Emerson Electric Co. Earnings Call Insights: Order Trends and Chinese New Year Visibility
Emerson Electric Co. (NYSE:EMR) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Julian Mitchell – Credit Suisse: Firstly, I guess just on the (indiscernible) throughout last year. Maybe if you could just talk a little bit about what’s driven that, if it’s something you are seeing in the January order intake or something in a specific region?
David N. Farr – Chairman and CEO: As we’ve been reporting in monthly orders, we have been a little bit more positive on the monthly order statements for the last couple months. Since September, October our order trends have turned up. In some of the businesses now in Climate Technologies, Network Power systems, residential solutions they have all now become positive and driving on a continuing basis on three-month roll. So from my perspective, this has been improving. It’s I will say a moderate amount of improvement from that standpoint, but just the global economies have stabilized and feel more comfortable for the financial institutions and I think money is again flowing and people are starting to make those investments, though it’s not a real robust economic environment out there, just look at what happened on average in the second half in the United States economy and so in total it’s still basically you’re looking about 2%, 3% type of growth and we’ll get into the various regions of the world next week, but I still see a 2%, 3%, 4% underlying growth in the general economic trend that we will be facing this year.
Julian Mitchell – Credit Suisse: And then just secondly, the issue of kind of mix comes up a lot in the slides in the different segments and how that affects your margin? How do you see that playing out over the balance of the year because I guess as you’ve emphasized the margin growth is very front-end-loaded, is that because there is a mix or something you think will carry on weighing on the margins over the balance of the year?