Summary
Emerson Electric Co. (EMR) filed an 8-K on May 4, 2010, to report its second quarter 2010 financial results and provide an update on its order trends. The report indicates a positive trajectory for the company, with a 10-15% increase in total Emerson orders for the trailing three-month period ending March 2010, a significant improvement from previous months and a sign of strengthening demand across key segments. This growth was positively influenced by a 4% currency tailwind. The company highlighted broad-based order improvement, with all five business segments experiencing positive underlying order trends, excluding currency impacts. Notably, Process Management and Industrial Automation segments saw their order trends turn positive. Climate Technologies continued its strong performance, particularly in Asia and North America. The report also mentions an increase in backlog as orders exceeded sales for the quarter, suggesting robust future revenue potential. Investors should note that the press release accompanying this filing includes non-GAAP financial measures, which management believes provide useful supplemental insights.
Key Highlights
- 1Emerson Electric reported a 10-15% increase in trailing three-month orders ending March 2010, indicating a rebound in demand.
- 2Currency exchange rates positively impacted orders by 4%, but underlying order trends excluding currency were positive across all five business segments.
- 3Process Management and Industrial Automation segments saw their order trends turn positive, signaling recovery in these industrial sectors.
- 4Climate Technologies continued to exhibit strong order growth, driven by demand in Asia and North America for air-conditioning and refrigeration.
- 5The company's backlog increased as orders outpaced sales, suggesting a healthy pipeline for future revenue.
- 6Emerson is hosting an investor conference call on May 4, 2010, to discuss Q2 2010 results and will present at two upcoming investor events in May and June 2010.
- 7The filing includes non-GAAP financial measures such as business segment EBIT and EBIT margin, which management considers useful for evaluating performance.