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.