Summary
Emerson Electric Co. (EMR) filed an 8-K on March 23, 2010, primarily to disclose updated order trends as of February 2010. The report indicates a positive turnaround in overall order growth, with total Emerson orders in the trailing three-month period (December 2009 - February 2010) showing a 5-10% increase compared to the prior year. This marks a significant improvement from the previous reporting periods and suggests a recovery in demand. Notably, four out of the five business segments (Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools) experienced positive order growth excluding currency impacts. The Process Management segment, while still showing a decline (-5% to -10%), exhibited sequential improvement each month since October 2009. The company also highlighted positive currency impacts of approximately 2 percentage points on total orders and 4 percentage points on Industrial Automation orders. Investors should note the upcoming investor conference call on May 4, 2010, to discuss second quarter results, and a presentation by the CEO on May 19, 2010.
Key Highlights
- 1Total Emerson trailing three-month orders (Dec '09 - Feb '10) increased by 5-10% year-over-year.
- 2Four out of five business segments (Industrial Automation, Network Power, Climate Technologies, Appliance and Tools) showed positive order trends excluding currency.
- 3Process Management orders, though still declining (-5% to -10%), demonstrated sequential improvement each month since October 2009.
- 4Currency exchange rates positively impacted total orders by approximately 2 percentage points.
- 5Industrial Automation orders turned positive, driven by electronic drives and mechanical power transmission businesses.
- 6Climate Technologies continued to see strong growth across all businesses, particularly in Asia.
- 7Upcoming investor events include a Q2 2010 results call on May 4, 2010, and a presentation by CEO David N. Farr on May 19, 2010.