艾默生公布2024年第三季度业绩;更新2024年展望

(dollars in millions, except per share)

2023 Q3

2024 Q3

Change

Underlying Orders²

3 %

Net Sales

$3,946

$4,380

11 %

Underlying Sales³

3 %

Pretax Earnings

$822

$455

Margin

20.8 %

10.4 %

(1040) bps

Adjusted Segment EBITA⁴

$1,060

$1,189

Margin

26.9 %

27.1 %

20 bps

GAAP Earnings Per Share

$1.12

$0.60

(46) %

Adjusted Earnings Per Share⁵

$1.29

$1.43

11 %

Operating Cash Flow

$842

$1,067

27 %

Free Cash Flow

$769

$975

27 %

2024

Net Sales Growth

~15%

Underlying Sales Growth

~6%

Earnings Per Share

$2.82 - $2.87

Amortization of Intangibles

~$1.42

Restructuring and Related Costs

~$0.34

Loss on Copeland Note Receivable

$0.38

Amortization of Acquisition-related Inventory Step-up

$0.38

Acquisition / Divestiture Fees and Related Costs

~$0.24

Divestiture Loss / (Gain), net

($0.03)

Discrete Tax Benefits

($0.10)

Adjusted Earnings Per Share

$5.45 - $5.50

Operating Cash Flow

~$3.2B

Free Cash Flow

~$2.8B

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 amortization of acquisition-related inventory step-up, acquisition/divestiture gains, losses, fees and related costs, discrete tax benefits, an AspenTech Micromine purchase price hedge and write-offs associated with Emerson's Russia exit.

⁶ With the June 6, 2024 definitive agreement to completely exit its remaining interests in the Copeland joint venture, Emerson will report financial results for the Copeland equity ownership as discontinued operations for all periods presented, beginning in Q3 2024. The earnings from discontinued operations for 2024 are expected to be $0.55 to $0.60 per share, including the after-tax gain on the equity stake in Copeland. The Copeland Note Receivable interest income through June 6, 2024 remains in continuing operations. The pretax loss on the sale of the note receivable, $279M ($217M after-tax), is also reported in continuing operations but excluded from adjusted earnings per share, ($0.38).

Investors:

Media:

Colleen Mettler

Joseph Sala / Greg Klassen

(314) 553-2197

Joele Frank, Wilkinson Brimmer Katcher

(212) 355-4449

Table 1

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

Quarter Ended

June 30,

Nine Months Ended

June 30,

2023

2024

2023

2024

Net sales

$   3,946

$   4,380

$ 11,075

$ 12,873

     Cost of sales

1,952

2,066

5,660

6,359

     SG&A expenses

1,042

1,254

3,072

3,827

     Gain on subordinated interest

—

—

—

(79)

     Loss on Copeland note receivable

—

279

—

279

     Other deductions, net

130

294

359

1,075

     Interest expense, net

10

56

111

157

     Interest income from related party¹

(10)

(24)

(10)

(86)

Earnings from continuing operations before income taxes

822

455

1,883

1,341

Income taxes

168

88

400

266

Earnings from continuing operations

654

367

1,483

1,075

Discontinued operations, net of tax

8,712

(15)

10,979

(88)

Net earnings

9,366

352

12,462

987

Less: Noncontrolling interests in subsidiaries

14

23

(13)

15

Net earnings common stockholders

$   9,352

$      329

$ 12,475

$      972

Earnings common stockholders

Earnings from continuing operations

$      643

$      344

$   1,502

$   1,060

Discontinued operations

8,709

(15)

10,973

(88)

Net earnings common stockholders

$   9,352

$      329

$ 12,475

$      972

Diluted avg. shares outstanding

574.0

574.8

578.1

574.1

Diluted earnings per share common stockholders

Earnings from continuing operations

$1.12

$0.60

$2.60

$1.84

Discontinued operations

15.16

(0.03)

18.96

(0.15)

Diluted earnings per common share

$16.28

$0.57

$21.56

$1.69

Quarter Ended

June 30,

Nine Months Ended

June 30,

2023

2024

2023

2024

Other deductions, net

     Amortization of intangibles

$120

$264

$357

$811

     Restructuring costs

12

57

41

170

     Other

(2)

(27)

(39)

94

          Total

$130

$294

$359

$1,075

¹ Represents interest on the Copeland note receivable through June 6, 2024.

