8-KRegulation FD

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

Filed September 24, 2009For Securities:EMR

Summary

This Emerson Electric Co. (EMR) 8-K filing from September 24, 2009, provides an update on the company's underlying order trends for the three months ending August 2009. The report indicates a stabilization in order rates, with the total company's trailing three-month average down 20-25% compared to the prior year. While global end markets for capital goods remain weak, specific segments like Climate Technologies in Asia and certain Network Power markets are showing signs of improvement. Investors should note the slight positive impact from currency exchange rates and the continued reliance on stimulus programs in China for growth in Climate Technologies. The company reiterates its sales forecast and provides dates for upcoming investor events, including the Q4 and fiscal year 2009 earnings release and conference call on November 3, 2009.

Key Highlights

  • 1Emerson's trailing three-month order rate showed signs of stabilization, down 20-25% year-over-year for the total company as of August 2009.
  • 2Currency exchange rates had a negative impact of approximately 1 percentage point on August orders.
  • 3Underlying order trends in August were slightly better than June and July, suggesting overall market weakness continues.
  • 4Process Management orders were impacted by reduced capital spending and MRO demand.
  • 5Industrial Automation experienced broad order weakness, particularly in power generation.
  • 6Network Power saw stabilization in data-center and telecommunications markets.
  • 7Climate Technologies experienced slightly positive order rates in August, driven by Asia and China's stimulus programs.

Frequently Asked Questions

Emerson's trailing three-month average order rate showed signs of stabilization but remained down by 20-25% compared to the prior year as of August 2009. While overall market weakness persists, the trend was slightly better than in the preceding months of June and July.

Network Power is seeing stabilization in its data-center computing and telecommunications end markets. Climate Technologies experienced slightly positive order rates in August, primarily driven by strength in Asia, particularly China, benefiting from stimulus programs.

The company stated that the order trends from recent months and current economic conditions continue to support the sales forecast previously presented during their third quarter conference call on August 4, 2009.

Emerson is scheduled to issue its fourth quarter and fiscal year 2009 results on Tuesday, November 3, 2009. A conference call to discuss these results will be held on the same day at 3:00 p.m. Eastern Standard Time.