Summary
Emerson Electric Co. (EMR) filed an 8-K on February 24, 2010, providing an update on its underlying orders for the three months ending January 2010. The report indicates a positive trend in order growth, with total underlying orders for Emerson turning flat to up 5 percent in January 2010, a significant improvement from the previous months. Currency fluctuations had a positive impact of over 5 percentage points on total orders during this period. Key business segments like Climate Technologies, Network Power, and Appliance and Tools are showing positive order trends, even when excluding currency impacts. While Process Management continues to experience declines, the rate of decline is moderating. Industrial Automation shows sequential improvement, with January orders turning positive. Overall, the filing suggests a bottoming out of order declines and a nascent recovery, particularly driven by international markets and specific product categories. Investors should note the increasing contribution of currency to reported order growth.
Key Highlights
- 1Total Emerson underlying orders turned flat to up 5% in January 2010, improving from prior months.
- 2Currency exchange rates positively impacted total orders by over 5 percentage points in January 2010.
- 3Climate Technologies, Network Power, and Appliance and Tools segments showed positive underlying order trends excluding currency.
- 4Industrial Automation orders improved sequentially, turning positive in January 2010.
- 5Process Management order declines are moderating, especially in the MRO portion.
- 6Network Power strength observed in embedded power, embedded computing, and Asia.
- 7Climate Technologies benefited from Asia and air-conditioning/refrigeration markets, offset by European weakness.