Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

EMERSON ELECTRIC CO.

(EMR)
  Report
Real-time Estimate Cboe BZX  -  02:43 2022-10-05 pm EDT
79.83 USD   +2.02%
09:13aETF Preview: ETFs, Futures Decline Pre-Bell After Private Payroll, Trade Deficit Reports
MT
04:21aBlackstone Reportedly in Talks to Buy Part of Emerson Electric's Commercial, Residential Offerings Business
MT
10/04Blackstone in Talks to Buy Assets From Emerson Electric, Bloomberg Reports
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Emerson Reports Third Quarter 2022 Results | Emerson US

08/10/2022 | 04:39am EDT

ST. LOUIS -- Emerson (NYSE: EMR) today reported results for its third fiscal quarter ended June 30, 2022 and updated its full year outlook for fiscal 2022.

June trailing three-month underlying orders were up 10 percent. Third quarter net sales were up 7 percent and underlying sales were up 7 percent. By geography, the Americas were up 14 percent, Europe was flat and Asia, Middle East & Africa was down 1 percent. China was down 6 percent, primarily due to COVID-19 lockdowns.

Third quarter pretax margin of 23.9 percent was up 720 basis points. Adjusted EBITA margin4 was 22.8 percent, up 270 basis points.

Earnings per share were $1.54 for the quarter, up 48 percent. Adjusted earnings per share were $1.38, up 16 percent, which includes an $0.08 net AspenTech impact.

Operating cash flow was $740 million for the quarter, down 33 percent, and free cash flow was $630 million, down 36 percent. Cash flow results reflected higher working capital due to increased sales and continued supply chain constraints.

"Emerson delivered another strong quarter as we continue to see double-digit growth in underlying orders and strong demand for our technology, software and solutions," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Portfolio actions, including AspenTech which increased our adjusted earnings per share for the quarter by 8 cents, are delivering immediate value to customers and shareholders. The strength in demand and continued growth in backlog provides confidence to execute our plan despite COVID-19 lockdowns in China and continued global supply chain constraints, specifically with electronic components, which impacted our sales conversion this quarter."

"We have made significant progress on our portfolio journey this year," Karsanbhai continued. "These actions, including yesterday's announced agreement to sell InSinkErator, represent Emerson's continued commitment to creating a higher growth, more diversified and cohesive portfolio."Portfolio Progress

Earlier this week, Emerson announced it has reached an agreement to sell the InSinkErator® business to Whirlpool Corporation for $3.0 billion. More details on the transaction can be found in our Form 8-K filed Aug. 8, 2022.

On May 16, Emerson closed its transaction with AspenTech creating a global software leader positioned to advance customers' sustainability and operational excellence goals, and a platform to deploy M&A capital. AspenTech's July agreement to acquire end-to-end mining software provider, Micromine, is an example of this increased flexibility.

In the third quarter, Emerson also closed the divestiture of Therm-O-Disc and acquired Fluxa, a life sciences process knowledge management leader.Business Platform Results

Automation Solutions5 June trailing three-month underlying orders were up 13 percent and backlog increased $100 million compared to the prior quarter to $6.2 billion despite $132 million of debooking in Russia.

Net sales were flat in the quarter, with underlying sales up 4 percent. The Americas were up 12 percent, Europe was down 2 percent and Asia, Middle East & Africa was down 3 percent. China was down 2 percent.

Segment EBIT margin increased 40 basis points to 18.5 percent and adjusted segment EBITA6 margin increased 70 basis points to 21.0 percent.

Commercial & Residential Solutions June trailing three-month underlying orders were up 5 percent and backlog decreased $100 million compared to the prior quarter to $1.3 billion and was flat excluding the impact of the Therm-O-Disc divestiture.

Net sales increased 8 percent in the quarter, with underlying sales up 13 percent. The Americas were up 16 percent, Europe was up 6 percent and Asia, Middle East & Africa was up 5 percent. China was down 18 percent.

Segment EBIT margin increased 10 basis points to 21.4 percent and adjusted segment EBITA margin decreased 50 basis points to 22.0 percent.

Aspentech7 net sales were $239 million for the quarter. Segment EBIT margin was 23.7 percent and adjusted segment EBITA margin was 53.8 percent.2022 Updated Outlook

Emerson updated its 2022 full year outlook to reflect the impacts of the AspenTech and Therm-O-Disc transactions, and write-offs associated with its announced Russia exit while considering continued macroeconomic and geopolitical uncertainty, supply chain constraints, exchange rate fluctuations and challenges related to COVID-19. Net sales guidance is reduced to 7 to 8 percent and underlying sales guidance is narrowed to 9 to 10 percent. Earnings per share guidance is increased to $5.25 to $5.35 and adjusted earnings per share guidance is increased to $5.05 to $5.15. Operating cash flow is now expected to be $3.0 billion due to higher working capital from increased sales and continued supply chain constraints. Capital spending was reduced to approximately $525 million and free cash flow is now expected to be $2.5 billion. Share repurchase is expected to be approximately $500 million.

