Summary
Emerson Electric Co. (EMR) filed an 8-K on October 28, 2010, disclosing positive order trends for the trailing three-month period ending September 2010. The company reported an overall order increase of approximately 18%, driven by significant growth in its capital-related segments: Process Management, Industrial Automation, and Network Power. These segments benefited from improved demand across various end markets, including oil and gas, chemical, power, refining, and capital goods. The report also noted that currency exchange rates had a negligible impact on order growth. While Climate Technologies showed continued positive growth, it was moderated by tougher prior-year comparisons in North America. The Tools and Storage segment remained consistent, with a slight reclassification of certain motor businesses into the Industrial Automation segment. Investors are also advised of an upcoming investor call on November 2, 2010, to discuss the company's fourth quarter and fiscal year 2010 results.
Key Highlights
- 1Emerson Electric reported a significant acceleration in orders, with trailing three-month orders increasing approximately 18% year-over-year.
- 2Capital-related businesses, including Process Management and Industrial Automation, showed strong double-digit order growth.
- 3Network Power also maintained robust double-digit growth, with notable sequential improvement in Asia.
- 4Currency exchange rates had a minimal impact on the reported order growth.
- 5Climate Technologies saw continued positive order growth, though North American residential business faced tougher prior-year comparisons.
- 6A reclassification of motor businesses into the Industrial Automation segment was noted, with the segment now named Tools and Storage.
- 7Emerson announced an investor conference call for November 2, 2010, to discuss Q4 and FY2010 results.