Business Context and Reporting Period
This Form 8-K filing by Emerson Electric Co. was submitted on June 21, 2018. The report serves as a Regulation FD disclosure providing updates on the company's three-month trailing orders for the period ending May 2018.
Key Financial Metrics
The filing focuses exclusively on order growth rates rather than revenue, profit, or cash flow figures. The reported metrics are percentage changes versus the prior year, calculated as trailing three-month averages. These figures include the impact of the Valves & Controls acquisition and currency translation, while excluding other acquisitions and divestitures.
| Segment | March 2018 | April 2018 | May 2018 |
|---|---|---|---|
| Automation Solutions | 10% | 10% to 15% | 5% to 10% |
| Commercial & Residential Solutions | 5% | 0% to 5% | 0% to 5% |
| Total Emerson | 5% to 10% | 5% to 10% | 5% to 10% |
Note: The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Commentary
- Order Growth Trend: Total Emerson trailing three-month orders increased in the range of 5% to 10% for May 2018.
- Acquisition Impact: The Valves & Controls acquisition has a slightly positive impact on the orders growth rates for both Automation Solutions and Total Emerson.
- Consistency: Underlying orders growth (including the acquisition) remained within the 5% to 10% range previously communicated at the company's annual Investor Conference in February.
Guidance, Risks, and Unusual Items
The filing contains forward-looking statements subject to risks and uncertainties. Management explicitly states they undertake no obligation to update these statements. Key risks identified include:
- Economic and currency conditions.
- Market demand, pricing, and competitive factors.
- Protection of intellectual property and technological factors.
- The impact of the Tax Cuts and Jobs Act.
Note: The filing text does not provide specific updated financial guidance or details on unusual items beyond the standard risk disclosures.
Investor Verification Checklist
- Verify the specific contribution of the Valves & Controls acquisition to the reported order growth rates.
- Confirm the currency translation impact on the reported percentages versus underlying organic growth.
- Review the most recent Form 10-K for detailed financial metrics (revenue, profit, debt) not included in this 8-K.
- Assess the potential impact of the Tax Cuts and Jobs Act on future cash flows and tax provisions.