8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Feb 21, 2013)

Filed February 21, 2013For Securities:EMR

Summary

Emerson Electric Co. (EMR) reported its 3-month trailing orders growth as of January 2013, indicating a modest improvement in overall demand. While the total company showed flat to a slight positive growth in orders, there were significant variations across its business segments. Specifically, Climate Technologies experienced strong acceleration, and Process Management saw improved trends, primarily driven by energy investments in Asia and Latin America. These positive movements helped offset continued weakness in the Industrial Automation segment and the embedded computing and power business within Network Power. Investors should note the mixed performance across segments, highlighting the company's exposure to different end markets and geographic regions. The positive contribution from Climate Technologies and Process Management is a key takeaway, suggesting resilience in those areas. However, the persistent softness in Industrial Automation warrants attention, as it continues to impact overall growth. The report also mentions favorable currency translation, which contributed to reported growth, and the company reminds investors of inherent risks and uncertainties associated with forward-looking statements.

Key Highlights

  • 1Total Emerson 3-month trailing orders growth showed a slight improvement, reaching 0 to +5% by January 2013.
  • 2Climate Technologies experienced significant order acceleration, growing to +10 to +15% by January 2013, driven by strong demand in Asia and the U.S.
  • 3Process Management orders growth accelerated, particularly in Asia and Latin America, benefiting from energy investments.
  • 4Industrial Automation orders continued to decrease, reflecting ongoing weakness in industrial goods end markets.
  • 5Network Power orders remained relatively stable but showed mixed trends, with strength in network power systems offset by declines in embedded computing and power.
  • 6Commercial & Residential Solutions orders growth continued, led by U.S. residential end markets.
  • 7Favorable currency translation contributed 1 percentage point to underlying orders growth in January 2013.

Frequently Asked Questions

Overall, Emerson's total orders growth for the trailing three months ending January 2013 was between 0% and +5%. This indicates a slight improvement in demand, although performance varied significantly across different business segments.

Climate Technologies showed the strongest order acceleration, with growth reaching +10 to +15% by January 2013. Process Management also demonstrated improved trends. Conversely, Industrial Automation continued to experience decreasing orders, reflecting weakness in its end markets.

Currency translation had a positive impact, adding approximately 1 percentage point to the underlying orders growth for the trailing three months ending January 2013. For Process Management specifically, currency translation added 4 percentage points.

The strong order growth in Climate Technologies was driven by improving market conditions across all regions, particularly robust gains in Asia (China and India) for residential and commercial air conditioning, and strength in U.S. residential air conditioning demand.