Business Context and Reporting Period
This Form 8-K Current Report from Emerson Electric Co. is dated June 21, 2004. The filing provides Regulation FD disclosure regarding the company's GAAP underlying orders for the trailing three-month period ending May 2004, comparing performance against the prior year.
Key Financial Metrics
The filing focuses exclusively on order growth percentages rather than revenue, profit, or cash flow figures. The trailing three-month average underlying order growth for May 2004 is summarized below:
| Segment | May 2004 Growth |
|---|---|
| Process Control | 0% to +5% |
| Industrial Automation | +10% to +15% |
| Electronics and Telecom | +15% to +20% |
| HVAC | >20%+ |
| Appliance and Tools | +5% to +10% |
| Total Emerson | +10% to +15% |
The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Commentary
Underlying orders remained strong in May 2004, driven by solid demand across the company. Key drivers included:
- Currency Impact: Favorable exchange rates contributed approximately one percentage point to total growth. However, currency rates had a negative impact on the Process Control business, where underlying orders accelerated due to increases in measurement products, valves, and regulators, alongside growth in Asia, Europe, Latin America, and the Middle East.
- Industrial Automation: Orders accelerated with increased demand in the United States, specifically in industrial motors, power generation (alternators), fluid control, and industrial equipment.
- Electronics and Telecom: Strong growth continued, driven by OEM and systems businesses, strength in Asia, and solid U.S. demand.
- HVAC: Orders reflected continued worldwide gains and strength in the U.S. market.
- Appliance and Tools: Orders remained positive across nearly every business in consumer and professional markets.
Guidance, Outlook, and Upcoming Events
Emerson Electric Co. is scheduled to issue its third-quarter 2004 results on Tuesday, August 3, 2004. Senior management will discuss these results during an investor conference call beginning at 2:00 p.m. Eastern Standard Time. The call will be available via the Internet at the company's Investor Relations website, with a replay available for three months.
Investor Verification Checklist
- Verify the specific revenue and earnings figures for the third quarter when released on August 3, 2004, as this filing contains only order data.
- Monitor the impact of currency exchange rates on the Process Control segment, which faced negative currency effects despite order acceleration.
- Confirm the sustainability of the >20% order growth in the HVAC segment and the >15% growth in Electronics and Telecom.
- Review the upcoming Q3 earnings call transcript for updated guidance on the trailing three-month order trends.