March Trailing Three-Month Underlying Orders were up 13 percent, as demand continued to be strong across both platforms. Second quarter
Second quarter Pretax Margin of 16.9 percent was up 30 basis points. Adjusted EBITA Margin, which excludes restructuring, first year purchase accounting charges, transaction costs and intangibles amortization expense, was 20.2 percent, up 20 basis points.
Earnings Per Share were
Operating Cash Flow was
"Emerson continues to execute through a dynamic and challenging environment. In the second quarter, we delivered solid margins and drove 10 percent underlying sales growth and over 20 percent adjusted EPS growth. Our performance was indicative of strong end market demand and successful navigation through supply chain constraints and inflationary pressures," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Despite ongoing uncertainty, our strong performance gives us confidence to increase our 2022 full year outlook.
"Today, Emerson is also announcing our decision to exit our
March trailing three-month underlying orders were up 17 percent driven by strong demand in all business groups and world areas. Backlog increased
Net sales increased 5 percent in the quarter, with underlying sales up 7 percent. The
Segment EBIT margin increased 210 basis points to 18.9 percent and Adjusted Segment EBITA margin, which excludes restructuring and intangibles amortization expense, increased 170 basis points to 21.5 percent. Favorable profitability was driven by increased volume, leverage, continued cost management and mix despite increased costs due to inflationary pressures.Commercial & Residential Solutions
March trailing three-month underlying orders were up 7 percent driven by continued strength in both the residential and commercial businesses. Backlog increased
Net sales increased 13 percent in the quarter, with underlying sales up 14 percent. The
Segment EBIT margin decreased 200 basis points to 19.7 percent and Adjusted Segment EBITA margin (as defined above) decreased 230 basis points to 20.5 percent. Profitability continues to be challenged by inflationary costs but was up sequentially as price less net material inflation continues to improve.2022 Updated Outlook
Emerson updated its 2022 full year outlook to reflect overall strong business performance while considering continued macroeconomic and geopolitical uncertainty, supply chain constraints and challenges related to COVID-19. Net and Underlying Sales guidance is increased by 2 percent to 8 to 10 percent and 9 to 11 percent, respectively. Earnings Per Share guidance of
The following tables summarize the updated fiscal year 2022 and third quarter 2022 guidance framework. Our guidance does not include the operational impact of the transaction with
2022 Guidance
Net Sales Growth
8% to 10%
Operating Cash Flow
Automation Solutions
6% to 8%
Capital Spend
Commercial & Residential Solutions
11% to 13%
Free Cash Flow
Dividend
Underlying Sales Growth
9% to 11%
Share Repurchase
Automation Solutions
7% to 9%
Commercial & Residential Solutions
12% to 14%
Tax Rate
22%
Restructuring Actions
GAAP EPS
Price-Cost
Adjusted EPS
2022 Q3 Guidance
Net Sales Growth
7% to 9%
Automation Solutions
4% to 6%
Commercial & Residential Solutions
11% to 13%
Underlying Sales Growth
9% to 11%
Automation Solutions
7% to 9%
Commercial & Residential Solutions
13% to 15%
GAAP EPS
Adjusted EPS
Note 1: All figures are approximate Upcoming Investor Events
Today, beginning at
Emerson also announces it will host an in-person investor conference on
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the Company's ability to successfully complete on the terms and conditions contemplated, and the financial impact of, the proposed
.
(C) 2022 M2 COMMUNICATIONS, source