Emerson Electric Co.
11/05/2024 | Press release | Distributed by Public on 11/05/2024 05:40
Q4 AND FULL YEAR EARNINGS RELEASE
ST. LOUIS (February 7, 2024) - Emerson (NYSE: EMR) today reported results1 for its first quarter ended December 31, 2023 and updated its full year outlook for fiscal 2024. Emerson also declared a quarterly cash dividend of $0.525 per share of common stock payable March 11, 2024 to stockholders of record on February 16, 2024.
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(dollars in millions, except per share)
|
2023 Q4 |
2024 Q4 |
Change |
2023 |
2024 |
Change |
|
|
Underlying Orders2 |
2% |
2% |
||||
|
Net Sales Underlying Sales3 |
$4,090 |
$4,619 |
13% 4% |
$15,165 |
$17,492 |
15% 6% |
|
Pretax Earnings Margin |
$1,020 24.9% |
$679 14.7% |
(1020) bps |
$2,903 19.1% |
$2,020 11.5% |
(760) bps |
|
Adjusted Segment EBITA4 Margin |
$1,045 25.5% |
$1,210 26.2% |
70 bps |
$3,794 25.0% |
$4,552 26.0% |
100 bps |
|
GAAP Earnings Per Share Adjusted Earnings Per Share5 |
$1.36 $1.29 |
$0.97 $1.48 |
(29)% 15% |
$3.96 $4.44 |
$2.82 $5.49 |
(29)% 24% |
|
Operating Cash Flow Free Cash Flow |
$991 $822 |
$1,073 $905 |
8% 10% |
$2,710 $2,347 |
$3,317 $2,898 |
22% 23% |
Management Commentary
"Emerson's first quarter results exceeded expectations in key financial metrics including underlying sales, operating leverage and adjusted earnings per share," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Our strong start to the year, continued focus on execution, and resilient process and hybrid demand provide the confidence to update our 2024 outlook."
Karsanbhai continued, "NI, now referred to as Test & Measurement, started the year strong delivering robust sales and margins. We have increased and accelerated our synergy plan in Test & Measurement and remain focused on creating value."
2024 Outlook
The following tables summarize the fiscal year 2024 guidance framework. The 2024 outlook assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.
|
2024 Q2 |
2024 |
|
|
Net Sales Growth |
12.5% - 14.5% |
14.5% - 17.0% |
|
Earnings Per Share
Amortization of Intangibles Adjusted Earnings Per Share |
$0.68 - $0.72
~$0.35 $1.22 - $1.26 |
$2.80 - $2.95
~$1.42 $5.30 - $5.45 |
|
Operating Cash Flow |
$3.0B - $3.1B |
Notes:
1 Results are presented on a continuing operations basis.
2 Underlying orders does not include AspenTech.
3 Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures.
4 Adjusted segment EBITA represents segment earnings less restructuring and intangibles amortization expense.
5 Adjusted EPS excludes intangibles amortization expense, restructuring and related costs, the income/loss of Emerson's 40% share of Copeland, the amortization of acquisition-related inventory step-up, acquisition/divestiture fees and related costs, discrete tax benefits, an AspenTech Micromine purchase price hedge, and write-offs associated with Emerson's Russia exit.
Conference Call
Today, beginning at 8:00 a.m. Central Time / 9:00 a.m. Eastern Time, Emerson management will discuss the first quarter results during an investor conference call. Participants can access a live webcast available at www.emerson.com/investors 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.
About Emerson
Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.
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 scope, duration and ultimate impacts of the Russia-Ukraine and other global conflicts, as well as economic and currency conditions, market demand, 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.
Emerson uses our Investor Relations website, www.Emerson.com/investors, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts and social media. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Contacts
Investors
Colleen Mettler
314-553-2197
Media
Joseph Sala / Greg Klassen
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
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