02.09.23
Emerson reported results for its first quarter ended Dec. 31, 2022 and updated its full year outlook for fiscal 2023, which are presented on a continuing operations basis. Net sales were $3.4 billion, up 7% from the year prior; underlying sales were up 6%.
“Emerson continues to execute on the strategy we presented at our November 29th Investor Conference,” said Lal Karsanbhai, Emerson president and CEO. “Continued strength in our end markets and operational excellence, enabled by our Emerson Management System, resulted in a great start to 2023. We delivered underlying sales growth of 6% and strong segment margin expansion with operational leverage above our targets.
“Emerson remains committed to disciplined capital allocation and shareholder return, completing $2 billion of share repurchase in the first quarter,” Karsanbhai continued. “We continue to actively pursue opportunities to deploy capital effectively, including our proposal to acquire National Instruments (NI) for $53 per share, a unique value creation opportunity for Emerson and NI shareholders. Lastly, following a comprehensive review, we selected St. Louis, Missouri as our headquarters and are working to identify an appropriate location in the area.”
Underlying orders were up 5%. Net sales were up 7% for the quarter and underlying sales were up 6%. The Americas were up 13%, Europe was down 2%, and Asia, Middle East & Africa was flat. Pretax margin was 12.5% for the quarter, down 1730 basis points. Adjusted segment EBITA margin4 was 22.7%, up 130 basis points.
Operating cash flow was $302 million for the quarter, down 20%, and free cash flow was $243 million, down 20%. Cash flow results reflected higher working capital versus prior year.
“Emerson continues to execute on the strategy we presented at our November 29th Investor Conference,” said Lal Karsanbhai, Emerson president and CEO. “Continued strength in our end markets and operational excellence, enabled by our Emerson Management System, resulted in a great start to 2023. We delivered underlying sales growth of 6% and strong segment margin expansion with operational leverage above our targets.
“Emerson remains committed to disciplined capital allocation and shareholder return, completing $2 billion of share repurchase in the first quarter,” Karsanbhai continued. “We continue to actively pursue opportunities to deploy capital effectively, including our proposal to acquire National Instruments (NI) for $53 per share, a unique value creation opportunity for Emerson and NI shareholders. Lastly, following a comprehensive review, we selected St. Louis, Missouri as our headquarters and are working to identify an appropriate location in the area.”
Underlying orders were up 5%. Net sales were up 7% for the quarter and underlying sales were up 6%. The Americas were up 13%, Europe was down 2%, and Asia, Middle East & Africa was flat. Pretax margin was 12.5% for the quarter, down 1730 basis points. Adjusted segment EBITA margin4 was 22.7%, up 130 basis points.
Operating cash flow was $302 million for the quarter, down 20%, and free cash flow was $243 million, down 20%. Cash flow results reflected higher working capital versus prior year.