Business Context and Reporting Period
Emerson Electric Co. filed this Form 8-K on November 4, 2003, to report results for the fourth quarter and fiscal year ended September 30, 2003. The filing includes a press release (Exhibit 99.1) containing earnings results and Regulation FD disclosures regarding underlying order trends.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the referenced press release (Exhibit 99.1) but are not detailed in the body of this 8-K document. The filing notes the inclusion of non-GAAP financial measures in the press release.
Material Changes: Underlying Orders
The document provides a trailing 3-month average percent change in underlying orders compared to the prior year for September 2003:
- Total Emerson: +5% to +10% increase.
- Electronics and Telecom: +15% to +20% increase.
- HVAC: +10% to +15% increase.
- Industrial Automation: +5% to +10% increase.
- Process Control: 0% to +5% increase.
- Appliance and Tools: -5% to 0% decrease.
Management Commentary and Risks
Order Drivers:
- Currency: Favorable exchange rates positively affected September orders by approximately 3%.
- Process Control: Stable global demand for systems, services, and solutions; modest increases in short-cycle products.
- Industrial Automation: Improved due to growth in industrial goods markets, primarily in Europe.
- Electronics and Telecom: Driven by strength in OEM and systems businesses.
- HVAC: Solid growth across Emerson Climate Technologies worldwide.
- Appliance and Tools: Softness in commercial businesses, mixed consumer results, and the impact of exiting the power woodworking tools manufacturing business.
Non-GAAP Measures: Management states that non-GAAP measures in the press release are supplemental and should not be considered a substitute for GAAP financial information.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific GAAP revenue, net income, and earnings per share figures for Q4 and FY 2003.
- Verify the reconciliation between GAAP and non-GAAP financial measures provided in the press release.
- Assess the long-term impact of exiting the power woodworking tools business on the Appliance and Tools segment.
- Monitor the sustainability of the +15% to +20% order growth in the Electronics and Telecom segment.