8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Aug 24, 2010)

Filed August 24, 2010For Securities:EMR

Summary

Emerson Electric Co. (EMR) filed an 8-K on August 24, 2010, to disclose underlying order growth trends for the three months ending July 2010, as well as an upcoming investor event. The report indicates that while overall order growth remains strong at 10-15%, it is moderating as expected from peak levels. Currency exchange rates had a negative impact, reducing total company growth by approximately 7 percentage points. Key business segments like Process Management and Industrial Automation showed robust growth, with Process Management benefiting from strength in oil and gas, and power end markets. Network Power experienced a slight sequential increase in orders excluding currency, though it was impacted by foreign exchange. Climate Technologies saw a moderation in growth due to tougher year-over-year comparisons, and Appliance and Tools maintained consistent trends.

Key Highlights

  • 1Underlying order growth for the trailing three months ending July 2010 remained strong, ranging from 10% to 15% for Emerson overall.
  • 2Order growth is moderating from peak levels as anticipated, with expectations for continued normalization.
  • 3Currency exchange rates negatively impacted total Emerson order growth by approximately 7 percentage points.
  • 4The Process Management segment showed significant strengthening, with underlying order growth at its highest level since March 2010.
  • 5Industrial Automation continued to experience strong order growth, driven by electrical drives and power transmission businesses.
  • 6Network Power's order growth, excluding currency, saw a slight sequential increase but was negatively affected by foreign exchange rates.
  • 7Emerson announced its Chief Operating Officer, Edward L. Monser, would present at the Morgan Stanley Global Industrials Unplugged Conference on August 31, 2010.

Frequently Asked Questions

Emerson reported that its overall underlying order growth for the three months ending July 2010 was strong, between 10% and 15%. However, the growth is moderating from its peak, which is an expected trend as the company faces less favorable year-over-year comparisons.

Currency exchange rates had a negative impact on Emerson's reported order growth. For the total company, currency headwinds reduced growth by approximately 7 percentage points. Some segments, like Process Management, experienced even larger negative impacts from currency.

Process Management is showing significant strengthening, reaching its highest order growth level in months, driven by improvements in oil and gas, and power end markets. Industrial Automation also maintained strong growth. Network Power's underlying growth excluding currency increased slightly, while Climate Technologies is moderating from very high levels due to tougher comparisons.

Emerson's Chief Operating Officer, Edward L. Monser, is scheduled to present at the Morgan Stanley Global Industrials Unplugged Conference on August 31, 2010, in New York City. This provides an opportunity for investors to gain further insights into the company's performance and outlook.