What was the overall order trend for Emerson in the three months ending May 2012?

Emerson's trailing three-month average orders showed a slight decline of 0 to +5% compared to the prior year. However, when excluding the impact of currency fluctuations, underlying orders were up 3% for the period ending May 2012.

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

Process Management is a strong performer, driven by investments in the oil and gas, chemical, and power industries. Challenges are seen in Industrial Automation and Network Power, impacted by the economic environment in Europe and weak telecommunications/IT markets. Climate Technologies and Commercial & Residential Solutions showed mixed and solid trends, respectively.

How is the strengthening U.S. dollar affecting Emerson's financial outlook?

The strengthening U.S. dollar is expected to negatively impact Emerson's total reported sales in 2012. Management estimated that dollar strength reduced sales by $50 million in the third quarter and could reduce sales by an estimated $120 million in the fourth quarter at an average euro exchange rate of $1.25/€.

Does Emerson expect to meet its full-year earnings per share (EPS) guidance?

Yes, Emerson reaffirmed its full-year EPS guidance to remain within the previously communicated range of $3.35 to $3.50, despite the various market headwinds and currency impacts.

EMR 8-K: Regulation FD — Jun 26, 2012

Summary

Emerson Electric Co. (EMR) released an 8-K filing on June 26, 2012, providing an update on its underlying orders for the three months ending May 2012. The report indicates a mixed performance across its business segments, with total company orders showing a slight decline of 0 to +5% on a trailing three-month average basis versus the prior year. However, excluding the impact of a strengthening U.S. dollar, underlying orders were up 3% for the three months ending May. Management cited the protracted European financial crisis, U.S. fiscal "cliff" concerns, and slowing U.S. and Chinese economies as primary headwinds impacting order growth. The Process Management segment continues to be a strong performer, driven by investments in the oil and gas, chemical, and power industries. Conversely, Industrial Automation and Network Power segments are experiencing declines, largely due to European economic weakness and a slowdown in telecommunications and IT markets, respectively. The company reaffirmed its full-year EPS guidance of $3.35 to $3.50, but noted that currency headwinds are expected to negatively impact total sales in 2012, with a specific impact identified for the third and fourth quarters. Emerson also announced its third quarter 2012 results call scheduled for August 7, 2012.

Key Highlights

1Trailing three-month underlying orders (excluding currency) were up 3% for the period ending May 2012.
2Strong performance in Process Management driven by energy and chemical industry investments.
3Declines in Industrial Automation and Network Power segments due to economic and market weakness, particularly in Europe.
4Protracted European financial crisis and U.S. fiscal cliff concerns are cited as key headwinds.
5Full-year EPS guidance remains within the previously communicated range of $3.35 to $3.50.
6Strengthening U.S. dollar is expected to negatively impact total reported sales in 2012, with estimated impacts for Q3 and Q4.
7Third quarter 2012 results and conference call are scheduled for August 7, 2012.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Jun 26, 2012)

Summary

Key Highlights

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