ST. LOUIS, May 8, 2024 /PRNewswire/ -- Emerson (NYSE:EMR) today reported results1 for its second quarter ended March 31, 2024 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 June 10, 2024 to stockholders of record on May 17, 2024. (dollars in millions, except per share) 2023 Q2 2024 Q2 Change Underlying Orders2 (1) % Net Sales $3,756 $4,376 17 % Underlying Sales3 8 % Pretax Earnings $639 $652 Margin 17.0 % 14.9 % (210) bps Adjusted Segment EBITA4 $924 $1,139 Margin 24.6 % 26.0 % 140 bps GAAP Earnings Per Share $0.92 $0.87 (5) % Adjusted Earnings Per Share5 $1.09 $1.36 25 % Operating Cash Flow $575 $757 32 % Free Cash Flow $513 $675 32 %   Management Commentary "Emerson's outstanding execution continued in the second quarter, with sales growth, margin expansion and earnings all exceeding expectations," said Emerson President and Chief Executive Officer Lal Karsanbhai. "Underlying orders met our low-single-digit growth expectations for the first half of fiscal 2024, supported by process and hybrid end markets. The strong performance and relentless focus on execution give us the confidence to update our full year 2024 outlook." Karsanbhai continued, "Our second quarter performance, especially our gross margin performance, demonstrates the strength of our transformed portfolio and our Emerson Management System. We are well positioned to continue delivering differentiated solutions to our customers and creating value for our shareholders." 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 Q3 2024 Net Sales Growth 11% - 12.5% 15% - 16% Underlying Sales Growth 3% - 4.5% 5.5% - 6.5% Earnings Per Share $0.92 - $0.96 $2.98 - $3.08 Amortization of Intangibles ~$0.36 ~$1.43 Restructuring and Related Costs ~$0.07 ~$0.32 Loss on Copeland Equity Method Investment ~$0.02 ~$0.19 Amortization of Acquisition-related Inventory Step-up --- $0.38 Acquisition / Divestiture Fees and Related Costs ~$0.01 ~$0.23 Divestiture Loss / (Gain), net --- ($0.03) Discrete Tax Benefits --- ($0.10) Adjusted Earnings Per Share $1.38 - $1.42 $5.40 - $5.50 Operating Cash Flow ~$3.1B Free Cash Flow ~$2.7B 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 gains, losses, 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 second 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. Investors: Media: Colleen Mettler Joseph Sala / Greg Klassen (314) 553-2197 Joele Frank, Wilkinson Brimmer Katcher (212) 355-4449 (tables attached)   Table 1 EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) Quarter Ended March 31, Six Months Ended March 31, 2023 2024 2023 2024 Net sales $   3,756 $   4,376 $   7,129 $   8,493      Cost of sales 1,955 2,092 3,708 4,293      SG&A expenses 1,000 1,296 2,030 2,573      Gain on subordinated interest — (79) — (79)      Other deductions, net 109 389 229 876      Interest expense, net 53 57 101 101      Interest income from related party1 — (31) — (62) Earnings from continuing operations before income taxes 639 652 1,061 791 Income taxes 134 149 232 156 Earnings from continuing operations 505 503 829 635 Discontinued operations, net of tax 265 — 2,267 — Net earnings 770 503 3,096 635 Less: Noncontrolling interests in subsidiaries (22) 2 (27) (8) Net earnings common stockholders $      792 $      501 $   3,123 $      643 Earnings common stockholders Earnings from continuing operations $      530 $      501 $      859 $      643 Discontinued operations 262 — 2,264 — Net earnings common stockholders $      792 $      501 $   3,123 $      643 Diluted avg. shares outstanding 573.6 574.1 580.1 573.7 Diluted earnings per share common stockholders Earnings from continuing operations $0.92 $0.87 $1.48 $1.12 Discontinued operations 0.46 — 3.90 — Diluted earnings per common share $1.38 $0.87 $5.38 $1.12 Quarter Ended March 31, Six Months Ended March 31, 2023 2024 2023 2024 Other deductions, net      Amortization of intangibles $119 $273 $237 $547      Restructuring costs 19 30 29 113      Other (29) 86 (37) 216           Total $109 $389 $229 $876 1 Represents interest on the Copeland note receivable.   Table 2 EMERSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLARS IN MILLIONS, UNAUDITED) Sept 30, 2023 Mar 31, 2024 Assets      Cash and equivalents $           8,051 $           2,318      Receivables, net 2,518 2,877      Inventories 2,006 2,357      Other current assets 1,244 1,457 Total current assets 13,819 9,009      Property, plant & equipment, net 2,363 2,689      Goodwill 14,480 17,964      Other intangible assets 6,263 10,976      Copeland note receivable and equity investment 3,255 3,191      Other 2,566 2,611 Total assets $         42,746 $         46,440 Liabilities and equity      Short-term borrowings and current maturities of long-term debt $              547 $           3,155      Accounts payable 1,275 1,271      Accrued expenses 3,210 3,238 Total current liabilities 5,032 7,664      Long-term debt 7,610 7,614      Other liabilities 3,506 4,381 Equity      Common stockholders' equity 20,689 20,900      Noncontrolling interests in subsidiaries 5,909 5,881 Total equity 26,598 26,781 Total liabilities and equity $         42,746 $         46,440   Table 3 EMERSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN MILLIONS, UNAUDITED) Six Months Ended March 31, 2023 2024 Operating activities Net earnings $            3,096 $              635 Earnings from discontinued operations, net of tax (2,267) — Adjustments to reconcile net earnings to net cash provided by operating activities:         Depreciation and amortization 523 846         Stock compensation 142 147         Amortization of acquisition-related inventory step-up — 231         Gain on subordinated interest — (79)         Changes in operating working capital (390) (373)         Other, net (227) (206)             Cash from continuing operations 877 1,201             Cash from discontinued operations (391) (43)             Cash provided by operating activities 486 1,158 Investing activities Capital expenditures (121) (159) Purchases of businesses, net of cash and equivalents acquired — (8,342) Proceeds from subordinated interest 15 79 Other, net (76) (68)     Cash from continuing operations (182) (8,490)     Cash from discontinued operations 2,916 1     Cash provided by (used in) investing activities 2,734 (8,489) Financing activities Net increase (decrease) in short-term borrowings (31) 2,464 Proceeds from short-term borrowings greater than three months 395 99 Payments of long-term debt (742) (1) Dividends paid (603) (600) Purchases of common stock (2,000) (175) AspenTech purchases of common stock — (129) Other, net (55) (45)     Cash provided by (used in) financing activities (3,036) 1,613