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

Sept 30, 2023

June 30, 2024

Assets

     Cash and equivalents

$             8,051

$             2,298

     Receivables, net

2,518

2,761

     Inventories

2,006

2,303

     Other current assets

1,244

1,458

Total current assets

13,819

8,820

     Property, plant & equipment, net

2,363

2,688

     Goodwill

14,480

17,936

     Other intangible assets

6,263

10,627

     Copeland note receivable and equity investment held-for-sale

3,255

2,908

     Other

2,566

2,606

Total assets

$           42,746

$           45,585

Liabilities and equity

     Short-term borrowings and current maturities of long-term debt

$               547

$             2,991

     Accounts payable

1,275

1,251

     Accrued expenses

3,210

3,350

Total current liabilities

5,032

7,592

     Long-term debt

7,610

7,111

     Other liabilities

3,506

4,194

Equity

     Common stockholders' equity

20,689

20,799

     Noncontrolling interests in subsidiaries

5,909

5,889

Total equity

26,598

26,688

Total liabilities and equity

$           42,746

$           45,585

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

Nine Months Ended June 30,

2023

2024

Operating activities

Net earnings

$          12,462

$              987

Earnings from discontinued operations, net of tax

(10,979)

88

Adjustments to reconcile net earnings to net cash provided by operating activities:

        Depreciation and amortization

780

1,263

        Stock compensation

198

203

        Amortization of acquisition-related inventory step-up

—

231

        Gain on subordinated interest

—

(79)

        Loss on Copeland note receivable

—

279

        Changes in operating working capital

(359)

(176)

        Other, net

(383)

(552)

            Cash from continuing operations

1,719

2,244

            Cash from discontinued operations

(439)

4

            Cash provided by operating activities

1,280

2,248

Investing activities

Capital expenditures

(194)

(251)

Purchases of businesses, net of cash and equivalents acquired

—

(8,342)

Proceeds from subordinated interest

15

79

Proceeds from related party note receivable

918

—

Other, net

(124)

(86)

    Cash from continuing operations

615

(8,600)

    Cash from discontinued operations

12,485

36

    Cash provided by (used in) investing activities

13,100

(8,564)

Financing activities

Net increase (decrease) in short-term borrowings

(1,476)

2,229

Proceeds from short-term borrowings greater than three months

395

322

Payments of short-term borrowings greater than three months

(400)

(100)

Payments of long-term debt

(744)

(547)

Dividends paid

(900)

(901)

Purchases of common stock

(2,000)

(175)

AspenTech purchases of common stock

(100)

(188)

Payment of related party note payable

(918)

—

Other, net

(159)

(57)

    Cash provided by (used in) financing activities

Effect of exchange rate changes on cash and equivalents

75

(20)

Increase (decrease) in cash and equivalents

8,153

(5,753)

Beginning cash and equivalents

1,804

8,051

Ending cash and equivalents

$            9,957

$           2,298

Table 4

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)

The following tables show results for the Company's segments on an adjusted segment EBITA basis and are intended to

supplement the Company's results of operations, including its segment earnings which are defined as earnings before

interest and taxes. The Company defines adjusted segment and total segment EBITA as segment earnings excluding

intangibles amortization expense, and restructuring and related expense. Adjusted segment and total segment EBITA,

and adjusted segment and total segment EBITA margin are measures used by management and may be useful for

investors to evaluate the Company's segments' operational performance.

