Summary
Emerson Electric Co. (EMR) filed an 8-K on April 23, 2013, reporting on its March 2013 order trends and providing an update on its full-year 2013 outlook. The company indicated that trailing three-month order trends deteriorated in March, reflecting a sluggish global economy with cautious business investment and weaker confidence in North America and Asia, and further deceleration in Europe. While underlying orders decreased by 2%, the company maintained its full-year 2013 earnings per share (EPS) guidance range of $3.53 to $3.63, with 70-80% of the annual EPS increase expected to be achieved in the first half of the year. However, Emerson now expects underlying and reported sales growth to be at the low end of its previously stated 2-5% range due to the challenging economic climate impacting global business investment.
Key Highlights
- 1Trailing three-month order trends weakened in March 2013, signaling a slowdown in global economic activity and business investment.
- 2Full-year 2013 EPS guidance of $3.53 to $3.63 remains unchanged, with a significant portion expected in the first half.
- 3Expected full-year sales growth revised to the low end of the 2-5% range due to economic headwinds.
- 4Process Management orders were impacted by a strong U.S. dollar, although underlying growth was positive in key end markets.
- 5Industrial Automation orders remained very weak, particularly in Europe, due to challenging market conditions for industrial capital goods.
- 6Network Power orders saw weak demand for mobile devices and protracted weakness in Europe.
- 7Climate Technologies showed moderating growth in North America/Asia residential markets but weakness in Europe and transportation refrigeration.
- 8Emerson announced upcoming investor events, including Q2 2013 earnings on May 7th and a presentation at the Electrical Products Group Conference on May 20th.