ST.
LOUIS, Nov. 7, 2023 /PRNewswire/ -- Emerson
(NYSE: EMR) today reported results for its fourth quarter and
fiscal year ended September 30, 2023,
which are presented on a continuing operations basis. Emerson also
declared a quarterly cash dividend of $0.525 per share of common stock payable
December 11, 2023 to stockholders of
record November 17, 2023.
|
(dollars in
millions, except per share)
|
|
2022
Q4
|
2023
Q4
|
Change
|
|
2022
|
2023
|
Change
|
|
Underlying
Orders1
|
|
|
|
5 %
|
|
|
|
5 %
|
|
Net Sales
|
|
$3,892
|
$4,090
|
5 %
|
|
$13,804
|
$15,165
|
10 %
|
|
Underlying
Sales2
|
|
|
|
5 %
|
|
|
|
10 %
|
|
Pretax
Earnings
|
|
$603
|
$904
|
|
|
$2,432
|
$2,726
|
|
|
Margin
|
|
15.5 %
|
22.1 %
|
660
bps
|
|
17.6 %
|
18.0 %
|
40
bps
|
|
Adjusted Segment
EBITA3
|
|
$963
|
$1,045
|
|
|
$3,147
|
$3,794
|
|
|
Margin
|
|
24.7 %
|
25.5 %
|
80
bps
|
|
22.8 %
|
25.0 %
|
220
bps
|
|
GAAP Earnings Per
Share
|
|
$0.82
|
$1.22
|
49 %
|
|
$3.16
|
$3.72
|
18 %
|
|
Adjusted Earnings Per
Share4
|
|
$1.07
|
$1.29
|
21 %
|
|
$3.64
|
$4.44
|
22 %
|
|
Operating Cash
Flow
|
|
$813
|
$1,007
|
24 %
|
|
$2,048
|
$2,726
|
33 %
|
|
Free Cash
Flow
|
|
$713
|
$838
|
17 %
|
|
$1,749
|
$2,363
|
35 %
|
Management Commentary
"Emerson completed an exceptional fiscal 2023 with double-digit
sales growth, strong operating leverage and robust adjusted
earnings per share growth," said Emerson
President and Chief Executive Officer Lal Karsanbhai. "This
momentum and our continued focus on execution, leading technology
and resilient end-markets provides confidence in our guidance for
fiscal 2024."
Karsanbhai continued, "In the quarter, we also closed the
acquisition of NI, largely completing our transformation into an
automation leader. Our differentiated portfolio with NI and
accelerated investments in new-to-the-world innovation provide a
unique opportunity to solve many of our customers' toughest
challenges and create long-term shareholder value."
2024 Outlook
The following tables summarize the fiscal year 2024 guidance
framework and incorporates, other than as set forth below, our NI
acquisition5, which closed on October 11, 2023. 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
Q1
|
2024
|
|
Net Sales
Growth
|
14% - 17.5%
|
13% - 15.5%
|
|
Underlying Sales
Growth
|
6.5% - 8.5%
|
4% - 6%
|
|
Earnings Per
Share5
|
$0.45 -
$0.50
|
$3.82 -
$4.02
|
|
Amortization of
Intangibles
|
~$0.17
|
~$0.67
|
|
Restructuring /
Related Costs
|
~$0.08
|
~$0.22
|
|
Acquisition /
Divestiture Fees and Related Costs
|
~$0.19
|
~$0.22
|
|
Copeland Equity
Loss
|
~$0.11
|
~$0.22
|
|
Adjusted Earnings Per
Share
|
$1.00 -
$1.05
|
$5.15 -
$5.35
|
|
Operating Cash
Flow
|
|
$3.0B -
$3.1B
|
|
Free Cash
Flow
|
|
$2.6B -
$2.7B
|
|
1 Underlying orders does not include
AspenTech.
|
|
2 Underlying
sales excludes the impact of currency translation, and significant
acquisitions and divestitures. Heritage AspenTech and Emerson's
businesses contributed to AspenTech are included in underlying
sales beginning in 2023 Q4.
|
|
3 Adjusted segment EBITA represents
segment earnings excluding restructuring and intangibles
amortization expense.
|
|
4 Adjusted EPS excludes restructuring
and related costs, NI investment gains, acquisition/divestiture
costs, write-offs associated with Emerson's Russia exit, an
AspenTech Micromine purchase price hedge, the income/loss of
Emerson's 40% share of Copeland, interest income on undeployed
proceeds and intangibles amortization expense. Post-Copeland
transaction close, adjusted EPS now includes the interest on the
Copeland note receivable valued at $0.04 and $0.05 for the fourth
quarter and fiscal year 2023, respectively.
|
|
5 GAAP
earnings per share guidance for 2024 does not include the impact of
intangibles amortization and other purchase accounting-related
costs related to the NI transaction. The initial accounting for the
transaction is not yet complete and therefore Emerson is unable to
estimate these amounts. Although these items may have a significant
impact on GAAP EPS, they will be excluded from adjusted earnings
per share and will have no impact on cash flows.
|
Conference Call
Today, beginning at 7:00 a.m. Central
Time / 8:00 a.m. Eastern Time,
Emerson management will discuss the fourth 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.
Contacts
|
Investors:
|
Media:
|
|
Colleen
Mettler
|
Joseph Sala / Tanner
Kaufman / 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 September
30,
|
|
Year Ended September
30,
|
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$3,892
|
|
$4,090
|
|
$13,804
|
|
$15,165
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
|
2,063
|
|
2,078
|
|
7,498
|
|
7,738
|
|
SG&A expenses
|
983
|
|
1,114
|
|
3,614
|
|
4,186
|
|
Gain on subordinated
interest
|
—
|
|
(161)
|
|
(453)
|
|
(161)
|
|
Other deductions,
net
|
189
|
|
263
|
|
519
|
|
683
|
|
Interest expense (income),
net
|
54
|
|
(77)
|
|
194
|
|
34
|
|
Interest income from related
party1
|
—
|
|
(31)
|
|
—
|
|
(41)
|
|
Earnings from
continuing operations before income taxes
|
603
|
|
904
|
|
2,432
|
|
2,726
|
|
Income taxes
|
150
|
|
209
|
|
549
|
|
599
|
|
Earnings from
continuing operations
|
453
|
|
695
|
|
1,883
|
|
2,127
|
|
Discontinued
operations, net of tax
|
255
|
|
43
|
|
1,347
|
|
11,073
|
|
Net
earnings
|
708
|
|
738
|
|
3,230
|
|
13,200
|
|
Less: Noncontrolling
interests in subsidiaries
|
(32)
|
|
(6)
|
|
(1)
|
|
(19)
|
|
Net earnings common
stockholders
|
$740
|
|
$744
|
|
$3,231
|
|
$13,219
|
|
|
|
|
|
|
|
|
|
Earnings common
stockholders
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$486
|
|
$701
|
|
$1,886
|
|
$2,152
|
|
Discontinued
operations
|
254
|
|
43
|
|
1,345
|
|
11,067
|
|
Net earnings common
stockholders
|
$740
|
|
$744
|
|
$3,231
|
|
$13,219
|
|
|
|
|
|
|
|
|
|
Diluted avg. shares
outstanding
|
594.5
|
|
574.7
|
|
596.3
|
|
577.3
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share common stockholders
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$0.82
|
|
$1.22
|
|
$3.16
|
|
$3.72
|
|
Discontinued
operations
|
0.42
|
|
0.07
|
|
2.25
|
|
19.16
|
|
Diluted earnings per
common share
|
$1.24
|
|
$1.29
|
|
$5.41
|
|
$22.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September
30,
|
|
Year Ended September
30,
|
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
Other deductions,
net
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
$129
|
|
$125
|
|
$336
|
|
$482
|
|
Restructuring
costs
|
31
|
|
31
|
|
75
|
|
72
|
|
Other
|
29
|
|
107
|
|
108
|
|
129
|
|
Total
|
$189
|
|
$263
|
|
$519
|
|
$683
|
|
1 Represents
interest on the Copeland note receivable.
