Summary
Emerson Electric Co. (EMR) filed an 8-K on September 20, 2011, providing an update on its order growth trends for the three months ending August 2011. Overall, the company reported solid underlying order growth, averaging between 10% and 15% for the trailing three-month period. This growth was primarily driven by the Process Management and Network Power segments, which demonstrated resilience despite broader economic uncertainties in the U.S. and Europe. The company highlighted strong project activity and continued investment in the oil and gas industry as key contributors to Process Management's performance. The report also detailed segment-specific performance, noting slower growth in Industrial Automation due to tougher prior-year comparisons, and continued weakness in Climate Technologies, particularly in U.S. residential and commercial markets. Tools and Storage saw moderate growth, aided by weather-related orders. Emerson anticipates that its strong backlog will support robust revenue growth in the coming quarters. Investors were also informed of an upcoming earnings call on November 1, 2011, to discuss Q4 and full fiscal year 2011 results.
Key Highlights
- 1Emerson Electric reported a positive trailing three-month underlying order growth of 10% to 15% as of August 2011.
- 2Process Management and Network Power segments were key growth drivers, showing robust order trends despite global economic concerns.
- 3Oil and gas industry investments, particularly in refining, contributed significantly to Process Management order strength.
- 4Industrial Automation experienced slower growth due to challenging year-over-year comparisons, with mixed performance across sub-segments.
- 5Climate Technologies continued to face slightly negative order growth, mainly impacted by U.S. residential and commercial market weakness.
- 6A strong backlog is expected to ensure solid revenue growth over the next several quarters.
- 7Emerson scheduled its Q4 and full fiscal year 2011 earnings call for November 1, 2011.