Summary
This 8-K filing from Emerson Electric Co. (EMR) on July 22, 2013, provides a snapshot of the company's order trends for the three months ending June 2013, offering insights into segment performance and overall business momentum. The report indicates a positive turn in total company orders, moving from negative growth in the preceding months to a slight positive range (0 to +5%) in June. This improvement is largely attributed to easing year-over-year comparisons and a stabilization in weaker markets, although management acknowledges continued economic uncertainty and cautious global business confidence. Key drivers for this improvement appear to be the Process Management segment, benefiting from robust global investment in the energy sector, and a recovery in Climate Technologies orders. While Industrial Automation continues to face headwinds, the rate of decline is improving. The company also announces an upcoming investor event on August 6, 2013, to report its third quarter 2013 results, providing a near-term catalyst for investors to evaluate the ongoing trends.
Key Highlights
- 1Total Emerson orders showed sequential improvement, turning positive (0 to +5% growth) in the three months ending June 2013, a rebound from prior negative growth periods.
- 2Process Management orders were a key positive contributor, with growth accelerating to +10 to +15% in June, driven by global energy, oil, and gas investments.
- 3Industrial Automation orders, while still declining, showed an improving rate of decrease, with the business essentially flat excluding the power generating alternators and renewable energy markets.
- 4Network Power orders continued sequential improvement, though still showing a year-over-year decline, with investment in data center and telecommunications infrastructure remaining soft.
- 5Climate Technologies orders resumed growth in June, supported by warmer weather in the U.S. and improved refrigeration business performance.
- 6Commercial & Residential Solutions maintained moderate growth, particularly in U.S. residential markets.
- 7Emerson will report its third quarter 2013 results on August 6, 2013, with a conference call for investors.