|
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
EMERSON AND
SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(DOLLARS IN MILLIONS,
UNAUDITED)
|
|
|
|
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
Assets
|
|
|
|
|
Cash and
equivalents
|
$1,804
|
|
$8,051
|
|
Receivables, net
|
2,261
|
|
2,518
|
|
Inventories
|
1,742
|
|
2,006
|
|
Other current
assets
|
1,301
|
|
1,244
|
|
Current assets
held-for-sale
|
1,398
|
|
—
|
|
Total current assets
|
8,506
|
|
13,819
|
|
Property, plant &
equipment, net
|
2,239
|
|
2,363
|
|
Goodwill
|
13,946
|
|
14,480
|
|
Other intangible
assets
|
6,572
|
|
6,263
|
|
Copeland note receivable and
equity investment
|
—
|
|
3,255
|
|
Other
|
2,151
|
|
2,566
|
|
Noncurrent assets
held-for-sale
|
2,258
|
|
—
|
|
Total assets
|
$35,672
|
|
$42,746
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Short-term borrowings and
current
|
|
|
|
|
maturities
of long-term debt
|
$2,115
|
|
$547
|
|
Accounts payable
|
1,276
|
|
1,275
|
|
Accrued expenses
|
3,038
|
|
3,210
|
|
Current liabilities
held-for-sale
|
1,348
|
|
—
|
|
Total current liabilities
|
7,777
|
|
5,032
|
|
Long-term debt
|
8,259
|
|
7,610
|
|
Other liabilities
|
3,153
|
|
3,506
|
|
Noncurrent liabilities
held-for-sale
|
167
|
|
—
|
|
Equity
|
|
|
|
|
Common stockholders'
equity
|
10,364
|
|
20,689
|
|
Noncontrolling interests in
subsidiaries
|
5,952
|
|
5,909
|
|
Total equity
|
16,316
|
|
26,598
|
|
Total liabilities and equity
|
$35,672
|
|
$42,746
|
|
|
|
|
Table
3
|
|
EMERSON AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
|
(DOLLARS IN MILLIONS,
UNAUDITED)
|
|
|
|
|
|
|
Year Ended Sept
30
|
|
|
2022
|
|
2023
|
|
Operating
activities
|
|
|
|
|
|
Net
earnings
|
|
$3,230
|
|
$13,200
|
|
Earnings from
discontinued operations, net of tax
|
|
(1,347)
|
|
(11,073)
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
842
|
|
1,051
|
|
Stock
compensation
|
|
125
|
|
250
|
|
Pension
expense
|
|
2
|
|
(71)
|
|
Pension
funding
|
|
(43)
|
|
(43)
|
|
Changes in
operating working capital
|
|
(312)
|
|
(190)
|
|
Gain on
subordinated interest
|
|
(453)
|
|
(161)
|
|
Other,
net
|
|
4
|
|
(237)
|
|
Cash from continuing operations
|
|
2,048
|
|
2,726
|
|
Cash from discontinued operations
|
|
874
|
|
(2,089)
|
|
Cash provided by operating activities
|
|
2,922
|
|
637
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Capital
expenditures
|
|
(299)
|
|
(363)
|
|
Purchases of
businesses, net of cash and equivalents acquired
|
|
(5,702)
|
|
(705)
|
|
Divestitures of
businesses
|
|
17
|
|
—
|
|
Proceeds from
subordinated interest
|
|
438
|
|
176
|
|
Proceeds from related
party note receivable
|
|
—
|
|
918
|
|
Other, net
|
|
(138)
|
|
(141)
|
|
Cash from continuing operations
|
|
(5,684)
|
|
(115)
|
|
Cash from discontinued operations
|
|
350
|
|
12,530
|
|
Cash provided by (used in) investing activities
|
|
(5,334)
|
|
12,415
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Net increase
(decrease) in short-term borrowings
|
|
1,241
|
|
(1,578)
|
|
Proceeds from
short-term borrowings greater than three months
|
|
1,162
|
|
395
|
|
Payments of short-term
borrowings greater than three months
|
|
(1,165)
|
|
(400)
|
|
Proceeds from
long-term debt
|
|
2,975
|
|
—
|
|
Payments of long-term
debt
|
|
(522)
|
|
(741)
|
|
Dividends
paid
|
|
(1,223)
|
|
(1,198)
|
|
Purchases of common
stock
|
|
(500)
|
|
(2,000)
|
|
AspenTech purchases of
common stock
|
|
—
|
|
(214)
|
|
Payment of related
party note payable
|
|
—
|
|
(918)
|
|
Other, net
|
|
80
|
|
(169)
|
|
Cash provided by (used in) financing activities
|
|
2,048
|
|
(6,823)
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents
|
|
(186)
|
|
18
|
|
Increase (Decrease)
in cash and equivalents
|
|
(550)
|
|
6,247
|
|
Beginning cash and
equivalents
|
|
2,354
|
|
1,804
|
|
Ending cash and
equivalents
|
|
$1,804
|
|
$8,051
|
|
Table
4
|
|
EMERSON AND
SUBSIDIARIES
SEGMENT SALES AND
EARNINGS
(AMOUNTS IN MILLIONS,
UNAUDITED)
|
|
|
The following tables
show results for the Company's segments on an adjusted segment
EBITA basis and are intended to supplement the Company's results of
operations, including its segment earnings which are defined as
earnings before interest and taxes. The Company defines adjusted
segment and total segment EBITA as segment earnings excluding
intangibles amortization expense, and restructuring and related
expense. Adjusted segment and total segment EBITA, and adjusted
segment and total segment EBITA margin are measures used by
management and may be useful for investors to evaluate the
Company's segments' operational performance.
|
|
|
Quarter Ended Sept
30
|
|
|
2022
|
|
2023
|
|
Reported
|
|
Underlying
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
|
Final
Control
|
$1,001
|
|
$1,081
|
|
8 %
|
|
7 %
|
|
|
Measurement &
Analytical
|
921
|
|
1,045
|
|
14 %
|
|
15 %
|
|
|
Discrete
Automation
|
718
|
|
666
|
|
(7) %
|
|
(8) %
|
|
|
Safety &
Productivity
|
336
|
|
354
|
|
5 %
|
|
4 %
|
|
|
Intelligent
Devices
|
$2,976
|
|
$3,146
|
|
6 %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
687
|
|
714
|
|
4 %
|
|
3 %
|
|
|
AspenTech
|
251
|
|
249
|
|
(1) %
|
|
(1) %
|
|
|
Software and
Control
|
$938
|
|
$963
|
|
3 %
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations
|
(22)
|
|
(19)
|
|
|
|
|
|
|
Total
|
$3,892
|
|
$4,090
|
|
5 %
|
|
5 %
|
|
|
Sales Growth by
Geography
|
|
|
Quarter Ended Sept
30
|
|
Americas
|
3 %
|
|
Europe
|
8 %
|
|
Asia, Middle East &
Africa
|
5 %
|
|
|
|
|
|
Table 4
cont.
