8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (May 17, 2011)

Filed May 17, 2011For Securities:EMR

Summary

This Form 8-K filing from Emerson Electric Co. (EMR) on May 17, 2011, provides an update on the company's order trends for the three months ending April 2011. The report indicates solid overall order growth, with a total Emerson increase of 10-15% year-over-year for the trailing three months. This performance is primarily driven by strong global capital goods end markets, particularly in the Process Management and Industrial Automation segments, which both saw order growth exceeding 20%. The filing also notes moderating growth rates as comparisons become tougher, and a positive currency impact of approximately 5 percentage points on total orders.

Key Highlights

  • 1Total Emerson trailing three-month order growth was strong at 10-15% year-over-year as of April 2011.
  • 2Process Management and Industrial Automation segments showed robust growth, exceeding 20% in trailing three-month orders.
  • 3Network Power orders improved, showing a 5% increase in the trailing three-month period.
  • 4Climate Technologies maintained positive order growth, though it moderated against difficult prior year comparisons and experienced a decline in Asia due to fiscal tightening in China.
  • 5Order trends are moderating due to tougher year-over-year comparisons, with underlying organic growth at approximately 8%.
  • 6Currency exchange rates provided a positive impact of 5 percentage points on total Emerson orders.
  • 7The company announced upcoming investor event presentations by CEO David N. Farr in May and June 2011.

Frequently Asked Questions

Emerson Electric Co. reported solid overall order trends in the three months ending April 2011, with total orders up 10-15% year-over-year. This growth was primarily driven by strength in global capital goods end markets.

The Process Management and Industrial Automation segments are demonstrating particularly strong performance, with trailing three-month order growth exceeding 20%. Network Power also showed improvement with a 5% increase in orders.

Yes, the report notes that order growth rates are starting to moderate as the company faces tougher year-over-year comparisons. Underlying organic order growth, excluding currency impacts, has moderated to approximately 8%.

Currency exchange rates had a positive impact on Emerson's orders, contributing approximately 5 percentage points to the overall order growth. The Process Management segment specifically saw an 11 percentage point benefit from currency.