First Quarter 2017 Earnings Conference Call

Similar documents
First Quarter 2018 Earnings Conference Call. February 6, 2018

Second Quarter 2018 Earnings Conference Call. May 1, 2018

First Quarter 2015 Earnings Conference Call

Third Quarter 2016 Earnings Conference Call

Fourth Quarter 2017 Earnings Conference Call. November 7, 2017

Third Quarter 2018 Earnings Conference Call. August 7, 2018

EMERSON REPORTS STRONG SECOND QUARTER 2018 RESULTS AND RAISES FULL-YEAR GUIDANCE

EMERSON REPORTS FIRST QUARTER 2018 RESULTS AND RAISES FULL- YEAR SALES AND EPS GUIDANCE

EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

EMERSON AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS (AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

EMERSON REPORTS FULL YEAR AND FOURTH QUARTER 2017 RESULTS

EMERSON REPORTS FIRST QUARTER 2019 RESULTS AND RAISES FULL YEAR GUIDANCE

Electrical Products Group Conference

Fiscal Year 2016 Fourth Quarter Conference Call

Rockwell Automation Fiscal Year 2018 Third Quarter Conference Call

Rockwell Automation. Fiscal Year 2018 Fourth Quarter Conference Call. November 7, Copyright 2018 Rockwell Automation, Inc. All rights reserved.

Third Quarter Earnings November 8, 2018

Fourth-Quarter 2017 Results. January 31, 2018

Credit Suisse 6 th Annual Industrials Conference November 2018

Investor Deck December 2018

Second Quarter 2014 Conference Call

Third-Quarter 2014 Results. October 22, 2014

Rockwell Automation. Fiscal Year 2018 Second Quarter Conference Call. April 25, Copyright 2018 Rockwell Automation, Inc. All rights reserved.

3Q 2018 Earnings Conference Call. October 23, 2018

Lincoln Electric Holdings, Inc. Q Earnings Conference Call April 18, 2017

Second Quarter Earnings Release

1Q 2017 Earnings Conference Call April 26, 2017

Fourth-Quarter 2018 Results. January 30, 2019

Fourth Quarter 2017 Earnings Conference Call. January 24, 2018

3Q 2016 Earnings Conference Call October 25, 2016

Fiscal 2018 Second Quarter

REXNORD Third Quarter Fiscal Year 2017 Financial Results. February 2, 2017

Third-Quarter 2015 Results. October 27, 2015

XYLEM INC. Q EARNINGS RELEASE OCTOBER 30, 2018

Earnings Call Presentation

FOURTH QUARTER FISCAL YEAR May 18, 2017

The Welding Experts. Lincoln Electric Holdings, Inc. Q Earnings Conference Call April 19, 2016

2017 First Quarter Business Review

Q Earnings Presentation August 2, 2018

Earnings Call Presentation. 3 rd Quarter 2015 October 29, 2015

Fourth Quarter 2016 Conference Call. January 25, 2017

THIRD QUARTER FISCAL YEAR 2018 FINANCIAL RESULTS. February 1, 2018

4Q 2017 Earnings and 2018 Outlook Conference Call. January 24, 2018

3Q 2018 Earnings Conference Call

2Q 2017 Earnings Conference Call July 25, 2017

Lincoln Electric Holdings, Inc. Q4 and Full Year 2014 Earnings Conference Call February 17, 2015

Watts Water Technologies 3Q 2017 Earnings Conference Call November 2, 2017

Watts Water Technologies 2Q 2018 Earnings Conference Call August 2, 2018

Lincoln Electric Holdings, Inc. Q Earnings Conference Call July 23, 2018

January 29, :00am CT. Earnings Conference Call Fourth Quarter and Full Year 2018

First Quarter 2018 Earnings Conference Call. April 26, 2018

Safe Harbor and Non-GAAP Measures

2017 Third Quarter Business Review

First Quarter 2019 Financial Results

Third Quarter 2014 Conference Call

Fiscal 2018 Fourth Quarter

Safe Harbor and Non-GAAP Measures

ITT Inc. Q Earnings Call & 2018 Guidance

Allegion Fourth-Quarter 2017 Results. February 20, 2018

Earnings Presentation October 25, 2018

Fiscal 2019 First Quarter Results

Lincoln Electric Holdings, Inc.