|
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
Reported
|
|
Underlying
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
Final
Control
|
$3,607
|
|
$3,970
|
|
10 %
|
|
13 %
|
|
Measurement &
Analytical
|
3,215
|
|
3,595
|
|
12 %
|
|
16 %
|
|
Discrete
Automation
|
2,612
|
|
2,635
|
|
1 %
|
|
3 %
|
|
Safety &
Productivity
|
1,402
|
|
1,388
|
|
(1) %
|
|
(1) %
|
|
Intelligent
Devices
|
$10,836
|
|
$11,588
|
|
7 %
|
|
10 %
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
2,398
|
|
2,606
|
|
9 %
|
|
11 %
|
|
AspenTech
|
656
|
|
1,042
|
|
59 %
|
|
(1) %
|
|
Software and
Control
|
$3,054
|
|
$3,648
|
|
20 %
|
|
10 %
|
|
|
|
|
|
|
|
|
|
Eliminations
|
(86)
|
|
(71)
|
|
|
|
|
|
Total
|
$13,804
|
|
$15,165
|
|
10 %
|
|
10 %
|
|
Sales Growth by
Geography
|
|
|
Year Ended Sept
30
|
|
Americas
|
10 %
|
|
Europe
|
10 %
|
|
Asia, Middle East &
Africa
|
9 %
|
|
|
|
Table 4
cont.
|
|
|
Quarter Ended Sept
30
|
|
Quarter Ended Sept
30
|
|
2022
|
|
2023
|
|
As Reported
(GAAP)
|
|
Adjusted EBITA
(Non-GAAP)
|
|
As Reported
(GAAP)
|
|
Adjusted EBITA
(Non-GAAP)
|
|
Earnings
|
|
|
|
|
|
|
|
|
Final
Control
|
$168
|
|
$233
|
|
$247
|
|
$285
|
|
Margins
|
16.7 %
|
|
23.2 %
|
|
22.9 %
|
|
26.4 %
|
|
Measurement &
Analytical
|
250
|
|
250
|
|
275
|
|
298
|
|
Margins
|
27.2 %
|
|
27.1 %
|
|
26.3 %
|
|
28.4 %
|
|
Discrete
Automation
|
177
|
|
180
|
|
131
|
|
145
|
|
Margins
|
24.6 %
|
|
24.1 %
|
|
19.7 %
|
|
21.8 %
|
|
Safety &
Productivity
|
51
|
|
67
|
|
78
|
|
83
|
|
Margins
|
15.1 %
|
|
19.9 %
|
|
21.9 %
|
|
23.5 %
|
|
Intelligent
Devices
|
$646
|
|
$730
|
|
$731
|
|
$811
|
|
Margins
|
21.7 %
|
|
24.5 %
|
|
23.2 %
|
|
25.8 %
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
143
|
|
152
|
|
151
|
|
158
|
|
Margins
|
20.8 %
|
|
22.0 %
|
|
21.1 %
|
|
22.2 %
|
|
AspenTech
|
(39)
|
|
81
|
|
(47)
|
|
76
|
|
Margins
|
(15.2) %
|
|
32.9 %
|
|
(18.7) %
|
|
30.2 %
|
|
Software and
Control
|
$104
|
|
$233
|
|
$104
|
|
$234
|
|
Margins
|
11.2 %
|
|
24.9 %
|
|
10.8 %
|
|
24.3 %
|
|
|
|
|
|
|
|
|
|
Corporate items and
interest expense, net:
|
|
|
|
|
|
|
|
|
Stock
compensation
|
(33)
|
|
(33)
|
|
(52)
|
|
(52)
|
|
Unallocated pension and
postretirement costs
|
23
|
|
23
|
|
38
|
|
38
|
|
Corporate and
other
|
(83)
|
|
(27)
|
|
(70)
|
|
(41)
|
|
Gain on Vertiv
Investment
|
—
|
|
—
|
|
161
|
|
—
|
|
Copeland equity method
investment loss
|
—
|
|
—
|
|
(116)
|
|
—
|
|
Interest (expense)
income, net
|
(54)
|
|
—
|
|
77
|
|
—
|
|
Interest income from
related party1
|
—
|
|
—
|
|
31
|
|
—
|
|
|
|
|
|
|
|
|
|
Pretax Earnings /
Adjusted EBITA
|
$603
|
|
$926
|
|
$904
|
|
$990
|
|
Margins
|
15.5 %
|
|
23.8 %
|
|
22.1 %
|
|
24.2 %
|
|
|
|
|
|
|
|
|
|
Supplemental Total
Segment Earnings:
|
|
|
|
|
|
|
|
|
Adjusted Total
Segment EBITA
|
|
|
$963
|
|
|
|
$1,045
|
|
Margins
|
|
|
24.7 %
|
|
|
|
25.5 %
|
|
|
|
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable.
|
|
|
Year Ended Sept
30
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
As Reported
(GAAP)
|
|
Adjusted EBITA
(Non-GAAP)
|
|
As Reported
(GAAP)
|
|
Adjusted EBITA
(Non-GAAP)
|
|
Earnings
|
|
|
|
|
|
|
|
|
Final
Control
|
$592
|
|
$761
|
|
$865
|
|
$981
|
|
Margins
|
16.4 %
|
|
21.1 %
|
|
21.8 %
|
|
24.7 %
|
|
Measurement &
Analytical
|
785
|
|
809
|
|
936
|
|
976
|
|
Margins
|
24.4 %
|
|
25.2 %
|
|
26.0 %
|
|
27.1 %
|
|
Discrete
Automation
|
542
|
|
572
|
|
509
|
|
565
|
|
Margins
|
20.7 %
|
|
21.9 %
|
|
19.3 %
|
|
21.4 %
|
|
Safety &
Productivity
|
250
|
|
286
|
|
306
|
|
332
|
|
Margins
|
17.8 %
|
|
20.3 %
|
|
22.0 %
|
|
23.9 %
|
|
Intelligent
Devices
|
$2,169
|
|
$2,428
|
|
$2,616
|
|
$2,854
|
|
Margins
|
20.0 %
|
|
22.4 %
|
|
22.6 %
|
|
24.6 %
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
437
|
|
470
|
|
529
|
|
560
|
|
Margins
|
18.2 %
|
|
19.6 %
|
|
20.3 %
|
|
21.5 %
|
|
AspenTech
|
12
|
|
249
|
|
(107)
|
|
380
|
|
Margins
|
1.9 %
|
|
38.0 %
|
|
(10.3) %
|
|
36.4 %
|
|
Software and
Control
|
$449
|
|
$719
|
|
$422
|
|
$940
|
|
Margins
|
14.7 %
|
|
23.5 %
|
|
11.6 %
|
|
25.8 %
|
|
|
|
|
|
|
|
|
|
Corporate items and
interest expense, net:
|
|
|
|
|
|
|
|
|
Stock
compensation
|
(125)
|
|
(125)
|
|
(250)
|
|
(250)
|
|
Unallocated pension and
postretirement costs
|
99
|
|
99
|
|
171
|
|
171
|
|
Corporate and
other
|
(419)
|
|
(105)
|
|
(224)
|
|
(159)
|
|
Gain on Vertiv
Investment
|
453
|
|
—
|
|
161
|
|
—
|
|
Copeland equity method
investment loss
|
—
|
|
—
|
|
(177)
|
|
—
|
|
Interest (expense)
income, net
|
(194)
|
|
—
|
|
(34)
|
|
—
|
|
Interest income from
related party1
|
—
|
|
—
|
|
41
|
|
—
|
|
|
|
|
|
|
|
|
|
Pretax Earnings /
Adjusted EBITA
|
$2,432
|
|
$3,016
|
|
$2,726
|
|
$3,556
|
|
Margins
|
17.6 %
|
|
21.8 %
|
|
18.0 %
|
|
23.4 %
|
|
|
|
|
|
|
|
|
|
Supplemental Total
Segment Earnings:
|
|
|
|
|
|
|
|
|
Adjusted Total
Segment EBITA
|
|
|
$3,147
|
|
|
|
$3,794
|
|
Margins
|
|
|
22.8 %
|
|
|
|
25.0 %
|
|
|
|
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable.
