Summary
Emerson Electric Co. (EMR) filed an 8-K on February 2, 2010, to report on its first-quarter 2010 results and provide an update on order trends. The company highlighted a sequential improvement in order trends across all five business segments, with total underlying orders excluding currency turning slightly positive in December 2009. This indicates a potential bottoming out of the downturn experienced in the prior periods. The report also detailed upcoming investor events, including a conference call to discuss Q1 2010 results and an Annual Investment Community Update.
Key Highlights
- 1Emerson reported on its first-quarter 2010 results, with a press release furnished as an exhibit.
- 2The company provided a trailing three-month order summary by business segment, showing varied performance and currency impacts.
- 3Total Emerson underlying orders excluding currency turned slightly positive in December 2009.
- 4Sequential improvement in underlying order trends (excluding currency) was observed across all five business segments for the trailing three-month period.
- 5Process Management orders remained a concern, down 10-15% in the trailing three months, though showing modest improvement.
- 6Network Power and Climate Technologies segments showed positive order trends, driven by Asia and specific end-markets.
- 7Emerson scheduled an investor conference call for February 2, 2010, to discuss Q1 results and an Annual Investment Community Update for February 5, 2010.
Frequently Asked Questions
The main takeaway is a sign of stabilization and potential recovery. While overall orders were still somewhat negative year-over-year, the underlying order trends, excluding currency, showed sequential improvement in all five business segments, turning slightly positive in December 2009. This suggests that demand may be bottoming out.
Network Power and Climate Technologies showed positive order trends, driven by growth in Asia and specific end-markets. Industrial Automation also showed sequential improvement. Process Management, while showing modest improvement, remained a weaker segment with orders down 10-15% year-over-year in the trailing three months.
Currency exchange rates had a positive impact on reported orders. For the trailing three-month period ending December 2009, currency positively impacted total orders by approximately 6 percentage points, and had a more significant positive impact on specific segments like Process Management and Industrial Automation.
Emerson's senior management discussed the first quarter 2010 results during an investor conference call held on Tuesday, February 2, 2010, at 2:00 p.m. Eastern Standard Time. A replay was available on their Investor Relations website. Additionally, an Annual Investment Community Update was scheduled for February 5, 2010, also with a webcast available.