08/07/2024 | Press release | Distributed by Public on 08/07/2024 04:56
(dollars in millions, except per share) | 2023 Q3 | 2024 Q3 | Change |
Underlying Orders2
|
3% | ||
Net Sales | $3,946 | $4,380 | 11% |
Underlying Sales3
|
3% | ||
Pretax Earnings | $822 | $455 | |
Margin | 20.8% | 10.4% | (1040) bps |
Adjusted Segment EBITA4
|
$1,060 | $1,189 | |
Margin | 26.9% | 27.1% | 20 bps |
GAAP Earnings Per Share | $1.12 | $0.60 | (46)% |
Adjusted Earnings Per Share5
|
$1.29 | $1.43 | 11% |
Operating Cash Flow | $842 | $1,067 | 27% |
Free Cash Flow | $769 | $975 | 27% |
2024 | |
Net Sales Growth | ~15% |
Underlying Sales Growth | ~6% |
Earnings Per Share | $2.82 - $2.87 |
Amortization of Intangibles | ~$1.42 |
Restructuring and Related Costs | ~$0.34 |
Loss on Copeland Note Receivable | $0.38 |
Amortization of Acquisition-related Inventory Step-up | $0.38 |
Acquisition / Divestiture Fees and Related Costs | ~$0.24 |
Divestiture Loss / (Gain), net | ($0.03) |
Discrete Tax Benefits | ($0.10) |
Adjusted Earnings Per Share | $5.45 - $5.50 |
Operating Cash Flow | ~$3.2B |
Free Cash Flow | ~$2.8B |
Investors: | Media: |
Colleen Mettler | Joseph Sala / Greg Klassen |
(314) 553-2197 | Joele Frank, Wilkinson Brimmer Katcher |
(212) 355-4449 |
Table 1 | ||||||||
EMERSON AND SUBSIDIARIES | ||||||||
CONSOLIDATED OPERATING RESULTS | ||||||||
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) | ||||||||
Quarter Ended June 30, |
Nine Months Ended June 30, | |||||||
2023 | 2024 | 2023 | 2024 | |||||
Net sales | $ | 3,946 | $ | 4,380 | $ | 11,075 | $ | 12,873 |
Cost of sales | 1,952 | 2,066 | 5,660 | 6,359 | ||||
SG&A expenses | 1,042 | 1,254 | 3,072 | 3,827 | ||||
Gain on subordinated interest | - | - | - | (79) | ||||
Loss on Copeland note receivable | - | 279 | - | 279 | ||||
Other deductions, net | 130 | 294 | 359 | 1,075 | ||||
Interest expense, net | 10 | 56 | 111 | 157 | ||||
Interest income from related party1
|
(10) | (24) | (10) | (86) | ||||
Earnings from continuing operations before income taxes | 822 | 455 | 1,883 | 1,341 | ||||
Income taxes | 168 | 88 | 400 | 266 | ||||
Earnings from continuing operations | 654 | 367 | 1,483 | 1,075 | ||||
Discontinued operations, net of tax | 8,712 | (15) | 10,979 | (88) | ||||
Net earnings | 9,366 | 352 | 12,462 | 987 | ||||
Less: Noncontrolling interests in subsidiaries | 14 | 23 | (13) | 15 | ||||
Net earnings common stockholders | $ | 9,352 | $ | 329 | $ | 12,475 | $ | 972 |
Earnings common stockholders | ||||||||
Earnings from continuing operations | $ | 643 | $ | 344 | $ | 1,502 | $ | 1,060 |
