8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Dec 17, 2009)

Filed December 17, 2009For Securities:EMR

Summary

This Form 8-K filing from Emerson Electric Co. (EMR) on December 17, 2009, provides an update on the company's order trends for the trailing three-month period ending November 2009. The report indicates a continued moderation in the rate of order decline, with total Emerson orders down 5% to 10% compared to the prior year. Notably, currency exchange rates, particularly the weakening U.S. dollar, had a significant positive impact on reported orders, contributing over 10 percentage points to the overall trend. The filing also offers segment-specific insights, highlighting sequential improvement in Industrial Automation and positive contributions from Climate Technologies, driven by growth in Asia. While Process Management orders remained relatively flat to down, the report attributes this to currency revaluation benefits. Network Power saw moderating declines due to growth in China. Investors should note the upcoming investor events, including the Q1 2010 earnings call and the Annual Investment Community Update, which will provide further details and outlook.

Key Highlights

  • 1Trailing three-month order decline for Emerson moderated to 5-10% compared to the prior year, an improvement from previous periods.
  • 2Currency exchange rates, driven by a weaker U.S. dollar, positively impacted reported orders by over 10 percentage points.
  • 3Industrial Automation segment showed continued sequential improvement in order trends.
  • 4Climate Technologies segment experienced order growth, particularly from Asia and temperature sensor businesses.
  • 5Process Management orders were flat to down 5%, with significant positive impact from currency revaluation (approx. 21 percentage points).
  • 6Network Power orders saw moderating declines due to growth in China and embedded power businesses, also benefiting from currency (approx. 7 percentage points).
  • 7Emerson announced upcoming investor events, including the Q1 2010 earnings call on February 2, 2010, and an Annual Investment Community Update on February 5, 2010.

Frequently Asked Questions

As of November 2009, Emerson Electric Co. reported that its trailing three-month order rate decline had moderated to 5% to 10% compared to the prior year. This indicates a gradual improvement in the rate of order decline.

Currency exchange rates, specifically the weakening U.S. dollar, had a significant positive impact on Emerson's reported orders. For the total company, currency positively impacted orders by over 10 percentage points. The Process Management segment saw a particularly strong positive impact of approximately 21 percentage points due to backlog revaluation.

Yes, the Industrial Automation segment continued to show sequential improvement in order trends. Climate Technologies also benefited from growth, particularly in Asia. The Process Management segment's underlying orders (excluding currency) remained stable, while Network Power saw moderating declines driven by growth in China. The Appliance and Tools segment showed improved trends due to easier prior-year comparisons and some consumer business growth.

Emerson announced that it will issue its first quarter 2010 results on Tuesday, February 2, 2010, followed by an investor conference call. Additionally, the company will host its Annual Investment Community Update in New York City on February 5, 2010, which will provide further insights and details.