Quarter Ended June 30,

2023

2024

Reported

Underlying

Sales

Final Control

$           1,035

$           1,046

1 %

2 %

Measurement & Analytical

913

982

8 %

9 %

Discrete Automation

668

618

(8) %

(6) %

Safety & Productivity

363

351

(3) %

(3) %

Intelligent Devices

$           2,979

$           2,997

1 %

2 %

Control Systems & Software

663

700

6 %

7 %

Test & Measurement

—

355

AspenTech

320

343

7 %

7 %

Software and Control

$              983

$           1,398

42 %

7 %

Eliminations

(16)

(15)

Total

$           3,946

$           4,380

11 %

3 %

Sales Growth by Geography

Quarter Ended

June 30,

Americas

3 %

Europe

4 %

Asia, Middle East & Africa

2 %

Table 4 cont.

Nine Months Ended June 30,

2023

2024

Reported

Underlying

Sales

Final Control

$           2,889

$           3,037

5 %

6 %

Measurement & Analytical

2,550

2,942

15 %

17 %

Discrete Automation

1,969

1,863

(5) %

(5) %

Safety & Productivity

1,034

1,038

— %

— %

Intelligent Devices

$           8,442

$           8,880

5 %

6 %

Control Systems & Software

1,892

2,062

9 %

10 %

Test & Measurement

—

1,104

AspenTech

793

878

11 %

11 %

Software and Control

$           2,685

$           4,044

51 %

10 %

Eliminations

(52)

(51)

Total

$         11,075

$         12,873

16 %

7 %

Sales Growth by Geography

Nine Months Ended

June 30,

Americas

5 %

Europe

9 %

Asia, Middle East & Africa

9 %

Table 4 cont.

Quarter Ended June 30,

Quarter Ended June 30,

2023

2024

As Reported

(GAAP)

Adjusted

EBITA

(Non-GAAP)

As

Reported

(GAAP)

Adjusted

EBITA

(Non-GAAP)

Earnings

Final Control

$          245

$          266

$          253

$          279

 Margins

23.7 %

25.7 %

24.2 %

26.8 %

Measurement & Analytical

257

263

252

266

 Margins

28.1 %

28.7 %

25.6 %

27.0 %

Discrete Automation

124

144

109

134

 Margins

18.5 %

21.4 %

17.6 %

21.5 %

Safety & Productivity

82

88

79

86

 Margins

22.7 %

24.3 %

22.5 %

24.7 %

Intelligent Devices

$          708

$          761

$          693

$          765

 Margins

23.7 %

25.5 %

23.1 %

25.5 %

Control Systems & Software

144

151

168

178

 Margins

21.8 %

22.8 %

23.9 %

25.2 %

Test & Measurement

—

—

(88)

76

 Margins

(24.7) %

21.4 %

AspenTech

27

148

49

170

 Margins

8.2 %

46.1 %

14.5 %

50.0 %

Software and Control

$          171

$          299

$          129

$          424

 Margins

17.4 %

30.4 %

9.2 %

30.3 %

Corporate items and interest expense, net:

Stock compensation

(56)

(56)

(56)

(47)

Unallocated pension and postretirement costs

42

42

38

38

Corporate and other

(43)

(19)

(38)

(24)

Gain on subordinated interest

—

—

—

—

Loss on Copeland note receivable

—

—

(279)

—

Interest expense, net

(10)

—

(56)

—

Interest income from related party¹

10

—

24

—

Pretax Earnings / Adjusted EBITA

$          822

$        1,027

$          455

$        1,156

 Margins

20.8 %

26.0 %

10.4 %

26.4 %

Supplemental Total Segment Earnings:

Adjusted Total Segment EBITA

$        1,060

$        1,189

 Margins

26.9 %

27.1 %

¹ Represents interest on the Copeland note receivable through June 6, 2024.

Table 4 cont.

