Summary
Emerson Electric Co. (EMR) filed an 8-K on June 25, 2010, to provide an update on its order trends for the trailing three months ending May 2010, as well as to announce upcoming investor events. The report indicates a positive overall trend in underlying order growth, with total Emerson orders up 10-15% for the period. This growth was particularly strong in Industrial Automation and Climate Technologies, driven by increased demand across various sectors and favorable market conditions, including stimulus programs in Asia. Despite overall positive growth, the company noted that a strengthening U.S. dollar negatively impacted reported order growth by over 4 percentage points. Excluding currency fluctuations, underlying order growth improved, reaching its highest level since February 2010. Process Management also showed significant underlying growth when currency impacts were excluded, driven by maintenance, repair, and operations (MRO) demand. Investors should note the scheduled release of third quarter 2010 results on August 3, 2010, along with a conference call for further discussion.
Key Highlights
- 1Total Emerson underlying order growth for the trailing three months ending May 2010 was in the 10% to 15% range, showing a positive trend.
- 2Industrial Automation and Climate Technologies segments demonstrated particularly strong order growth, exceeding 20% in some instances.
- 3A strengthening U.S. dollar had a negative impact on reported order growth, reducing it by over 4 percentage points.
- 4Excluding currency impacts, underlying order growth for Emerson improved and was at its highest level since February 2010.
- 5Process Management segment's underlying orders, excluding currency, showed significant strengthening, reaching the highest level since November 2008.
- 6Emerson announced its third quarter 2010 earnings release and investor conference call are scheduled for August 3, 2010.