Summary
This 8-K filing from Emerson Electric Co. (EMR) provides an update on the company's order trends for the three months ending September 2013. Overall, Emerson reported modest order growth of 2%, consistent with the preceding months, indicating a continued, albeit uneven, global economic recovery. The report highlights improving trends in several key segments, including Process Management, Industrial Automation, and Climate Technologies. Notably, the exclusion of the Embedded Computing & Power business reveals a stronger underlying growth rate of approximately 4%, suggesting positive momentum in core operations.
Key Highlights
- 1Total Emerson orders grew by 2% for the trailing three months ending September 2013, consistent with prior periods.
- 2Excluding the Embedded Computing & Power business, underlying orders grew at a faster rate, approaching 4%, indicating positive momentum in core segments.
- 3Process Management orders saw robust growth of 4%, driven by investments in energy and chemical markets, particularly strong performance in China.
- 4Industrial Automation experienced its first underlying order growth since April 2012, signaling a moderate recovery in this previously weak segment.
- 5Network Power orders declined modestly, but the core Network Power Systems business showed positive growth, offset by the Embedded Computing & Power segment.
- 6Climate Technologies orders increased moderately, supported by strength in Europe and global refrigeration markets.
- 7Commercial & Residential Solutions demonstrated solid demand, especially in U.S. residential markets and specific product lines like professional tools and food waste disposers.
Frequently Asked Questions
Emerson reported a modest overall order growth of 2% for the three months ending September 2013. This growth rate was consistent with the preceding months, suggesting a stable, albeit uneven, global recovery.
Process Management and Climate Technologies are performing well, with Process Management seeing 4% growth driven by energy and chemical markets, especially in China. Commercial & Residential Solutions also shows solid demand. Industrial Automation is showing signs of recovery with its first positive order growth in over a year.
Network Power orders declined modestly. While the core Network Power Systems business is showing positive growth, this was offset by a decrease in the Embedded Computing & Power segment. The power generating alternators business within Industrial Automation remained negative but showed improvement.
Emerson is scheduled to report its fourth quarter and fiscal year 2013 results on Tuesday, November 5, 2013. A conference call to discuss these results will take place at 3:00 p.m. ET on the same day.