Business Context and Reporting Period
This Form 8-K filing by Emerson Electric Co. is dated March 26, 2013. The report provides Regulation FD disclosure regarding trailing three-month order growth trends through February 2013, comparing performance against the prior year.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. It focuses exclusively on percentage ranges for order growth across business segments for December 2012, January 2013, and February 2013.
| Segment | Dec '12 Growth | Jan '13 Growth | Feb '13 Growth |
|---|---|---|---|
| Process Management | 0 to +5% | +5 to +10% | +5 to +10% |
| Industrial Automation | -10 to -5% | -10 to -5% | -10 to -5% |
| Network Power | -5 to 0% | -5 to 0% | -10 to -5% |
| Climate Technologies | +5% | +10 to +15% | +5 to +10% |
| Commercial & Residential Solutions | +5 to +10% | 0 to +5% | 0 to +5% |
| Total Emerson | 0% | 0 to +5% | 0% |
Material Changes and Trends
Trailing three-month orders reflected mixed trends, indicating a cautious global economy. Currency translation had a negligible impact.
- Process Management: Growth driven by investment in oil, gas, chemical, and power industries, with strength in Asia, Latin America, and Mexico. Europe demand improved, while U.S. and Middle East/Africa slowed.
- Industrial Automation: Continued pressure due to weak demand for industrial goods, particularly in power generating alternators and motors in Europe.
- Network Power: Declines attributed to volatile demand in embedded computing and power for mobile devices. Telecommunications power strength was offset by European weakness.
- Climate Technologies: Strong growth in Asia and U.S. residential air conditioning. Global refrigeration demand remained soft, especially in transportation.
- Commercial & Residential Solutions: Growth continued in U.S. residential markets, led by storage and vacuum businesses.
Outlook, Risks, and Upcoming Events
Management notes that the economic environment in Europe remains severely depressed with weakness persisting longer than expected. The filing includes standard forward-looking statements regarding risks such as economic conditions, currency fluctuations, market demand, and competitive factors.
Upcoming Events:
- May 7, 2013: Second quarter 2013 results to be reported with a conference call at 2:00 p.m. ET.
- May 20, 2013: CEO David N. Farr to present at the Electrical Products Group Conference in Longboat Key, Florida.
Investor Verification Checklist
- Verify the specific revenue and earnings figures for the second quarter 2013 when reported on May 7, 2013.
- Monitor the persistence of weakness in the European market and its impact on Industrial Automation and Network Power segments.
- Assess the sustainability of growth in Process Management and Climate Technologies given the mixed global economic backdrop.
- Review the full text of the 10-K for detailed risk factors referenced in the forward-looking statements.