Fiscal 2018 Third Quarter

Fiscal 2013 Third Quarter Earnings June 19, 2013

MYERS INDUSTRIES, INC. Third Quarter 2018 Earnings Presentation

Second Quarter 2017 Earnings Conference Call August 2, 2017

Conference Call Brooks Automation First Quarter FY19 Financial Results. February 5, 2019

First-Quarter 2018 Results. April 25, 2018

SECOND QUARTER FISCAL YEAR 2019 FINANCIAL RESULTS. October 31, 2018

3Q 2017 Earnings Conference Call

The Welding Experts. Lincoln Electric Holdings, Inc. Q Earnings Conference Call July 25, 2016

Q Earnings. January 25, 2017

Watts Water Technologies 1Q 2016 Earnings Conference Call May 5, 2016

Earnings Call Presentation

Investor Overview NYSE: CW

3Q 2018 Highlights and Operating Results. Products. Technology. Services. Delivered Globally.

Allegion Second-Quarter 2018 Results. July 26, 2018

2Q 2017 Highlights and Operating Results

Third Quarter 2017 Earnings Conference Call November 1, 2017

First Quarter 2018 Conference Call

PPG Fourth Quarter and Full Year 2017 Financial Results

Divestiture of Valves & Controls August 19, 2016

Safe Harbor and Non-GAAP Measures

Allegion Second-Quarter 2015 Results. July 30, 2015

XYLEM INC. Q EARNINGS RELEASE JULY 31, 2018

Bank of America Merrill Lynch Global Industrials Conference 2018 March 2018

Third Quarter 2018 Earnings Release Supplement

Investor Overview NYSE: CW

Lincoln Electric Holdings, Inc.

ITT Inc. Investor Presentation

Fourth Quarter 2018 Financial Results

ITW Conference Call First Quarter 2013

Lincoln Electric Holdings, Inc. Q Earnings Conference Call October 25, 2018

4Q 2017 Highlights and Operating Results

PPG Third Quarter 2017 Financial Results

nvent First Quarter 2018 Earnings Presentation

MYERS INDUSTRIES, INC. Fourth Quarter & Full Year 2018 Earnings Presentation

Lincoln Electric Holdings, Inc. Q Earnings Conference Call October 30, 2014

ZEBRA TECHNOLOGIES SECOND-QUARTER 2016 RESULTS. August 9, 2016

1Q 2018 Highlights and Operating Results

Transcription:

Earnings Conference Call February 7, 2017 Safe Harbor Statement Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the remainder of the year, and Emerson undertakes no obligation to update any such statements to reflect later developments. Factors that could cause actual results to vary materially from those discussed today are provided in our most recent Annual Report on Form 10-K and subsequent reports as filed with the SEC. Non-GAAP Measures In this call we will discuss some non-gaap measures (denoted with *) in talking about our company s performance, and the reconciliation of those measures to the most comparable GAAP measures is contained within this presentation or available at our website www.emerson.com under Investors. 1

Revenue and EPS $0.46 $0.56 Summary Mixed but generally improving global economic conditions in the quarter $3.3B $3.2B Automation spending remained down as a result of low oil prices, but trends are improving Favorable HVACR, U.S. and Asian construction markets Underlying Sales*: (3%) 2016 2017 T3M Orders November -10 to -5% December -5 to 0% January Est 0 to 5% Earnings per share from continuing operations increased 22% to $0.56 Improved profitability primarily due to savings from prior year restructuring actions Operating cash flow from continuing operations increased 6% to $410M First Quarter Results Exceeded Expectations 2

P&L Summary ($M excl. EPS) 2016 2017 Chg. Sales $3,337 $3,216 (4%) Underlying sales* down (3%) Gross profit $1,414 $1,365 (3%) % of sales 42.4% 42.4% - bps SG&A expense ($879) ($822) Other deductions, net ($54) ($33) EBIT* $481 $510 6% % of sales* 14.4% 15.8% 140 bps Shares 652.5 644.3 EPS Continuing Ops $0.46 $0.56 22% EPS $0.53 $0.48 (9%) Benefit of cost reduction and containment actions EBIT margin up 140 basis points $0.07 income tax benefit 3

Underlying Sales* Change Middle East/Africa Canada Latin America China Asia Europe United States -20% -19% -5% -2% -3% 7% 17% Underlying sales* (3%) Acq/Div - pts FX impact (1) pts Net sales (4%) Generally Improving Conditions - - Most Notably in U.S., Asia and Western Europe 4

