What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to provide investors with an update on Emerson Electric's trailing three-month order growth trends as of September 2014, broken down by segment. It also addresses the impact of currency fluctuations and provides forward-looking commentary on expected sales growth and backlog.

What is the impact of currency translation on Emerson's reported results?

Currency translation had a notable negative impact on reported order and sales growth. For September 2014, currency translation deducted 4 percentage points from underlying order growth. The company expects this trend to continue, reducing reported sales growth by approximately 2% in 2015 if current exchange rates persist.

What is the outlook for Emerson's sales growth in 2015?

Despite the currency headwinds, Emerson anticipates that its underlying sales growth in 2015 will slightly exceed the rate of growth seen in 2014. This optimism is based on the recent strength in orders and an elevated backlog.

EMR 8-K: Regulation FD — Oct 22, 2014

Q: How is the company's order growth performing, and what are the key drivers?

Overall order growth was moderate. Underlying orders, which exclude currency impacts, increased by 9% in September 2014. The Process Management and Climate Technologies segments were the primary drivers of this underlying growth. North America continues to be a strong market for the company.

Summary

Emerson Electric Co. (EMR) filed an 8-K on October 22, 2014, to provide an update on its trailing three-month order growth for July, August, and September 2014. The report indicates moderate order growth, with a 9% increase in underlying orders (excluding currency impacts) for September, primarily driven by the Process Management and Climate Technologies segments. Strength was noted in North America, particularly in energy and HVAC markets, while other regions experienced varied demand due to economic uncertainty. The company highlighted the significant impact of currency translation, which is expected to reduce reported sales growth in 2015, but anticipates underlying sales growth to slightly exceed 2014 levels due to strong orders and backlog. The filing also provided segment-specific order trends. Process Management showed robust underlying growth despite currency headwinds, Industrial Automation experienced a slowdown, Network Power was unchanged overall with modest underlying improvement, and Climate Technologies saw robust growth fueled by U.S. residential air conditioning demand ahead of regulatory changes. Commercial & Residential Solutions demonstrated solid growth, especially in North America. Investors were also informed of upcoming events, including the Q4 and FY2014 earnings release and a presentation at the R. W. Baird Industrial Conference.

Key Highlights

1Trailing three-month orders showed moderate growth, with underlying orders (excluding currency) up 9% in September 2014.
2Process Management and Climate Technologies were key growth drivers for underlying orders.
3North America demonstrated continued strength, supported by energy market conditions and HVAC industry inventory build-up.
4Currency translation had a significant negative impact, expected to reduce reported sales growth by 2% in 2015.
5Underlying sales growth for 2015 is anticipated to slightly exceed 2014 levels, supported by current order momentum and backlog.
6Climate Technologies benefited from accelerating demand in U.S. residential air conditioning due to upcoming regulatory changes.
7Emerson scheduled its Q4 and FY2014 earnings release for November 4, 2014.

EMERSON ELECTRIC CO 8-K Report, Regulation FD Disclosure (Oct 22, 2014)

Summary

Key Highlights

Frequently Asked Questions