Discontinued operations | 8,709 | (15) | 10,973 | (88) | ||||
Net earnings common stockholders | $ | 9,352 | $ | 329 | $ | 12,475 | $ | 972 |
Diluted avg. shares outstanding | 574.0 | 574.8 | 578.1 | 574.1 | ||||
Diluted earnings per share common stockholders | ||||||||
Earnings from continuing operations | $1.12 | $0.60 | $2.60 | $1.84 | ||||
Discontinued operations | 15.16 | (0.03) | 18.96 | (0.15) | ||||
Diluted earnings per common share | $16.28 | $0.57 | $21.56 | $1.69 | ||||
Quarter Ended June 30, |
Nine Months Ended June 30, | |||||||
2023 | 2024 | 2023 | 2024 | |||||
Other deductions, net | ||||||||
Amortization of intangibles | $120 | $264 | $357 | $811 | ||||
Restructuring costs | 12 | 57 | 41 | 170 | ||||
Other | (2) | (27) | (39) | 94 | ||||
Total | $130 | $294 | $359 | $1,075 | ||||
1 Represents interest on the Copeland note receivable through June 6, 2024.
|
Table 2 | ||||
EMERSON AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(DOLLARS IN MILLIONS, UNAUDITED) | ||||
Sept 30, 2023 | June 30, 2024 | |||
Assets | ||||
Cash and equivalents | $ | 8,051 | $ | 2,298 |
Receivables, net | 2,518 | 2,761 | ||
Inventories | 2,006 | 2,303 | ||
Other current assets | 1,244 | 1,458 | ||
Total current assets | 13,819 | 8,820 | ||
Property, plant & equipment, net | 2,363 | 2,688 | ||
Goodwill | 14,480 | 17,936 | ||
Other intangible assets | 6,263 | 10,627 | ||
Copeland note receivable and equity investment held-for-sale | 3,255 | 2,908 | ||
Other | 2,566 | 2,606 | ||
Total assets | $ | 42,746 | $ | 45,585 |
Liabilities and equity | ||||
Short-term borrowings and current maturities of long-term debt | $ | 547 | $ | 2,991 |
Accounts payable | 1,275 | 1,251 | ||
Accrued expenses | 3,210 | 3,350 | ||
Total current liabilities | 5,032 | 7,592 | ||
Long-term debt | 7,610 | 7,111 | ||
Other liabilities | 3,506 | 4,194 | ||
Equity | ||||
Common stockholders' equity | 20,689 | 20,799 | ||
Noncontrolling interests in subsidiaries | 5,909 | 5,889 | ||
Total equity | 26,598 | 26,688 | ||
Total liabilities and equity | $ | 42,746 | $ | 45,585 |
Table 3 | ||||
EMERSON AND SUBSIDIARIES | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(DOLLARS IN MILLIONS, UNAUDITED) | ||||
Nine Months Ended June 30, | ||||
2023 | 2024 | |||
Operating activities | ||||
Net earnings | $ | 12,462 | $ | 987 |
Earnings from discontinued operations, net of tax | (10,979) | 88 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 780 | 1,263 | ||
Stock compensation | 198 | 203 | ||
Amortization of acquisition-related inventory step-up | - | 231 | ||
Gain on subordinated interest | - | (79) | ||
Loss on Copeland note receivable | - | 279 | ||
Changes in operating working capital | (359) | (176) | ||
Other, net | (383) | (552) | ||
Cash from continuing operations | 1,719 | 2,244 | ||
Cash from discontinued operations | (439) | 4 | ||
Cash provided by operating activities | 1,280 | 2,248 | ||
Investing activities | ||||
Capital expenditures | (194) | (251) | ||
Purchases of businesses, net of cash and equivalents acquired | - | (8,342) | ||
Proceeds from subordinated interest | 15 | 79 | ||
Proceeds from related party note receivable | 918 | - | ||
Other, net | (124) | (86) | ||
Cash from continuing operations | 615 | (8,600) | ||
Cash from discontinued operations | 12,485 | 36 | ||
Cash provided by (used in) investing activities | 13,100 | (8,564) | ||
Financing activities | ||||
Net increase (decrease) in short-term borrowings | (1,476) | 2,229 | ||
Proceeds from short-term borrowings greater than three months | 395 | 322 | ||
Payments of short-term borrowings greater than three months | (400) | (100) | ||
Payments of long-term debt | (744) | (547) | ||
Dividends paid | (900) | (901) | ||
Purchases of common stock | (2,000) | (175) | ||
AspenTech purchases of common stock | (100) | (188) | ||
Payment of related party note payable | (918) | - | ||
Other, net | (159) | (57) | ||
Cash provided by (used in) financing activities | (6,302) | 583 | ||
Effect of exchange rate changes on cash and equivalents | 75 | (20) | ||
Increase (decrease) in cash and equivalents | 8,153 | (5,753) | ||
