05.06.22
Emerson reported results for its second fiscal quarter ended March 31, 2022 and updated its full year outlook for fiscal 2022.
Second quarter 2022 net sales were up 8% to $4.8 billion, and underlying sales were up 10%. By geography, the Americas grew 14%, Europe grew 2% and Asia, Middle East & Africa grew 7%. China grew 11%.
Earnings per share were $1.13 for the quarter, up 22%. Earnings in the quarter benefited from leverage, continued savings from effective cost management and favorable mix despite the ongoing supply chain headwinds and inflationary pressures. Earnings included a tax benefit of 8 cents.
Operating cash flow was $442 million for the quarter, down 45%, and free cash flow was $333 million, down 53%. Cash flow results reflected mainly higher inventory due to supply chain constraints.
“Emerson continues to execute through a dynamic and challenging environment. In the second quarter, we delivered solid margins and drove 10% underlying sales growth and over 20% adjusted EPS growth. Our performance was indicative of strong end market demand and successful navigation through supply chain constraints and inflationary pressures,” said Lal Karsanbhai, Emerson president and CEO. “Despite ongoing uncertainty, our strong performance gives us confidence to increase our 2022 full year outlook.
“Today, Emerson is also announcing our decision to exit our Russia business and, as part of this exit, we are exploring strategic options to divest Metran, our Russia-based manufacturing subsidiary,” Karsanbhai continued. “We are committed to an orderly transfer of these assets and will support our employees through this process.”
Second quarter 2022 net sales were up 8% to $4.8 billion, and underlying sales were up 10%. By geography, the Americas grew 14%, Europe grew 2% and Asia, Middle East & Africa grew 7%. China grew 11%.
Earnings per share were $1.13 for the quarter, up 22%. Earnings in the quarter benefited from leverage, continued savings from effective cost management and favorable mix despite the ongoing supply chain headwinds and inflationary pressures. Earnings included a tax benefit of 8 cents.
Operating cash flow was $442 million for the quarter, down 45%, and free cash flow was $333 million, down 53%. Cash flow results reflected mainly higher inventory due to supply chain constraints.
“Emerson continues to execute through a dynamic and challenging environment. In the second quarter, we delivered solid margins and drove 10% underlying sales growth and over 20% adjusted EPS growth. Our performance was indicative of strong end market demand and successful navigation through supply chain constraints and inflationary pressures,” said Lal Karsanbhai, Emerson president and CEO. “Despite ongoing uncertainty, our strong performance gives us confidence to increase our 2022 full year outlook.
“Today, Emerson is also announcing our decision to exit our Russia business and, as part of this exit, we are exploring strategic options to divest Metran, our Russia-based manufacturing subsidiary,” Karsanbhai continued. “We are committed to an orderly transfer of these assets and will support our employees through this process.”