|
|
Table 4
cont.
|
|
|
Quarter Ended Sept
30
|
|
Quarter Ended Sept
30
|
|
2022
|
|
2023
|
|
Amortization
of
Intangibles1
|
|
Restructuring
and
Related
Costs2
|
|
Amortization
of
Intangibles1
|
|
Restructuring
and
Related
Costs2
|
|
Final
Control
|
$23
|
|
$42
|
|
$22
|
|
$16
|
|
Measurement &
Analytical
|
6
|
|
(6)
|
|
12
|
|
11
|
|
Discrete
Automation
|
7
|
|
(4)
|
|
7
|
|
7
|
|
Safety &
Productivity
|
6
|
|
10
|
|
6
|
|
(1)
|
|
Intelligent
Devices
|
$42
|
|
$42
|
|
$47
|
|
$33
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
6
|
|
3
|
|
5
|
|
2
|
|
AspenTech
|
121
|
|
(1)
|
|
122
|
|
1
|
|
Software and
Control
|
$127
|
|
$2
|
|
$127
|
|
$3
|
|
|
|
|
|
|
|
|
|
Corporate
|
—
|
|
3
|
|
—
|
|
2
|
|
Total
|
$169
|
|
$47
|
|
$174
|
|
$38
|
|
|
|
|
|
|
|
|
|
1
Amortization of intangibles includes $49 and $49 reported in cost
of sales for the three months ended September 30, 2022 and 2023,
respectively.
|
|
2
Restructuring and related costs includes $16 and $7 reported in
cost of sales and selling, general and administrative expenses for
the three months ended September 30, 2022 and 2023,
respectively.
|
|
|
|
Year Ended Sept
30
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
Amortization
of
Intangibles1
|
|
Restructuring
and
Related
Costs2
|
|
Amortization
of
Intangibles1
|
|
Restructuring
and
Related
Costs2
|
|
Final
Control
|
$94
|
|
$75
|
|
$88
|
|
$28
|
|
Measurement &
Analytical
|
21
|
|
3
|
|
27
|
|
13
|
|
Discrete
Automation
|
30
|
|
—
|
|
29
|
|
27
|
|
Safety &
Productivity
|
26
|
|
10
|
|
26
|
|
—
|
|
Intelligent
Devices
|
$171
|
|
$88
|
|
$170
|
|
$68
|
|
|
|
|
|
|
|
|
|
Control Systems &
Software
|
22
|
|
11
|
|
22
|
|
9
|
|
AspenTech
|
237
|
|
—
|
|
486
|
|
1
|
|
Software and
Control
|
$259
|
|
$11
|
|
$508
|
|
$10
|
|
|
|
|
|
|
|
|
|
Corporate
|
—
|
|
16
|
|
—
|
|
14
|
|
Total
|
$430
|
|
$115
|
|
$678
|
|
$92
|
|
|
|
|
|
|
|
|
|
1
Amortization of intangibles includes $108 and $196 reported in cost
of sales for the twelve months ended September 30, 2022 and 2023,
respectively.
|
|
2
Restructuring and related costs includes $40 and $20 reported in
cost of sales and selling, general and administrative expenses for
the twelve months ended September 30, 2022 and 2023,
respectively.
|
|
|
|
|
|
Quarter Ended Sept
30
|
|
2022
|
|
2023
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
|
|
Final
Control
|
$56
|
|
$41
|
|
Measurement &
Analytical
|
29
|
|
37
|
|
Discrete
Automation
|
21
|
|
21
|
|
Safety &
Productivity
|
13
|
|
13
|
|
Intelligent
Devices
|
119
|
|
112
|
|
|
|
|
|
Control Systems &
Software
|
22
|
|
23
|
|
AspenTech
|
123
|
|
123
|
|
Software and
Control
|
145
|
|
146
|
|
|
|
|
|
Corporate
|
7
|
|
13
|
|
Total
|
$271
|
|
$271
|
|
|
|
|
|
|
|
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
|
|
Final
Control
|
$212
|
|
$170
|
|
Measurement &
Analytical
|
117
|
|
121
|
|
Discrete
Automation
|
88
|
|
84
|
|
Safety &
Productivity
|
57
|
|
57
|
|
Intelligent
Devices
|
474
|
|
432
|
|
|
|
|
|
Control Systems &
Software
|
93
|
|
90
|
|
AspenTech
|
242
|
|
492
|
|
Software and
Control
|
335
|
|
582
|
|
|
|
|
|
Corporate
|
33
|
|
37
|
|
Total
|
$842
|
|
$1,051
|
|
Table
5
|
|
|
EMERSON AND
SUBSIDIARIES
ADJUSTED CORPORATE AND
OTHER SUPPLEMENTAL
(AMOUNTS IN MILLIONS,
UNAUDITED)
|
|
|
The following table
shows the Company's corporate and other expenses on an adjusted
basis. The Company's definition of adjusted corporate and other
excludes corporate restructuring and related costs, first year
purchase accounting related items and transaction fees, and certain
gains, losses or impairments. This metric is useful for reconciling
from total adjusted segment EBITA to the Company's consolidated
adjusted EBITA.
|
|
|
|
Quarter Ended Sept
30
|
|
Corporate and
Other
|
|
2022
|
|
2023
|
|
Corporate and
other (GAAP)
|
|
$(83)
|
|
$(70)
|
|
Corporate
restructuring and related costs
|
|
1
|
|
2
|
|
National
Instruments investment gain
|
|
—
|
|
(9)
|
|
Other
investment-related gains
|
|
(14)
|
|
—
|
|
Acquisition /
divestiture costs
|
|
—
|
|
36
|
|
Russia business
exit
|
|
19
|
1
|
—
|
|
AspenTech
Micromine purchase price hedge
|
|
50
|
|
—
|
|
|
|
|
|
|
Adjusted
corporate and other (Non-GAAP)
|
|
$(27)
|
|
$(41)
|
|
|
|
|
|
|
1 The Russia
business exit charge includes $2 of restructuring costs.
|
|
|
|
Year Ended Sept
30
|
|
Corporate and
Other
|
|
2022
|
|
2023
|
|
Corporate and
other (GAAP)
|
|
$(419)
|
|
$(224)
|
|
Corporate
restructuring and related costs
|
|
6
|
|
14
|
|
National
Instruments investment gain
|
|
—
|
|
(56)
|
|
Other
investment-related gains
|
|
(14)
|
|
—
|
|
Acquisition /
divestiture costs
|
|
91
|
|
84
|
|
Russia business
exit
|
|
181
|
1
|
47
|
|
AspenTech
Micromine purchase price hedge
|
|
50
|
|
(24)
|
|
|
|
|
|
|
Adjusted
corporate and other (Non-GAAP)
|
|
$(105)
|
|
$(159)
|
|
|
|
|
|
|
1 The Russia
business exit charge includes $10 of restructuring
costs.
