Summary
Emerson Electric Co. (EMR) filed an 8-K on December 22, 2014, providing an update on its 3-month trailing average orders growth for November 2014. The report indicates a modest increase in overall orders, with a flat growth rate for the trailing three months ending November 2014. This performance reflects mixed global market conditions and significant currency headwinds, which notably impacted reported order growth. Key segments like Climate Technologies and Process Management showed underlying strength, driven by factors such as inventory build ahead of regulatory changes in the HVAC industry and solid demand in North America and Europe, respectively. However, currency translation negatively impacted reported figures across most segments. The company also announced upcoming investor events, including the first-quarter 2015 earnings release and conference call on February 3, 2015, and its annual investor conference on February 19, 2015.
Key Highlights
- 1Overall trailing 3-month orders growth was flat (0% to +5% for November 2014), showing modest improvement from previous months.
- 2Currency translation had a significant negative impact, deducting 6 percentage points from total reported orders growth in November.
- 3Climate Technologies exhibited robust growth, particularly in U.S. residential air conditioning markets, benefiting from pre-regulatory inventory build-up.
- 4Process Management orders showed slowing but solid underlying growth, led by North America and Europe, despite unfavorable currency translation.
- 5Industrial Automation orders were flat, but underlying orders increased moderately, driven by specific business units, though demand for motors and drives remained weak.
- 6Network Power orders increased, primarily due to growth in data center markets, offsetting weakness in telecommunications investments.
- 7Emerson announced its Q1 2015 earnings release date (February 3, 2015) and its annual investor conference (February 19, 2015).