Summary
This 8-K filing from Emerson Electric Co. (EMR) on December 20, 2012, provides an update on the company's order growth trends for the three months ending November 2012. Overall, Emerson experienced flat order growth for the trailing three-month period compared to the prior year, reflecting cautious business investment amidst global economic uncertainty. While certain segments like Process Management, Network Power, Climate Technologies, and Commercial & Residential Solutions showed improving or continued growth trends, the Industrial Automation segment remained weak, impacted by declining global capital goods markets. The company also provided specific segment commentary, noting that Process Management orders were supported by the oil and gas, chemical, and power sectors, with strong performance in Asia and the Middle East/Africa offsetting slowing North American demand. Industrial Automation faced challenges, particularly in Europe. Network Power saw improved trends but remained negative due to persistent weakness in global telecommunications and IT. Climate Technologies experienced modest growth driven by improved demand in the U.S. and Asia, while Commercial & Residential Solutions benefited from solid demand in U.S. residential markets. Currency translation had a mixed impact across segments, with a net positive contribution of 3 percentage points to total company orders.
Key Highlights
- 1Emerson Electric Co. reported flat overall order growth for the trailing three months ending November 2012, indicating a cautious business investment environment.
- 2The Process Management segment showed continued growth, supported by the oil/gas, chemical, and power end markets, particularly in Asia and MEA.
- 3Industrial Automation orders declined due to weakness in global capital goods markets, especially in Europe.
- 4Network Power order trends improved but remained negative, with persistent challenges in global telecommunications and IT.
- 5Climate Technologies experienced modest order growth, driven by improved demand in the U.S. and Asia.
- 6Commercial & Residential Solutions saw order growth, primarily due to strong demand in U.S. residential markets.
- 7Currency translation had a positive impact, contributing 3 percentage points to the total Emerson orders growth for the period.