Summary
This 8-K filing from Emerson Electric Co. (EMR) on June 25, 2014, provides an update on the company's order trends for the three months ending May 2014. Overall, Emerson reported continued positive order growth, with trailing three-month averages showing a consistent increase of 5% to 10% year-over-year. This growth was supported by improving global business conditions, with underlying orders (excluding currency fluctuations) growing by 8% in May. The company's Process Management segment showed particular strength, driven by large projects in the oil and gas sector in North America. While most segments experienced growth, there were varied regional performances and specific business line dynamics. Process Management benefited from activity in North America, Europe, and Asia, though the Middle East/Africa region remained weak. Industrial Automation saw gradual demand recovery, and Network Power's growth was boosted by data center and telecommunications investment. Climate Technologies maintained moderate growth, with refrigeration leading the way, and Commercial & Residential Solutions showed modest increases despite slower conditions in the U.S. housing market. Investors are also reminded of the upcoming third-quarter 2014 earnings release and conference call scheduled for August 5, 2014.
Key Highlights
- 1Emerson Electric reported consistent 3-month order growth of 5% to 10% year-over-year, indicating a positive demand environment.
- 2Underlying orders, excluding currency impacts, grew by 8% for the trailing three months ending May 2014, suggesting organic strength.
- 3The Process Management segment was a key performer, driven by significant project activity in the North American oil and gas sector.
- 4Network Power showed solid growth, supported by investments in data center and telecommunications infrastructure globally.
- 5Climate Technologies maintained moderate growth, primarily due to strength in its refrigeration business.
- 6Commercial & Residential Solutions experienced modest order growth, partially offset by slower conditions in the U.S. housing market.
- 7Emerson will announce its third quarter 2014 results and hold an investor conference call on August 5, 2014.