What is the overall trend in Emerson's order growth as of September 2011?

In the trailing three months ending September 2011, Emerson's overall underlying order growth moderated, with the September figure showing a range of 0% to +5%. This moderation was attributed to currency exchange rate impacts and challenging comparisons to the prior year.

Which business segments are performing well, and which are facing challenges?

Process Management continues to be a strong performer, driven by global capital investments in the oil and gas industry. Industrial Automation, Network Power, and Tools & Storage are showing modest growth. However, Climate Technologies is experiencing continued weakness, particularly in the U.S. and European residential and commercial markets.

What is the impact of currency exchange rates on Emerson's reported orders?

Currency exchange rates had a negative impact on reported order growth. Excluding currency effects, the trailing three-month underlying order growth would have exceeded 5%. Specifically, currency deducted approximately 3 percentage points from the overall growth rate in the trailing three months.

Are there any potential supply chain risks mentioned in the filing?

Yes, Emerson highlighted potential supply chain disruptions due to severe flooding in Thailand, which is a sourcing area for electrical and electronic components used in some products. The company is implementing contingency plans to minimize the impact.

EMR 8-K: Regulation FD — Oct 24, 2011

Summary

Emerson Electric Co. (EMR) filed an 8-K on October 24, 2011, providing an update on its underlying order trends for the trailing three-month period ending September 2011. While overall order growth moderated, particularly in September, the company highlighted continued strength in Process Management, driven by global capital goods and oil & gas industry investments. The company also announced its upcoming fourth quarter and fiscal year 2011 earnings release and conference call scheduled for November 1, 2011. Despite some headwinds from currency exchange rates and challenging prior-year comparisons, Emerson's backlog remained at record levels. Investors should note potential supply chain disruptions for certain products due to flooding in Thailand, which the company is actively managing. The report also indicates mixed performance across business segments, with Network Power, Industrial Automation, and Tools & Storage showing modest growth, while Climate Technologies experienced continued weakness.

Key Highlights

1Trailing three-month underlying order growth for Emerson was between 0% and +5% in September 2011, moderating from previous months.
2Process Management remained a key growth driver, with strong underlying orders benefiting from global capital investment in the oil and gas sector, despite currency headwinds and difficult prior-year comparisons.
3The company's backlog was at record levels, up approximately $400 million year-over-year, indicating continued demand.
4Potential supply chain disruptions are being managed due to flooding in Thailand affecting component sourcing for some Process Management products.
5Network Power, Industrial Automation, and Tools & Storage segments demonstrated modest growth, while Climate Technologies continued to face weakness, particularly in residential and commercial markets.
6Emerson will release its fourth quarter and fiscal year 2011 results on November 1, 2011, with a conference call to follow.
7Currency exchange rates had a notable impact, reducing overall growth by approximately 3 percentage points in the trailing three months.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Oct 24, 2011)

Summary

Key Highlights

Frequently Asked Questions