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.