Summary
Emerson Electric Co. (EMR) filed an 8-K on November 20, 2012, providing an update on its trailing three-month order trends for August, September, and October 2012. The report indicates a continued slowdown in global economic growth, impacting business investment and consequently, Emerson's order intake. While some segments like Process Management and Commercial & Residential Solutions showed resilience or slight improvement, others like Industrial Automation and Network Power experienced declines, reflecting broader market pressures. The company's total orders decreased by 5% in August and were flat to slightly down in September and October, excluding acquisitions and divestitures. Currency translation had a mixed impact, adding 2 percentage points to total orders in October. Emerson anticipates these slow and choppy order patterns to persist in the near term due to market visibility challenges in key regions like the U.S., Europe, and China. Despite the current economic headwinds, Emerson also announced its 2013 Investor Conference scheduled for February 11-12 in Columbus, Ohio. This filing serves as a crucial update for investors, offering insights into the company's performance drivers and outlook amidst a challenging global economic environment.
Key Highlights
- 1Total Emerson orders saw a modest decline of 5% in August and remained flat to down slightly (-5% to 0%) in September and October 2012, on a trailing three-month average basis, excluding acquisitions and divestitures.
- 2Process Management orders demonstrated solid demand, ranging from 0% to +15% growth, driven by investments in oil and gas, chemical, and power industries, particularly strong in Asia.
- 3Industrial Automation and Network Power segments faced headwinds, with orders declining due to weak end markets and contracting telecommunications/IT sectors, although Network Power showed some improvement from prior declines.
- 4Climate Technologies orders experienced modest decreases globally, with mixed performance across regions and specific product lines.
- 5Commercial & Residential Solutions orders showed slight improvement, with growth in storage and food waste disposers offsetting declines in other areas.
- 6Currency translation had a mixed impact on orders, with a 2 percentage point positive contribution to total orders in October 2012.
- 7Emerson announced its 2013 Investor Conference will be held on February 11-12, 2013, in Columbus, Ohio, providing an opportunity for investors to engage with the company.