Summary
Emerson Electric Co. (EMR) released an 8-K filing on August 22, 2014, providing an update on its order growth trends for the three months ending July 2014. The report indicates a positive overall trend, with total company orders growing 5% to 10% in July, showing improvement from the prior month. This growth is attributed to gradually recovering global business investment, with North America demonstrating particular strength. Key business segments, including Process Management and Industrial Automation, experienced accelerated growth, driven by favorable market conditions in oil and gas for Process Management and a slow but steady recovery in global capital goods demand for Industrial Automation. While most segments showed positive momentum, currency translation had a mixed impact, with some segments benefiting and others being slightly diluted. Investors can look forward to upcoming presentations by key executives at industry conferences in September 2014.
Key Highlights
- 1Total Emerson orders showed growth of 5% to 10% in the trailing three months ending July 2014, indicating a positive business trend.
- 2Order growth accelerated in July 2014, consistent with previously communicated expectations of gradually recovering global business investment.
- 3North America was a strong performing region across several segments, particularly for Process Management and Commercial & Residential Solutions.
- 4Process Management orders experienced robust growth, driven by favorable oil and gas market conditions in North America.
- 5Industrial Automation orders reflected solid growth as global demand for capital goods continued its slow recovery.
- 6Network Power and Climate Technologies segments also showed moderate to solid growth, with specific drivers like telecommunications infrastructure and residential air conditioning regulatory changes.
- 7Emerson will be participating in two investor events in September 2014, providing opportunities for further dialogue with company leadership.