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.