009.
- 2The company observes signs of stabilization in order rates, suggesting a potential economic bottom is forming.
- 3Process Management and Industrial Automation segments are experiencing significant order declines due to reduced capital expenditures and weak demand.
- 4Network Power segment shows relatively stable order trends, with the China business outperforming.
- 5Climate Technologies orders are stabilizing and benefiting from Asian stimulus programs, particularly in China.
- 6Appliance and Tools segment continues to be negatively impacted by weak consumer confidence and challenging market conditions.
- 7Currency exchange rates had a negative impact of approximately 1 percentage point on orders.