|
|
Table
6
|
|
|
EMERSON AND
SUBSIDIARIES
ADJUSTED EBITA &
EPS SUPPLEMENTAL
(AMOUNTS IN MILLIONS
EXCEPT PER SHARE, UNAUDITED)
|
|
|
The following tables,
which show results on an adjusted EBITA basis and diluted earnings
per share on an adjusted basis, are intended to supplement the
Company's discussion of its results of operations herein. The
Company defines adjusted EBITA as earnings excluding interest
expense, net, income taxes, intangibles amortization expense,
restructuring expense, first year purchase accounting related items
and transaction fees, gains or losses on the Copeland equity method
investment, and certain gains, losses or impairments. Adjusted
earnings per share excludes intangibles amortization expense,
restructuring expense, first year purchase accounting related items
and transaction fees, interest income on undeployed proceeds, gains
or losses on the Copeland equity method investment, and certain
gains, losses or impairments. Adjusted EBITA, adjusted EBITA
margin, and adjusted earnings per share are measures used by
management and may be useful for investors to evaluate the
Company's operational performance.
|
|
|
Quarter Ended Sept
30
|
|
2022
|
|
2023
|
|
|
|
|
|
Pretax
earnings
|
$603
|
|
$904
|
|
Percent of
sales
|
15.5 %
|
|
22.1 %
|
|
Interest expense
(income), net
|
54
|
|
(77)
|
|
Interest income from
related party1
|
—
|
|
(31)
|
|
Amortization of
intangibles
|
169
|
|
174
|
|
Restructuring and
related costs
|
46
|
|
38
|
|
Acquisition/divestiture and related costs
|
—
|
|
36
|
|
Gain on subordinated
interest
|
—
|
|
(161)
|
|
National Instruments
investment gain
|
—
|
|
(9)
|
|
Other
investment-related gains
|
(14)
|
|
—
|
|
AspenTech Micromine
purchase price hedge
|
50
|
|
—
|
|
Loss on Copeland
equity method investment
|
—
|
|
116
|
|
Russia business exit
charge
|
19
|
|
—
|
|
Adjusted
EBITA
|
$927
|
|
$990
|
|
Percent of
sales
|
23.8 %
|
|
24.2 %
|
|
|
|
|
|
Quarter Ended Sept
30
|
|
2022
|
|
2023
|
|
|
|
|
|
GAAP earnings from
continuing operations per share
|
$0.82
|
|
$1.22
|
|
|
|
|
|
Amortization of
intangibles
|
0.14
|
|
0.16
|
|
Restructuring and
related costs
|
0.06
|
|
0.07
|
|
Acquisition/divestiture and related costs
|
—
|
|
0.06
|
|
Gain on subordinated
interest
|
—
|
|
(0.21)
|
|
National Instruments
investment gain
|
—
|
|
(0.01)
|
|
Other
investment-related gains
|
(0.02)
|
|
—
|
|
AspenTech Micromine
purchase price hedge
|
0.04
|
|
—
|
|
Interest income on
undeployed proceeds from Copeland transaction
|
—
|
|
(0.14)
|
|
Loss on Copeland
equity method investment
|
—
|
|
0.14
|
|
Russia business exit
charge
|
0.03
|
|
—
|
|
|
|
|
|
Adjusted earnings
from continuing operations per share
|
$1.07
|
|
$1.29
|
|
|
|
|
|
Less: AspenTech
contribution to adjusted earnings per share
|
|
|
(0.06)
|
|
|
|
|
|
Adjusted earnings
per share excluding AspenTech contribution
|
|
|
$1.23
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable
|
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
|
|
|
|
Pretax
earnings
|
$2,432
|
|
$2,726
|
|
Percent of
sales
|
17.6 %
|
|
18.0 %
|
|
Interest expense
(income), net
|
194
|
|
34
|
|
Interest income from
related party1
|
—
|
|
(41)
|
|
Amortization of
intangibles
|
430
|
|
678
|
|
Restructuring and
related costs
|
105
|
|
92
|
|
Acquisition/divestiture and related costs
|
91
|
|
84
|
|
Gain on subordinated
interest
|
(453)
|
|
(161)
|
|
National Instruments
investment gain
|
—
|
|
(56)
|
|
Other
investment-related gains
|
(14)
|
|
—
|
|
AspenTech Micromine
purchase price hedge
|
50
|
|
(24)
|
|
Loss on Copeland
equity method investment
|
—
|
|
177
|
|
Russia business exit
charge
|
181
|
|
47
|
|
Adjusted
EBITA
|
$3,016
|
|
$3,556
|
|
Percent of
sales
|
21.8 %
|
|
23.4 %
|
|
|
|
|
|
Year Ended Sept
30
|
|
2022
|
|
2023
|
|
|
|
|
|
GAAP earnings from
continuing operations per share
|
$3.16
|
|
$3.72
|
|
|
|
|
|
Amortization of
intangibles
|
0.45
|
|
0.62
|
|
Restructuring and
related costs
|
0.14
|
|
0.14
|
|
Acquisition/divestiture costs and pre-acquisition
interest on AspenTech debt
|
0.15
|
|
0.13
|
|
Gain on subordinated
interest
|
(0.60)
|
|
(0.21)
|
|
National Instruments
investment gain
|
—
|
|
(0.07)
|
|
Other
investment-related gains
|
(0.02)
|
|
—
|
|
AspenTech Micromine
purchase price hedge
|
0.04
|
|
(0.02)
|
|
Interest income on
undeployed proceeds from Copeland transaction
|
—
|
|
(0.19)
|
|
Loss on Copeland
equity method investment
|
—
|
|
0.24
|
|
Russia business exit
charge
|
0.32
|
|
0.08
|
|
|
|
|
|
Adjusted earnings
from continuing operations per share
|
$3.64
|
|
$4.44
|
|
|
|
|
|
Less: AspenTech
contribution to adjusted earnings per share
|
|
|
(0.27)
|
|
|
|
|
|
Adjusted earnings
per share excluding AspenTech contribution
|
|
|
$4.17
|
|
|
|
|
|
1 Represents
interest on the Copeland note receivable
|
|
Table 6
cont.
|
|
|
Quarter Ended September
30, 2023
|
|
Pretax
Earnings
|
|
Income
Taxes
|
|
Earnings
from
Cont.
