Summary
Emerson Electric Co. (EMR) filed an 8-K on January 26, 2011, providing an update on its order trends for the three months ending December 2010. The report highlights continued strong order growth for the company, with December marking the 10th consecutive month of double-digit order growth on a trailing three-month basis. This positive momentum is a key indicator of improving demand across several of Emerson's core business segments. The report details segment-specific performance, with Process Management and Industrial Automation showing robust growth driven by large global projects and a recovery in capital spending. While Network Power's growth moderated, particularly in Asia due to tough prior-year comparisons, Climate Technologies showed strengthening orders, especially in Asia and North American residential markets. Tools and Storage performance remained consistent, indicating a more subdued recovery in U.S. consumer discretionary spending. Investors will also note upcoming events, including the Q1 2011 earnings call and an Annual Investment Community Update, offering further opportunities for insight into the company's performance and outlook.
Key Highlights
- 1Emerson Electric experienced its 10th consecutive month of double-digit order growth on a trailing three-month basis as of December 2010.
- 2The Process Management segment demonstrated strong order growth, fueled by large global projects and an early-stage global recovery in its end markets.
- 3Industrial Automation also saw robust order trends, benefiting from improving capital goods end markets and a recovery in global capital spending.
- 4Network Power order growth moderated, with weaker performance in Asia due to a strong prior-year comparison influenced by China's stimulus programs.
- 5Climate Technologies orders strengthened, driven by Asia and modest increases in North American residential markets, though European markets remained weaker.
- 6Tools and Storage orders remained consistent, with strength in tools offset by weakness in residential businesses, suggesting slow U.S. consumer discretionary spending recovery.
- 7The company announced upcoming investor events, including its Q1 2011 earnings call on February 1, 2011, and an Annual Investment Community Update on February 3, 2011.