Quarter Ended June 30,

Quarter Ended June 30,

2023

2024

Amortization of

Intangibles¹

Restructuring

and

Related Costs²

Amortization of

Intangibles¹

Restructuring

and

Related Costs²

Final Control

$                   22

$                    (1)

$                   21

$                     5

Measurement & Analytical

5

1

11

3

Discrete Automation

8

12

9

16

Safety & Productivity

7

(1)

6

1

Intelligent Devices

$                   42

$                   11

$                   47

$                   25

Control Systems & Software

6

1

6

4

Test & Measurement

—

—

139

25

AspenTech

121

—

121

—

Software and Control

$                 127

$                     1

$                 266

$                   29

Corporate

—

1

—

6

³

Total

$                 169

$                   13

$                 313

$                   60

¹ Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended June 30, 2023 and 2024, respectively.

² Restructuring and related costs includes $1 and $3 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2023 and 2024, respectively.

³ Corporate restructuring of $6 for the three months ended June 30, 2024 includes $5 related to integration-related stock compensation expense attributable to NI.

Quarter Ended June 30,

Depreciation and Amortization

2023

2024

Final Control

$                39

$                41

Measurement & Analytical

26

32

Discrete Automation

20

22

Safety & Productivity

15

14

Intelligent Devices

100

109

Control Systems & Software

22

26

Test & Measurement

—

150

AspenTech

123

122

Software and Control

145

298

Corporate

12

10

Total

$              257

$              417

Table 5

EMERSON AND SUBSIDIARIES

ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL

(DOLLARS IN MILLIONS, UNAUDITED)

The following table shows the Company's stock compensation and corporate and other expenses on an adjusted basis. The Company's definition of adjusted stock compensation excludes integration-related stock compensation expense. The Company's definition of adjusted corporate and other excludes corporate restructuring and related costs, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. This metric is useful for reconciling from total adjusted segment EBITA to the Company's consolidated adjusted EBITA.

Quarter Ended June 30,

2023

2024

 Stock compensation (GAAP)

$                  (56)

$                  (56)

 Integration-related stock compensation expense

—

9

¹

 Adjusted stock compensation (non-GAAP)

$                  (56)

$                  (47)

Quarter Ended June 30,

2023

2024

 Corporate and other (GAAP)

$                  (43)

$                  (38)

 Corporate restructuring and related costs

1

1

 Acquisition / divestiture costs

38

13

 National Instruments investment gain

(12)

—

 AspenTech Micromine purchase price hedge

(3)

—

 Adjusted corporate and other (non-GAAP)

$                  (19)

$                  (24)

¹ Integration-related stock compensation expense relates to NI and includes $5 reported as restructuring costs.

The following tables, which show results on an adjusted EBITA basis and diluted earnings per share on an adjusted basis, are intended to supplement the Company's discussion of its results of operations herein. The Company defines adjusted EBITA as earnings excluding interest expense, net, income taxes, intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction fees, and certain gains, losses or impairments. Adjusted earnings per share excludes intangibles amortization expense, restructuring expense, first year purchase accounting related items and transaction-related costs, and certain gains, losses or impairments. Adjusted EBITA, adjusted EBITA margin, and adjusted earnings per share are measures used by management and may be useful for investors to evaluate the Company's operational performance.

Quarter Ended June 30,

2023

2024

Pretax earnings

$             822

$             455

Percent of sales

20.8 %

10.4 %

Interest expense, net

10

56

Interest income from related party¹

(10)

(24)

Amortization of intangibles

169

313

Restructuring and related costs

13

60

Acquisition/divestiture fees and related costs

38

17

National Instruments investment gain

(12)

—

AspenTech Micromine purchase price hedge

(3)

—

Loss on Copeland note receivable

—

279

Adjusted EBITA

$          1,027

$          1,156

Percent of sales

26.0 %

26.4 %

Quarter Ended June 30,

2023

2024

GAAP earnings from continuing operations per share

$            1.12

$            0.60

Amortization of intangibles

0.15

0.35

Restructuring and related costs

0.02

0.08

Acquisition/divestiture fees and related costs

0.07

0.02

National Instruments investment gain

(0.02)

—

Interest income on undeployed proceeds from Copeland transaction

(0.05)

—

Loss on Copeland note receivable

—

0.38

Adjusted earnings from continuing operations per share

$            1.29

$            1.43

Less: AspenTech contribution to adjusted earnings per share

(0.11)

(0.14)

Adjusted earnings per share excluding AspenTech contribution

$            1.18

$            1.29

¹ Represents interest on the Copeland note receivable through June 6, 2024.