The following tables summarize the updated fiscal year 2022 guidance framework. All figures are approximate. 2022 Guidance

Net Sales Growth

7%-8%

Operating Cash Flow

$3.0B

Automation Solutions

4%-5%

Capital Spend

$525M

Commercial & Residential Solutions

9%-10%

Free Cash Flow

$2.5B

Dividend

$1.2B

Underlying Sales Growth

9%-10%

Share Repurchase

$500M

Automation Solutions

6%-7%

Commercial & Residential Solutions

13%-14%

Tax Rate

22%

Restructuring Actions

$150M

GAAP EPS

$5.25-$5.35

ADJUSTED EPS

$5.05-$5.15

1 Trailing three-month underlying orders does not include heritage AspenTech, Therm-O-Disc (divested and previously reported in Commercial & Residential Solutions) or Emerson's contributed businesses to AspenTech (previously reported in Automation Solutions).

2 Underlying sales excludes the impact of acquisitions, divestitures, currency translation, heritage AspenTech, Therm-O-Disc and Emerson's contributed businesses to AspenTech.

3 Adjusted EPS excludes restructuring, first year purchase accounting charges, transaction and AspenTech pre-closing costs, a gain from the Therm-O-Disc divestiture, write-offs associated with Emerson's announced Russia exit and intangibles amortization expense.

4 Adjusted EBITA margin excludes restructuring, first year purchase accounting charges, transaction costs, a gain from the Therm-O-Disc divestiture, write-offs associated with Emerson's announced Russia exit and intangibles amortization expense.

5 Automation Solutions net sales, backlog, segment EBIT margin and adjusted segment EBITA margin does not include Emerson's contributed businesses to AspenTech, which have been reclassified to the AspenTech segment.

6 Adjusted segment EBITA margin excludes restructuring and intangible amortization expense.

7 The AspenTech segment includes the full quarter results for Emerson's businesses contributed to AspenTech and the heritage AspenTech business as of May 16, 2022.Upcoming Investor Events

Today, beginning at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time, Emerson management will discuss the third quarter results during an investor conference call. Participants can access a live webcast available at www.emerson.com/financial at the time of the call. A replay of the call will be available for 90 days. Conference call slides will be posted in advance of the call on the company website.

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 sale of its InSinkErator food waste disposal business, the financial impact of the AspenTech acquisition, the scope, duration and ultimate impacts of the COVID-19 pandemic and the Russia-Ukraine conflict, as well as economic and currency conditions, market demand, including related to the pandemic and oil and gas price declines and volatility, pricing, protection of intellectual property, cybersecurity, tariffs, competitive and technological factors, inflation, among others, as set forth in the Company's most recent Annual Report on Form 10-K and subsequent reports filed with the SEC. The outlook contained herein represents the Company's expectation for its consolidated results, other than as noted herein.

.

(C) 2022 M2 COMMUNICATIONS, source M2 PressWIRE

All news about EMERSON ELECTRIC CO.
09:13aETF Preview: ETFs, Futures Decline Pre-Bell After Private Payroll, Trade Def..
MT
04:21aBlackstone Reportedly in Talks to Buy Part of Emerson Electric's Commercial, Residentia..
MT
10/04Blackstone in Talks to Buy Assets From Emerson Electric, Bloomberg Reports
DJ
10/04Blackstone in talks to buy Emerson's assets for up to $10 billion - Bloomberg News
RE
10/04Blackstone Reportedly in Talks to Acquire Select Emerson Assets
CI
10/04Emerson - Colgate-Palmolive Pursues Net Zero Carbon Target with Emerson's Smart Sensor ..
AQ
10/04Emerson Electric : Colgate-Palmolive Pursues Net Zero Carbon Target with Emerson's Smart S..
PU
10/03Barclays Adjusts Emerson Electric's Price Target to $80 From $82, Keeps Equalweight Rat..
MT
10/01Emerson Electric : Colgate-Palmolive Pursues Net Zero Carbon Target with Emerson's Smart S..
PU
10/01Plantweb™ Digital Ecosystem : The Key to Your Sustainability Goals
PU
More news
Analyst Recommendations on EMERSON ELECTRIC CO.
More recommendations
Financials (USD)
Sales 2022 19 582 M - -
Net income 2022 3 108 M - -
Net Debt 2022 8 042 M - -
P/E ratio 2022 14,9x
Yield 2022 2,64%
Capitalization 46 269 M 46 269 M -
EV / Sales 2022 2,77x
EV / Sales 2023 2,52x
Nbr of Employees 86 700
Free-Float 61,6%
Chart EMERSON ELECTRIC CO.
Duration : Period :
Emerson Electric Co. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EMERSON ELECTRIC CO.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Last Close Price 78,25 $
Average target price 102,63 $
Spread / Average Target 31,2%
EPS Revisions
Managers and Directors
Surendralal L Karsanbhai President, Chief Executive Officer & Director
Frank J. Dellaquila Chief Financial Officer & Senior Executive VP
James S. Turley Chairman
Jake Fritz Chief Information Officer & Vice President
Ram R. Krishnan President-Asia Climate Technologies
Sector and Competitors
1st jan.Capi. (M$)
EMERSON ELECTRIC CO.-15.83%46 269
KEYENCE CORPORATION-30.48%84 400
SCHNEIDER ELECTRIC SE-28.11%68 590
EATON CORPORATION PLC-16.98%57 148
NIDEC CORPORATION-37.60%33 583
AMETEK, INC.-20.06%27 807