Ops.
|
|
Non-Controlling
Interests3
|
|
Net
Earnings
Common
Stockholders
|
|
Diluted
Earnings
Per
Share
|
|
As reported
(GAAP)
|
$904
|
|
$209
|
|
$695
|
|
$(6)
|
|
$701
|
|
$1.22
|
|
Amortization of
intangibles
|
174
|
1
|
40
|
|
134
|
|
41
|
|
93
|
|
0.16
|
|
Restructuring and
related costs
|
38
|
2
|
—
|
|
38
|
|
1
|
|
37
|
|
0.07
|
|
Acquisition/divestiture
and related costs
|
36
|
|
3
|
|
33
|
|
—
|
|
33
|
|
0.06
|
|
Gain on subordinated
interest
|
(161)
|
|
(39)
|
|
(122)
|
|
—
|
|
(122)
|
|
(0.21)
|
|
National Instruments
investment gain
|
(9)
|
|
(2)
|
|
(7)
|
|
—
|
|
(7)
|
|
(0.01)
|
|
Interest income on
undeployed proceeds
|
(106)
|
|
(25)
|
|
(81)
|
|
—
|
|
(81)
|
|
(0.14)
|
|
Copeland equity method
investment loss
|
116
|
|
33
|
|
83
|
|
—
|
|
83
|
|
0.14
|
|
Adjusted
(Non-GAAP)
|
$992
|
|
$219
|
|
$773
|
|
$36
|
|
$737
|
|
$1.29
|
|
Interest expense, net
(excluding interest income on undeployed proceeds)
|
29
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
related party4
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
(Non-GAAP)
|
$990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Amortization of intangibles includes $49 reported in cost of
sales.
|
|
2
Restructuring and related costs includes $7 reported in cost of
sales.
|
|
3 Represents
the non-controlling interest in AspenTech applied to AspenTech's
share of each adjustment presented herein and eliminated from
Emerson's consolidated results.
|
|
4 Represents
interest on the Copeland note receivable.
|
|
|
|
Year Ended September
30, 2023
|
|
Pretax
Earnings
|
|
Income
Taxes
|
|
Earnings
from
Cont.
Ops.
|
|
Non-Controlling
Interests3
|
|
Net
Earnings
Common
Stockholders
|
|
Diluted
Earnings
Per
Share
|
|
As reported
(GAAP)
|
$2,726
|
|
$599
|
|
$2,127
|
|
$(25)
|
|
$2,152
|
|
$3.72
|
|
Amortization of
intangibles
|
678
|
1
|
156
|
|
522
|
|
166
|
|
356
|
|
0.62
|
|
Restructuring and
related costs
|
92
|
2
|
13
|
|
79
|
|
1
|
|
78
|
|
0.14
|
|
Acquisition/divestiture
and related costs
|
84
|
|
7
|
|
77
|
|
—
|
|
77
|
|
0.13
|
|
Gain on subordinated
interest
|
(161)
|
|
(39)
|
|
(122)
|
|
—
|
|
(122)
|
|
(0.21)
|
|
National Instruments
investment gain
|
(56)
|
|
(13)
|
|
(43)
|
|
—
|
|
(43)
|
|
(0.07)
|
|
Interest income on
undeployed proceeds
|
(141)
|
|
(33)
|
|
(108)
|
|
—
|
|
(108)
|
|
(0.19)
|
|
Copeland equity method
investment loss
|
177
|
|
43
|
|
134
|
|
—
|
|
134
|
|
0.24
|
|
AspenTech Micromine
purchase price hedge
|
(24)
|
|
(5)
|
|
(19)
|
|
(8)
|
|
(11)
|
|
(0.02)
|
|
Russia business exit
charge
|
47
|
|
—
|
|
47
|
|
—
|
|
47
|
|
0.08
|
|
Adjusted
(Non-GAAP)
|
$3,422
|
|
$728
|
|
$2,694
|
|
$134
|
|
$2,560
|
|
$4.44
|
|
Interest expense, net
(excluding interest income on undeployed proceeds)
|
175
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from
related party4
|
(41)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
(Non-GAAP)
|
$3,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Amortization of intangibles includes $196 reported in cost of
sales.
|
|
2
Restructuring and related costs includes $20 reported in cost of
sales.
|
|
3 Represents
the non-controlling interest in AspenTech applied to AspenTech's
share of each adjustment presented herein and eliminated from
Emerson's consolidated results.
|
|
4 Represents
interest on the Copeland note receivable.
|
|
Table
7
|
|
|
EMERSON AND
SUBSIDIARIES
ASPENTECH CONTRIBUTION
TO EMERSON RESULTS SUPPLEMENTAL
(AMOUNTS IN MILLIONS
EXCEPT PER SHARE, UNAUDITED)
|
|
|
The following tables
reconcile the financial results of AspenTech reported to its
shareholders with the amounts included in Emerson's consolidated
financial results. Emerson currently owns approximately 57 percent
of the common shares outstanding of AspenTech, a separately traded
public company (NASDAQ: AZPN), and consolidates AspenTech in its
financial results. The 43 percent non-controlling interest in
AspenTech is removed from Emerson's net earnings common
stockholders through the non-controlling interest line item.
AspenTech is also one of Emerson's segments and its GAAP segment
earnings is reconciled below to its consolidated impact to clarify
that certain items are reported outside of its segment earnings
within Emerson corporate, including interest income, stock
compensation and the Micromine purchase price
hedge.
|
|
|
Quarter Ended September
30, 2023
|
|
Pretax
Earnings
|
|
Income
Taxes
(Benefit)
|
|
Earnings
from
Cont.
Ops.
|
|
Non-Controlling
Interests4
|
|
Net
Earnings
Common
Stockholders
|
|
Diluted
Earnings
Per
Share
|
|
Standalone reporting
(GAAP)
|
$(52)
|
1
|
$(17)
|
|
$(35)
|
|
|
|
|
|
|
|
Other
|
3
|
|
—
|
|
3
|
|
|
|
|
|
|
|
Reported in Emerson
consolidation (GAAP)
|
(49)
|
|
(17)
|
|
(32)
|
|
(14)
|
|
(18)
|
|
$(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
122
|
2
|
27
|
|
95
|
|
41
|
|
54
|
|
0.09
|
|
Restructuring
|
1
|
|
—
|
|
1
|
|
1
|
|
—
|
|
0.00
|
|
Adjusted
(Non-GAAP)
|
$74
|
|
$10
|
|
$64
|
|
$28
|
|
$36
|
|
$0.06
|
|
Interest
income
|
(14)
|
3
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation
|
16
|
3
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITA (Non-GAAP)
|
$76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Segment EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
earnings
|
$(49)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(14)
|
3
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation
|
16
|
3
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT
(GAAP)
|
$(47)
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
122
|
2
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITA (Non-GAAP)
|
$76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Amount
reflects AspenTech's pretax earnings for the three months ended
September 30, 2023 as reported in its quarterly earnings release
8-K.
|
|
2
Amortization of intangibles includes $48 reported in cost of
sales.
|
|
3 Reported
in Emerson corporate line items.
|
|
4 Represents
the non-controlling interest in AspenTech applied to each
adjustment presented herein and eliminated from Emerson's
consolidated results.
|
|
|
|
Year Ended September
30, 2023
|
|
Pretax
Earnings
|
|
Income
Taxes
(Benefit)
|
|
Earnings
from
Cont.