Business Segment Earnings & Cash Flow ($M) 2016 2017 Chg. Business segment EBIT* $559 $575 3% % of sales* 16.7% 17.9% 120 bps Accounting methods $44 $33 Corporate & other ($122) ($98) Interest expense, net ($47) ($46) Segment margin up 120 basis points driven by benefits from prior year restructuring actions Favorable comparisons on stock compensation ($26M) Pretax earnings $434 $464 7% % of sales 13.0% 14.4% 140 bps Operating cash flow from continuing operations $386 $410 6% Capital expenditures ($124) ($100) (20%) Free cash flow* from continuing operations $262 $310 19% Appropriate level of capital spending Trade working capital $2,466 $2,369 % of sales 18.5% 18.4% (10 bps) Insert footer or confidential information here if needed. Strong trade working capital management 5

Automation Solutions Reported Sales $2,162M $1,967M 15.8% EBIT% 16.6% Underlying Sales*: (8%) 2016 2017 T3M Orders November -15 to 10% December -10 to -5% January Est ~0% Sales % Chg. vs. PY NA (11%) Asia (2%) China 4% Europe (5%) LAM (29%) MEA 3% FX Impact (1) pt Spending in energy related and general industrial markets remains at low levels, but improving Power, chemical and life sciences markets continue to provide growth Improving MRO spending will benefit 2 nd and 3 rd quarters Margin increased 80 basis points primarily due to savings from restructuring actions Business Will Remain Under Pressure in Second Quarter - - Continued Improvement in Served Markets During the Fiscal Year 6

Commercial & Residential Solutions Reported Sales $1,178M $1,252M 18.5% EBIT% 19.9% Underlying Sales*: 7% 2016 2017 T3M Orders November 5 to 10% December 5 to 10% January Est 0 to 5% Sales % Chg. vs. PY NA 4% Asia 26% China 40% Europe 7% LAM 3% MEA (29%) FX Impact (1) pt Strong demand in global air conditioning and refrigeration markets, favorable conditions in U.S. and Asian construction markets NA growth led by U.S. residential and commercial air conditioning Broad strength in Asia HVAC Energy-efficient solutions in China Margin improved 140 bps from volume leverage and savings from restructuring actions; Benefits of platform leverage Favorable Conditions in HVACR and U.S. Construction Support Outlook for Low to Mid-Single Digit Growth in 2017 7

Fiscal Year 2017 Outlook First quarter results and recent orders trends support improving 2017 outlook - - The turn in orders is occurring one quarter sooner than expected Revised fiscal year 2017 guidance Net sales remain at (1%) to (3%); Underlying sales* increased to 0% to (2%) excluding unfavorable currency translation of ~1% Automation Solutions platform down (5%) to (7%); underlying sales* down (3%) to (5%) excluding unfavorable currency translation of ~2% Commercial & Residential Solutions platform up 3% to 5% Earnings per share raised to $2.47 to $2.62 from previous $2.35 to $2.50 Includes $0.07 income tax benefit from the first quarter Excludes impact of pending acquisition of Pentair s Valves & Controls business Operating cash flow from continuing operations expected to be ~$2.5B, flat to the prior year 8

Appendix 9

Reconciliation of Non-GAAP Measures This information reconciles non-gaap measures (denoted with a *) with the most directly comparable GAAP measure. (dollars in millions) Q1 2017 Underlying Sales Change Emerson Auto Solns Comm & Res Solns Reported (GAAP) (4)% (9)% 6% FX/Acq./Div. 1% 1% 1% Underlying* (3)% (8)% 7% EBIT Q1 2016 Q1 2017 Change Pretax earnings (GAAP) $ 434 464 7% % of sales 13.0% 14.4% 140 bps Interest expense, net 47 46 (1)% % of sales 1.4% 1.4% - EBIT* $ 481 510 6% % of sales* 14.4% 15.8% 140 bps The Commercial & Residential Solutions business includes the results of both our Climate Technologies and Tools & Home Products segments The outlook contained herein represents the Company's expectations for its consolidated results from continuing operations, and excludes the results of discontinued operations and any results attributable to the pending acquisition of the Pentair Valves & Controls business. 10