Summary
Emerson Electric Co. (EMR) filed an 8-K on August 3, 2010, primarily to furnish a press release detailing its third quarter 2010 financial results. The key takeaway for investors is the strong order growth across most segments, indicating a recovery in demand. Total company underlying order growth for the trailing three months ending June 2010 was in the 10-15% range, significantly up from the previous year's easier comparison period. Excluding currency impacts, which presented a headwind, underlying order growth improved to its highest level since orders turned positive in February 2010. Specific segments like Industrial Automation and Climate Technologies demonstrated robust performance, with double-digit growth. Network Power also showed strengthening orders. While Process Management experienced some negative currency impact and MRO demand improvement, project orders are starting to increase, with larger projects anticipated later in 2011. Overall, the filing paints a positive picture of recovering business momentum for Emerson heading into the latter half of 2010.
Key Highlights
- 1Strong overall underlying order growth for the trailing three months ending June 2010, ranging from 10% to 15%.
- 2Underlying order growth excluding currency headwinds improved to its highest level since February 2010, signaling accelerating organic demand.
- 3Industrial Automation and Climate Technologies exhibited very high and strong order growth, respectively, driven by various end markets.
- 4Process Management saw strengthening MRO demand and increasing small/medium project orders, with larger project quoting activity picking up.
- 5Network Power orders continued to strengthen, with positive growth in key sub-segments.
- 6Currency exchange rates negatively impacted reported orders by approximately 5% overall for the trailing three months.
- 7The company announced its Q3 2010 results via a press release furnished with the filing and provided details on upcoming investor events, including a conference call and participation in the Morgan Stanley Global Industrials Unplugged Conference.