Ops.
|
|
Non-Controlling
Interests5
|
|
Net
Earnings
Common
Stockholders
|
|
Diluted
Earnings
Per
Share
|
|
Standalone reporting
(GAAP)
|
$(128)
|
1
|
$3
|
|
$(131)
|
|
|
|
|
|
|
|
Interim tax
reporting/Other
|
2
|
|
(50)
|
2
|
52
|
|
|
|
|
|
|
|
Reported in Emerson
consolidation (GAAP)
|
(126)
|
|
(47)
|
|
(79)
|
|
(35)
|
|
(44)
|
|
$(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
486
|
3
|
107
|
|
379
|
|
166
|
|
213
|
|
0.37
|
|
Restructuring
|
1
|
|
—
|
|
1
|
|
1
|
|
—
|
|
0.00
|
|
AspenTech Micromine
purchase price hedge
|
(24)
|
4
|
(5)
|
|
(19)
|
|
(8)
|
|
(11)
|
|
(0.02)
|
|
Adjusted
(Non-GAAP)
|
$337
|
|
$55
|
|
$282
|
|
$124
|
|
$158
|
|
$0.27
|
|
Interest
income
|
(41)
|
4
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation
|
84
|
4
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITA (Non-GAAP)
|
$380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Segment EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
earnings
|
$(126)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(41)
|
4
|
|
|
|
|
|
|
|
|
|
|
Stock
compensation
|
84
|
4
|
|
|
|
|
|
|
|
|
|
|
Micromine purchase
price hedge
|
(24)
|
4
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT
(GAAP)
|
$(107)
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
486
|
3
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITA (Non-GAAP)
|
$380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Amount
reflects AspenTech's pretax earnings for the twelve months ended
September 30, 2023, derived from AspenTech's results for the year
ended June 30, 2023 as reported in their Annual Report on Form
10-K, the results for the three months ended September 30, 2022 as
reported in their Form 10-Q, and the results for the three months
ended September 30, 2023 as reported in its quarterly
earnings release 8-K.
|
|
2 GAAP
income taxes reported by AspenTech differ from the amount reflected
in Emerson's consolidated financial statements due to the
application of the ASC 740 tax rules at the AspenTech entity level
in their stand-alone publicly reported financial statements as
compared to the amount computed at the Emerson consolidated
level.
|
|
3
Amortization of intangibles includes $192 reported in cost of
sales.
|
|
4 Reported
in Emerson corporate line items.
|
|
5 Represents
the non-controlling interest in AspenTech applied to each
adjustment presented herein and eliminated from Emerson's
consolidated results.
|
|
Table
8
|
|
|
SUPPLEMENTAL
INFORMATION
NI RESULTS
(AMOUNTS IN MILLIONS,
UNAUDITED)
|
|
|
The following table
provides unaudited results for NI before Emerson's acquisition on
October 11, 2023 and are not
included in Emerson's 2023 results. The figures are for
informational purposes only and are provided to show NI's
quarterly results on an Emerson fiscal calendar and comparable
segment basis. NI's future results will be reported as the
new Test & Measurement segment beginning in Q1 of
2024.
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$ 448
|
|
$ 437
|
|
$ 417
|
|
$
391
|
|
$
1,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax
Earnings
|
|
$
49
|
|
$
54
|
|
$
32
|
|
$ 34
|
|
$ 169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Expense /
(Income)
|
|
$
7
|
|
$
8
|
|
$ 10
|
|
$
9
|
|
$
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Interest and Taxes (EBIT)
|
|
$
56
|
|
$
62
|
|
$
42
|
|
$ 43
|
|
$ 203
|
|
|
% of
sales
|
|
12.6 %
|
|
14.2 %
|
|
10.0 %
|
|
11.1 %
|
|
12.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Based
Compensation1
|
|
$
18
|
|
$
15
|
|
$ 15
|
|
$ 16
|
|
$
64
|
|
|
Acquisition and Related
Costs1
|
|
$
—
|
|
$
(1)
|
|
$ 16
|
|
$
3
|
|
$
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Segment
EBIT
|
|
$
74
|
|
$
76
|
|
$
73
|
|
$ 62
|
|
$ 285
|
|
|
% of
sales
|
|
16.6 %
|
|
17.4 %
|
|
17.4 %
|
|
15.8 %
|
|
16.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
Intangibles
|
|
$
12
|
|
$
12
|
|
$ 13
|
|
$ 12
|
|
$
49
|
|
|
Restructuring and
Related Costs
|
|
$
9
|
|
$
16
|
|
$
1
|
|
$ (1)
|
|
$
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Adjusted
Segment EBITA
|
|
$
95
|
|
$ 104
|
|
$
87
|
|
$ 73
|
|
$ 359
|
|
|
% of
sales
|
|
21.1 %
|
|
23.8 %
|
|
20.9 %
|
|
18.6 %
|
|
21.2 %
|
|
|
|
1 To be
reported in Emerson corporate line items.
|
|
Reconciliations of
Non-GAAP Financial Measures & Other
|
Table
9
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP measures with the most directly comparable GAAP measure
(dollars in millions, except
per share amounts). See tables 4 through 7 for additional
non-GAAP reconciliations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FY23 Underlying
Sales Change
|
|
Final
Control
|
Measurement
& Analytical
|
Discrete
Automation
|
Safety &
Productivity
|
Intelligent
Devices
|
|
Reported
(GAAP)
|
|
8 %
|
14 %
|
(7) %
|
5 %
|
6 %
|
|
(Favorable) /
Unfavorable FX
|
|
(1) %
|
— %
|
(1) %
|
(1) %
|
(1) %
|
|
(Acquisitions)
|
|
— %
|
— %
|
— %
|
— %
|
— %
|
|
Divestitures
|
|
— %
|
1 %
|
— %
|
— %
|
1 %
|
|
Underlying
(Non-GAAP)
|
|
7 %
|
15 %
|
(8) %
|
4 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
Q4 FY23 Underlying
Sales Change
|
|
Control
Systems
&
Software
|
AspenTech
|
Software
and Control
|
|
Emerson
|
|
Reported
(GAAP)
|
|
4 %
|
(1) %
|
3 %
|
|
5 %
|
|
(Favorable) /
Unfavorable FX
|
|
(1) %
|
— %
|
(1) %
|
|
(1) %
|
|
(Acquisitions)
|
|
— %
|
— %
|
— %
|
|
— %
|
|
Divestitures
|
|
— %
|
— %
|
— %
|
|
1 %
|
|
Underlying
(Non-GAAP)
|
|
3 %
|
(1) %
|
2 %
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
Year Ended Sept 30,
2023 Underlying Sales Change
|
|
Final
Control
|
Measurement
& Analytical
|
Discrete
Automation
|
Safety &
Productivity
|
Intelligent
Devices
|
|
Reported
(GAAP)
|
|
10 %
|
12 %
|
1 %
|
(1) %
|
7 %
|
|
(Favorable) /
Unfavorable FX
|
|
2 %
|
2 %
|
2 %
|
— %
|
2 %
|
|
(Acquisitions)
|
|
— %
|
— %
|
— %
|
— %
|
— %
|
|
Divestitures
|
|
1 %
|
2 %
|
— %
|
— %
|
1 %
|
|
Underlying
(Non-GAAP)
|
|
13 %
|
16 %
|
3 %
|
(1) %
|
10 %
|
|
|
|
|
|
|
|
|
|
|
Year Ended Sept 30,
2023 Underlying Sales Change
|
|
Control
Systems
&
Software
|
AspenTech
|
Software
and Control
|
|
Emerson
|
|
Reported
(GAAP)
|
|
9 %
|
59 %
|
20 %
|
|
10 %
|
|
(Favorable) /
Unfavorable FX
|
|
1 %
|
— %
|
1 %
|
|
2 %
|
|
(Acquisitions)
|
|
— %
|
(60) %
|
(12) %
|
|
(3) %
|
|
Divestitures
|
|
1 %
|
— %
|
1 %
|
|
1 %
|
|
Underlying
(Non-GAAP)
|
|
11 %
|
(1) %
|
10 %
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
2024E November
Guidance Underlying Sales
|
|
FY24E
|
Q1
FY24E
|
|
|
|
|
Reported
(GAAP)
|
|
13% - 15.5%
|
14% - 17.5%
|
|
|
|
|
(Favorable) /
Unfavorable FX
|
|
~1%
|
~-%
|
|
|
|
|
(Acquisitions)
|
|
(10) -
(10.5)%
|
(8.5) -
(10)%
|
|
|
|
|
Divestitures
|
|
~-%
|
~1%
|
|
|
|
|
Underlying
(Non-GAAP)
|
|
4% - 6%
|
6.5% - 8.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final Control
Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$168
|
$247
|
16.7 %
|
22.9 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
65
|
38
|
6.5 %
|
3.5 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$233
|
$285
|
23.2 %
|
