Emerson today reported results for the second quarter of the company’s fiscal year ended March 31, 2023, and updated its full-year guidance for continuing operations.

PM851AK01 Emerson also announced a quarterly cash dividend of $0.52 per common share to shareholders of record as of May 12, 2023, payable on June 9, 2023.
• Base order rate up 7%
Net sales for the second quarter were approximately $3.76 billion, up 14% year-over-year, with underlying sales up 14%
• Pre-tax margin for the quarter was 17%, up 150 basis points
• Adjusted EBITA was 24.6%, up 320 basis points
•GAAP earnings per share were $0.92, up 28% year-over-year
• Adjusted GAAP earnings per share were $1.09, up 25% year-over-year
Cash flow from operations in the second quarter was $575 million, up 51% year-over-year
Free cash flow was $513 million, up 64 percent year over year

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PM851AK01 Lal Karsanbhai, President and Chief Executive Officer of Emerson, said: “Emerson’s strong second quarter results were driven by strong demand in our end markets and superior operational execution by our global teams, with underlying sales growth, operating leverage and earnings all exceeding our expectations. It is also a testament to the power of our people, technology and Emerson Management Systems.

As Emerson accelerates its growth as a leading automation company, we continue to build on our strategic vision, including the recent definitive agreement to acquire NI Instruments, a leader in test and measurement automation, whose best-in class technology and software will accelerate Emerson’s drive to build a more cohesive, higher growth and more profitable automation portfolio. Realize Emerson’s diversified strength to access attractive discrete markets.”

Fy2023 full year forecast

Following the announcement of the Environmental Technologies PM851AK01 divestiture, which is expected to close this quarter on May 31, Emerson’s continuing operations will include interest income of $2.25 billion on Environmental Technologies notes receivable and a gain or loss recognizing 45 percent of common Stockholders’ equity. The 2023 forecast also reflects the return of $2 billion to shareholders through share repurchases in the first quarter and the distribution of a dividend of approximately $1.2 billion.