08.10.22
Emerson reported results for its third fiscal quarter ended June 30, 2022 and updated its full year outlook for fiscal 2022.
June trailing three-month underlying orders were up 10%. Third quarter net sales were up 7% to $5 billion and underlying sales were up 7%. By geography, the Americas were up 14%, Europe was flat and Asia, Middle East & Africa was down 1%. China was down 6%, primarily due to COVID-19 lockdowns.
Operating cash flow was $740 million for the quarter, down 33%, and free cash flow was $630 million, down 36%.
“Emerson delivered another strong quarter as we continue to see double-digit growth in underlying orders and strong demand for our technology, software and solutions,” said Lal Karsanbhai, Emerson president and CEO. “Portfolio actions, including AspenTech, which increased our adjusted earnings per share for the quarter by 8 cents, are delivering immediate value to customers and shareholders. The strength in demand and continued growth in backlog provides confidence to execute our plan despite COVID-19 lockdowns in China and continued global supply chain constraints, specifically with electronic components, which impacted our sales conversion this quarter.
“We have made significant progress on our portfolio journey this year,” Karsanbhai continued. “These actions, including yesterday's announced agreement to sell InSinkErator, represent Emerson's continued commitment to creating a higher growth, more diversified and cohesive portfolio.”
June trailing three-month underlying orders were up 10%. Third quarter net sales were up 7% to $5 billion and underlying sales were up 7%. By geography, the Americas were up 14%, Europe was flat and Asia, Middle East & Africa was down 1%. China was down 6%, primarily due to COVID-19 lockdowns.
Operating cash flow was $740 million for the quarter, down 33%, and free cash flow was $630 million, down 36%.
“Emerson delivered another strong quarter as we continue to see double-digit growth in underlying orders and strong demand for our technology, software and solutions,” said Lal Karsanbhai, Emerson president and CEO. “Portfolio actions, including AspenTech, which increased our adjusted earnings per share for the quarter by 8 cents, are delivering immediate value to customers and shareholders. The strength in demand and continued growth in backlog provides confidence to execute our plan despite COVID-19 lockdowns in China and continued global supply chain constraints, specifically with electronic components, which impacted our sales conversion this quarter.
“We have made significant progress on our portfolio journey this year,” Karsanbhai continued. “These actions, including yesterday's announced agreement to sell InSinkErator, represent Emerson's continued commitment to creating a higher growth, more diversified and cohesive portfolio.”