26.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Final Control
Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$592
|
$865
|
16.4 %
|
21.8 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
169
|
116
|
4.7 %
|
2.9 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$761
|
$981
|
21.1 %
|
24.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Measurement &
Analytical Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$250
|
$275
|
27.2 %
|
26.3 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
0
|
23
|
(0.1) %
|
2.1 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$250
|
$298
|
27.1 %
|
28.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Measurement &
Analytical Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$785
|
$936
|
24.4 %
|
26.0 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
24
|
40
|
0.8 %
|
1.1 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$809
|
$976
|
25.2 %
|
27.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Discrete Automation
Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$177
|
$131
|
24.6 %
|
19.7 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
3
|
14
|
(0.5) %
|
2.1 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$180
|
$145
|
24.1 %
|
21.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Discrete Automation
Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$542
|
$509
|
20.7 %
|
19.3 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
30
|
56
|
1.2 %
|
2.1 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$572
|
$565
|
21.9 %
|
21.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Safety &
Productivity Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$51
|
$78
|
15.1 %
|
21.9 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
16
|
5
|
4.8 %
|
1.6 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$67
|
$83
|
19.9 %
|
23.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Safety &
Productivity Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$250
|
$306
|
17.8 %
|
22.0 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
36
|
26
|
2.5 %
|
1.9 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$286
|
$332
|
20.3 %
|
23.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Intelligent Devices
Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$646
|
$731
|
21.7 %
|
23.2 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
84
|
80
|
2.8 %
|
2.6 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$730
|
$811
|
24.5 %
|
25.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Intelligent Devices
Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$2,169
|
$2,616
|
20.0 %
|
22.6 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
259
|
238
|
2.4 %
|
2.0 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$2,428
|
$2,854
|
22.4 %
|
24.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Control Systems
& Software Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$143
|
$151
|
20.8 %
|
21.1 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
9
|
7
|
1.2 %
|
1.1 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$152
|
$158
|
22.0 %
|
22.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Control Systems
& Software Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$437
|
$529
|
18.2 %
|
20.3 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
33
|
31
|
1.4 %
|
1.2 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$470
|
$560
|
19.6 %
|
21.5 %
|
|
|
|
|
|
|
|
|
|
|
|
AspenTech Adjusted
EBITA
|
|
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$(39)
|
$(47)
|
(15.2) %
|
(18.7) %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
120
|
123
|
48.1 %
|
48.9 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$81
|
$76
|
32.9 %
|
30.2 %
|
|
|
|
|
|
|
|
|
|
|
|
AspenTech Adjusted
EBITA
|
|
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$12
|
$(107)
|
1.9 %
|
(10.3) %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
237
|
487
|
36.1 %
|
46.7 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$249
|
$380
|
38.0 %
|
36.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Software and Control
Adjusted EBITA
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
|
$104
|
$104
|
11.2 %
|
10.8 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
129
|
130
|
13.7 %
|
13.5 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$233
|
$234
|
24.9 %
|
24.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Software and Control
Adjusted EBITA
|
|
FY22
|
FY23
|
FY22
|
FY23
|
|
|
Business Segment EBIT /
EBIT margin (GAAP)
|
$449
|
$422
|
14.7 %
|
11.6 %
|
|
|
Amortization of
intangibles and restructuring and related costs
|
|
270
|
518
|
8.8 %
|
14.2 %
|
|
|
Adjusted Business
Segment EBITA / EBITA margin (Non-GAAP)
|
|
$719
|
$940
|
23.5 %
|
25.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Total Business
Segment Adjusted EBITA Margin
|
|
Q4
2022
|
Q4
2023
|
Q4
2022
|
Q4
2023
|
Change
|
|
Pretax earnings /
margin (GAAP)
|
|
$603
|
$904
|
15.5 %
|
22.1 %
|
660 bps
|
|
Corporate items and
interest expense, net
|
147
|
(69)
|
3.8 %
|
(1.7) %
|
(550) bps
|
|
Total Business Segment
EBIT / margin
|
|
$750
|
$835
|
19.3 %
|
20.4 %
|
110 bps
|
|
Amortization of
intangibles and restructuring and related costs
|
$213
|
$210
|
5.4 %
|
5.1 %
|
(30) bps
|
|
Adjusted Total Business
Segment EBITA / margin (Non-GAAP)
|
$963
|
$1,045
|
24.7 %
|
25.5 %
|
80 bps
|
|
|
|
|
|
|
|
|
|
|
Total Business
Segment Adjusted EBITA Margin
|
|
FY22
|
FY23
|
FY22
|
FY23
|
Change
|
|
Pretax earnings /
margin (GAAP)
|
|
$2,432
|
$2,726
|
17.6 %
|
18.0 %
|
40 bps
|
|
Corporate items and
interest expense, net
|
186
|
312
|
1.4 %
|
2.0 %
|
60 bps
|
|
Total Business Segment
EBIT / margin
|
|
$2,618
|
$3,038
|
19.0 %
|
20.0 %
|
100 bps
|
|
Amortization of
intangibles and restructuring and related costs
|
$529
|
$756
|
3.8 %
|
5.0 %
|
120 bps
|
|
Adjusted Total Business
Segment EBITA / margin (Non-GAAP)
|
$3,147
|
$3,794
|
22.8 %
|
25.0 %
|
220 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flow
|
|
|
|
Q4
FY22
|
Q4
FY23
|
Change
|
|
|
|
Operating cash flow
(GAAP)
|
|
|
|
$813
|
$1,007
|
24 %
|
|
|
|
Capital
expenditures
|
|
|
|
(100)
|
(169)
|
(7) %
|
|
|
|
Free cash flow
(Non-GAAP)
|
|
|
|
$713
|
$838
|
17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flow
|
|
|
|
FY22
|
FY23
|
Change
|
|
FY24E
($ in
billions)
|
|
Operating cash flow
(GAAP)
|
|
|
|
$2,048
|
$2,726
|
33 %
|
|
$3.0 - $3.1
|
|
Capital
expenditures
|
|
|
|
(299)
|
(363)
|
2 %
|
|
~(0.4)
|
|
Free cash flow
(Non-GAAP)
|
|
|
|
$1,749
|
$2,363
|
35 %
|
|
$2.6 - $2.7
|
|
|
|
|
|
|
|
|
|
|
Note 1: Underlying
sales and orders exclude the impact of significant acquisitions,
divestitures and currency translation.
|
|
Note 2: All fiscal year
2024E figures are approximate, except where range is
given.
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View original content to download
multimedia:https://www.prnewswire.com/news-releases/emerson-reports-fourth-quarter-and-full-year-2023-results-provides-initial-2024-outlook-301979458.html
SOURCE Emerson