8-KRegulation FD

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Jun 25, 2014)

Filed June 25, 2014For Securities:EMR

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.

Frequently Asked Questions

The filing indicates a positive trend in Emerson's orders. For the trailing three months ending May 2014, orders grew by 5% to 10% year-over-year, with underlying growth (excluding currency effects) at 8% for the month of May. This suggests a strengthening global demand environment for the company's products and services.

The Process Management segment is highlighted as a strong performer, driven by robust growth in unconventional oil and gas investments in North America, as well as activity in Europe and Asia. Network Power also showed healthy growth due to investments in data center and telecommunications infrastructure.

While most segments showed growth, the filing notes that the Middle East/Africa region remained weak for Process Management. Additionally, Commercial & Residential Solutions experienced slower market conditions in the U.S. housing sector, which impacted its overall growth.

Emerson is scheduled to report its third quarter 2014 results on Tuesday, August 5, 2014. A conference call to discuss these results will also take place at 2:00 p.m. Eastern Time on the same day.