EVERETT - Fortive Corporation ('Fortive') (NYSE: FTV) today announced financial results for the second quarter 2023.
For the second quarter, net earnings were $209 million. For the same period, adjusted net earnings were $303 million. Diluted net earnings per share for the second quarter was $0.59. For the same period, adjusted diluted net earnings per share was $0.85.
For the second quarter, revenues increased 4.3% year-over-year to $1.53 billion, which included core revenue growth of 5.5%.
James A. Lico, President and Chief Executive Officer, stated, 'Our second quarter results once again demonstrated the quality of our portfolio and strength of our execution, yielding 5.5% core growth and record margins in the second quarter driven by strength in Precision Technologies, coupled with recovery in healthcare and momentum in our software and services businesses. Our continued success builds on our culture of continuous improvement and dedication to FBS, which is enabling our teams to relentlessly execute for customers and drive outperformance for Fortive.'
For the third quarter of 2023, Fortive anticipates revenue of approximately $1.5 billion, diluted net earnings per share of $0.59 to $0.62 and adjusted diluted net earnings per share of $0.82 to $0.85.
For the full year 2023, Fortive anticipates revenue of approximately $6.1 billion, diluted net earnings per share of $2.38 to $2.44, and adjusted diluted net earnings per share of $3.36 to $3.42.
Mr. Lico continued, 'Our leading positions in customers' critical connected workflows are benefiting from strong, multi-year secular growth trends, which coupled with the progression to more recurring revenue, is enabling more durable core growth through-cycle. Our differentiated culture and operational capability is expected to continue to yield strong incremental margins, powering our value creation flywheel and allowing Fortive to target mid-teens compounded earnings and free cash flow growth for years to come.'
ABOUT FORTIVE
Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive's strategic segments - Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions - include well-known brands with leading positions in their markets. The company's businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company's operating model is the Fortive Business System.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references 'adjusted net earnings,' 'adjusted diluted net earnings per share,' 'adjusted operating profit margin,' 'free cash flow,' and 'core revenue growth,' which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Fortive in this release may be different from similarly-titled non-GAAP measures used by other companies.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical, including statements regarding anticipated financial results, business and acquisition opportunities, economic conditions, industry trends, future prospects, shareholder value, and any other statements identified by their use of words like 'anticipate,' 'expect,' 'believe,' 'outlook,' 'guidance,' or 'will' or other words of similar meaning are 'forward-looking' statements within the meaning of the federal securities laws. These factors include, among other things: deterioration of or instability in the economy, the markets we serve, international trade policies, the condition of the financial markets and the banking systems, the spread of, and the future resurgence of COVID-19, our ability to adjust purchases, supply chain management, and manufacturing capacity to reflect market conditions and customer demand, reliance on sole sources of supply, changes in relations with China, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations, including our cost of debt, on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, risk related to tax treatment of the separation of Vontier, impact of our indemnification obligation to Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2022. These forward-looking statements speak only as of the date of this release, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
Contact:
Elena Rosman
Tel: (425) 446-5000
FORTIVE CORPORATION 
