Business Context and Reporting Period
Emerson Electric Co. filed a Form 8-K on March 14, 2017, pursuant to Regulation FD. The report discloses trailing three-month order data for the period ending February 2017, covering the Automation Solutions and Commercial & Residential Solutions segments.
Key Financial Metrics
The filing provides order percentage changes versus the prior year on a trailing three-month basis, excluding acquisitions and divestitures but including currency translation. Specific revenue, profit, cash flow, or debt figures are not included in this document.
| Segment | Dec '16 | Jan '17 | Feb '17 |
|---|---|---|---|
| Automation Solutions | -10% to -5% | 0% | 0% |
| Commercial & Residential Solutions | 5% to 10% | 0% to 5% | 0% to 5% |
| Total Emerson | -5% to 0% | 0% to 5% | 0% to 5% |
For the trailing three months ending February 2017, total orders increased 2 percent. Underlying orders (excluding favorable currency translation) increased 1 percent.
Material Changes and Segment Commentary
- Automation Solutions: Orders were flat year-over-year. Underlying trailing three-month orders declined low-single digits but showed slight improvement versus January. North America and Asia saw growth, while other regions declined. North American growth was driven by oil and gas MRO spending. Currency translation added 1 percent.
- Commercial & Residential Solutions: Orders increased mid-single digits. Growth was driven by steady North American air conditioning demand and solid growth in Asia (including China) and Europe. Sensors and controls showed strong growth, and professional tools saw slight growth due to U.S. construction markets. Currency translation was negligible.
Guidance, Risks, and Unusual Items
The filing contains forward-looking statements subject to risks and uncertainties, including economic and currency conditions, market demand, pricing, intellectual property protection, and competitive factors. The company explicitly states it undertakes no obligation to update these statements. No specific financial guidance or unusual items were disclosed in this report.
Investor Verification Checklist
- Verify the distinction between reported order growth (2%) and underlying order growth (1%) to assess the impact of currency translation.
- Confirm the specific regional performance drivers, particularly the divergence between North America/Asia growth and declines in other regions for Automation Solutions.
- Review the most recent Form 10-K for detailed risk factors referenced in the forward-looking statements.
- Note that this filing contains order data only; verify actual revenue and earnings figures in the subsequent quarterly earnings release.