8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Jun 23, 2011)

Filed June 23, 2011For Securities:EMR

Summary

This Form 8-K filing by Emerson Electric Co. (EMR) on June 23, 2011, provides an update on the company's order trends for the trailing three months ending in May 2011. Overall, Emerson reported solid order growth, with total company orders increasing by 15% in May on a trailing three-month average basis compared to the prior year. This growth was primarily driven by the capital goods businesses, specifically Process Management and Industrial Automation, which both experienced order growth exceeding 20%. While the overall trend is positive, the filing notes that order growth is moderating from very high levels, and future comparisons will become more challenging. Currency exchange rates had a notable positive impact of approximately 7 percentage points on total Emerson orders. The company anticipates that order trends, excluding currency impacts, will remain in the 7-10% range for the remainder of the fiscal year. Investors should note the upcoming Q3 2011 earnings release and conference call scheduled for August 2, 2011.

Key Highlights

  • 1Total Emerson trailing three-month orders showed solid growth, reaching 15% in May 2011 compared to the prior year.
  • 2Process Management and Industrial Automation segments were key growth drivers, with orders exceeding 20% growth in the trailing three-month period.
  • 3Order growth is moderating from very high levels, and future year-over-year comparisons are expected to become more challenging.
  • 4Currency exchange rates had a positive impact of approximately 7 percentage points on overall Emerson orders.
  • 5Emerson expects underlying order trends (excluding currency) to remain in the 7-10% range for the rest of the fiscal year.
  • 6Network Power orders showed continued improvement, reaching a 5-10% growth range.
  • 7The company announced its third quarter 2011 earnings release and investor conference call will be held on August 2, 2011.

Frequently Asked Questions

The main takeaway is that Emerson Electric Co. experienced solid order growth in the trailing three months ending May 2011, with total company orders up 15% year-over-year. This growth was led by strong performance in Process Management and Industrial Automation, although the company acknowledges that the pace of growth is moderating and future comparisons will be tougher.

Currency exchange rates had a positive impact of approximately 7 percentage points on Emerson's total orders for the trailing three-month period ending May 2011. For the Process Management segment, the currency impact was even more significant at 14 percentage points.

Emerson anticipates that order trends, excluding the impact of currency fluctuations, will remain in the 7% to 10% range for the balance of the fiscal year. This outlook was communicated at the Electrical Products Group conference in May.

Emerson is scheduled to issue its third quarter 2011 results on Tuesday, August 2, 2011, followed by an investor conference call at 2:00 p.m. Eastern Daylight Time.