Business Context and Reporting Period
Company: Emerson Electric Co.
Filing Type: Form 8-K (Current Report)
Date of Report: February 3, 2009
Reporting Period: First Quarter 2009 (Q1 2009)
This filing announces the issuance of a press release regarding Q1 2009 results and provides Regulation FD disclosure on trailing three-month order trends through December 2008.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained in the referenced press release (Exhibit 99.1) which is not included in the provided text.
Order Trends (Trailing 3-Month Average vs. Prior Year):
| Segment | Oct '08 | Nov '08 | Dec '08 |
|---|---|---|---|
| Process Management | -5% | -15% to -10% | -10% to -5% |
| Industrial Automation | -5% to 0% | -15% | -25% to -20% |
| Network Power | -5% | -15% to -10% | -15% |
| Climate Technologies | -5% | -10% to -5% | -20% to -15% |
| Appliance and Tools | -15% to -10% | -20% to -15% | -25% |
| Total Emerson | -10% to -5% | -15% to -10% | -20% to -15% |
Material Changes and Segment Performance
- Overall Decline: Trailing three-month orders declined 15% to 20% in December 2008. Underlying orders (excluding currency) were down 15% to 20%, with currency negatively impacting orders by approximately 6 percentage points.
- Process Management: Orders down 5% to 10%. Currency had a negative impact of ~10 percentage points. Underlying orders remained positive in valve, measurement, and systems businesses.
- Industrial Automation: Impacted by weakening global capital spending. Currency negatively impacted growth by ~7 percentage points.
- Network Power: Strength in China power systems was offset by weakness in the rest of the segment.
- Climate Technologies: Negatively impacted by softness across global served markets.
- Appliance and Tools: Broad weakness across residential, non-residential, and consumer end markets.
Guidance, Outlook, and Risks
Outlook: Underlying orders, excluding currency, are expected to be in the -5% to -10% range on average for the next six months.
Risks and Contingencies: Forward-looking statements are subject to risks including economic and currency conditions, market demand, pricing, and competitive/technological factors.
Investor Events:
- Q1 2009 Results Conference Call: February 3, 2009, 2:00 p.m. EST.
- Annual Investment Community Update: February 6, 2009, New York City.
Key Facts for Investor Verification
- Verify specific Q1 2009 GAAP revenue, earnings per share, and cash flow figures in the full press release (Exhibit 99.1).
- Confirm the magnitude of currency headwinds on a segment-by-segment basis for the upcoming six months.
- Monitor the "underlying orders" metric (excluding currency) to validate the -5% to -10% management forecast.
- Assess the divergence between the positive underlying orders in Process Management versus the broader weakness in Industrial Automation and Appliance segments.