Summary
Emerson Electric Co. (EMR) filed an 8-K on March 25, 2014, providing an update on its orders growth for the trailing three months ending February 2014. The report indicates a slight improvement in global macroeconomic conditions, with total Emerson orders showing a growth of 0% to +5% compared to the prior year, consistent with the previous reporting periods. Underlying orders, excluding currency impacts and acquisitions/divestitures, increased by 4%, driven by broad-based segment growth and sequential improvements in four out of five business segments. While Asia demonstrated solid demand, particularly in China, the company noted dampening effects from political instability in Russia and Ukraine, and adverse weather conditions in the U.S. impacting near-term sales, which are expected to recover.
Key Highlights
- 1Total Emerson trailing three-month orders growth for February 2014 was in the range of 0% to +5% year-over-year.
- 2Underlying orders, excluding currency effects (2 percentage points unfavorable), grew by 4% for the trailing three months.
- 3Four out of five business segments showed sequential improvement in demand.
- 4Asia, particularly China, remained a market with solid demand, while Russia and Ukraine experienced dampened demand due to political instability.
- 5Harsh U.S. weather negatively impacted February orders and sales, with expectations of recovery in subsequent months.
- 6Emerson announced upcoming investor events, including the Q2 2014 earnings release on May 6, 2014, and a presentation at the Electrical Products Group Conference on May 21, 2014.