Table 6 cont.

Quarter Ended June 30, 2024

Pretax

Earnings

Income

Taxes

Earnings from

Cont.

Ops.

Non-Controlling

Interests³

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

Share

As reported (GAAP)

$         455

$           88

$         367

$           23

$            344

$        0.60

Amortization of intangibles

313

¹

74

239

40

199

0.35

Restructuring and related costs

60

²

14

46

—

46

0.08

Acquisition/divestiture fees and related costs

17

2

15

—

15

0.02

Loss on Copeland note receivable

279

62

217

—

217

0.38

Adjusted (non-GAAP)

$      1,124

$         240

$         884

$           63

$            821

$        1.43

Interest expense, net

56

Interest income from related party⁴

(24)

Adjusted EBITA (non-GAAP)

$      1,156

¹ Amortization of intangibles includes $49 reported in cost of sales.

² Restructuring and related costs includes $3 reported in cost of sales and selling, general and administrative expenses.

³ Represents the non-controlling interest in AspenTech applied to AspenTech's share of each adjustment presented herein and eliminated from Emerson's consolidated results.

⁴ Represents interest on the Copeland note receivable through June 6, 2024.

Table 7

EMERSON AND SUBSIDIARIES

ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

The following tables reconcile the financial results of AspenTech reported to its shareholders with the amounts included in Emerson's consolidated financial results. Emerson currently owns approximately 57 percent of the common shares outstanding of AspenTech, a separately traded public company (NASDAQ: AZPN), and consolidates AspenTech in its financial results. The 43 percent non-controlling interest in AspenTech is removed from Emerson's net earnings common stockholders through the non-controlling interest line item. AspenTech is also one of Emerson's segments and its GAAP segment earnings is reconciled below to its consolidated impact to clarify that certain items are reported outside of its segment earnings within Emerson corporate, including interest income and stock compensation. 

Quarter Ended June 30, 2024

Pretax

Earnings

Income

Taxes

(Benefit)

Earnings from

Cont.

Ops.

Non-Controlling

Interests⁴

Net

Earnings

Common

Stockholders

Diluted

Earnings

Per

Share

Standalone reporting (GAAP)

$           53

¹

$             8

$           45

 Other

(1)

(5)

4

Reported in Emerson consolidation (GAAP)

52

3

49

21

28

$        0.05

Adjustments:

Amortization of intangibles

121

²

27

94

40

54

0.09

Adjusted (Non-GAAP)

$         173

$           30

$         143

$           61

$             82

$        0.14

 Interest income

(14)

³

 Stock compensation

11

³

Adjusted segment EBITA (non-GAAP)

$         170

Reconciliation to Segment EBIT

Pre-tax earnings

$           52

Interest income

(14)

³

Stock compensation

11

³

Segment EBIT (GAAP)

$           49

Amortization of intangibles

121

²

Adjusted segment EBITA (non-GAAP)

$         170

¹ Amount reflects AspenTech's pretax earnings for the three months ended June 30, 2024 as reported in its quarterly earnings release 8-K.

² Amortization of intangibles includes $48 reported in cost of sales.

³ Reported in Emerson corporate line items.

⁴ Represents the non-controlling interest in AspenTech applied to each adjustment presented herein and eliminated from Emerson's consolidated results.

Reconciliations of Non-GAAP Financial Measures & Other

Table 8

Reconciliations of Non-GAAP measures with the most directly comparable GAAP measure (dollars in millions, except per share amounts). See

tables 4 through 7 for additional non-GAAP reconciliations.

2024 Q3 Underlying Sales Change

Reported

(Favorable) /

Unfavorable FX

(Acquisitions) /

Divestitures

Underlying

Final Control

1 %

1 %

— %

2 %

Measurement & Analytical

8 %