Beginning cash and equivalents | 1,804 | 8,051 | ||
Ending cash and equivalents | $ | 9,957 | $ | 2,298 |
Table 4 |
EMERSON AND SUBSIDIARIES |
SEGMENT SALES AND EARNINGS |
(DOLLARS IN MILLIONS, UNAUDITED) |
Quarter Ended June 30, | ||||||||
2023 | 2024 | Reported | Underlying | |||||
Sales | ||||||||
Final Control | $ | 1,035 | $ | 1,046 | 1 | % | 2 | % |
Measurement & Analytical | 913 | 982 | 8 | % | 9 | % | ||
Discrete Automation | 668 | 618 | (8) | % | (6) | % | ||
Safety & Productivity | 363 | 351 | (3) | % | (3) | % | ||
Intelligent Devices | $ | 2,979 | $ | 2,997 | 1 | % | 2 | % |
Control Systems & Software | 663 | 700 | 6 | % | 7 | % | ||
Test & Measurement | - | 355 | ||||||
AspenTech | 320 | 343 | 7 | % | 7 | % | ||
Software and Control | $ | 983 | $ | 1,398 | 42 | % | 7 | % |
Eliminations | (16) | (15) | ||||||
Total | $ | 3,946 | $ | 4,380 | 11 | % | 3 | % |
Sales Growth by Geography | ||
Quarter Ended June 30, | ||
Americas | 3 | % |
Europe | 4 | % |
Asia, Middle East & Africa | 2 | % |
Table 4 cont. |
Nine Months Ended June 30, | ||||||||
2023 | 2024 | Reported | Underlying | |||||
Sales | ||||||||
Final Control | $ | 2,889 | $ | 3,037 | 5 | % | 6 | % |
Measurement & Analytical | 2,550 | 2,942 | 15 | % | 17 | % | ||
Discrete Automation | 1,969 | 1,863 | (5) | % | (5) | % | ||
Safety & Productivity | 1,034 | 1,038 | - | % | - | % | ||
Intelligent Devices | $ | 8,442 | $ | 8,880 | 5 | % | 6 | % |
Control Systems & Software | 1,892 | 2,062 | 9 | % | 10 | % | ||
Test & Measurement | - | 1,104 | ||||||
AspenTech | 793 | 878 | 11 | % | 11 | % | ||
Software and Control | $ | 2,685 | $ | 4,044 | 51 | % | 10 | % |
Eliminations | (52) | (51) | ||||||
Total | $ | 11,075 | $ | 12,873 | 16 | % | 7 | % |
Sales Growth by Geography | ||
Nine Months Ended June 30, | ||
Americas | 5 | % |
Europe | 9 | % |
Asia, Middle East & Africa | 9 | % |
Table 4 cont. |
Quarter Ended June 30, | Quarter Ended June 30, | |||||||
2023 | 2024 | |||||||
As Reported (GAAP) |
Adjusted EBITA (Non-GAAP) |
As Reported (GAAP) |
Adjusted EBITA (Non-GAAP) |
|||||
Earnings | ||||||||
Final Control | $ | 245 | $ | 266 | $ | 253 | $ | 279 |
Margins | 23.7 | % | 25.7 | % | 24.2 | % | 26.8 | % |
Measurement & Analytical | 257 | 263 | 252 | 266 | ||||
Margins | 28.1 | % | 28.7 | % | 25.6 | % | 27.0 | % |
Discrete Automation | 124 | 144 | 109 | 134 | ||||
Margins | 18.5 | % | 21.4 | % | 17.6 | % | 21.5 | % |
Safety & Productivity | 82 | 88 | 79 | 86 | ||||
Margins | 22.7 | % | 24.3 | % | 22.5 | % | 24.7 | % |
Intelligent Devices | $ | 708 | $ | 761 | $ | 693 | $ | 765 |
Margins | 23.7 | % | 25.5 | % | 23.1 | % | 25.5 | % |
Control Systems & Software | 144 | 151 | 168 | 178 | ||||
Margins | 21.8 | % | 22.8 | % | 23.9 | % | 25.2 | % |
Test & Measurement | - | - | (88) | 76 | ||||
Margins | (24.7) | % | 21.4 | % | ||||
AspenTech | 27 | 148 | 49 | 170 | ||||
Margins | 8.2 | % | 46.1 | % | 14.5 | % | 50.0 | % |
Software and Control | $ | 171 | $ | 299 | $ | 129 | $ | 424 |
Margins | 17.4 | % | 30.4 | % | 9.2 | % | 30.3 | % |
Corporate items and interest expense, net:
|
||||||||
Stock compensation | (56) | (56) | (56) | (47) | ||||
Unallocated pension and postretirement costs | 42 | 42 | 38 | 38 | ||||
Corporate and other | (43) | (19) | (38) | (24) | ||||
Gain on subordinated interest | - | - | - | - | ||||
Loss on Copeland note receivable | - | - | (279) | - | ||||
Interest expense, net | (10) | - | (56) | - | ||||
Interest income from related party1
|
10 | - | 24 | - | ||||
Pretax Earnings / Adjusted EBITA | $ | 822 | $ | 1,027 | $ | 455 | $ | 1,156 |
Margins | 20.8 | % | 26.0 | % | 10.4 | % | 26.4 | % |
Supplemental Total Segment Earnings: | ||||||||
Adjusted Total Segment EBITA | $ | 1,060 | $ | 1,189 | ||||
Margins | 26.9 | % | 27.1 | % | ||||
1 Represents interest on the Copeland note receivable through June 6, 2024.
|
Table 4 cont. |
Quarter Ended June 30, | Quarter Ended June 30, | |||||||
2023 | 2024 | |||||||
Amortization of
Intangibles1
|
Restructuring
and
Related Costs2
|
Amortization of
Intangibles1
|
Restructuring
and
Related Costs2
|
|||||
Final Control | $ | 22 | $ | (1) | $ | 21 | $ | 5 |
Measurement & Analytical | 5 | 1 | 11 | 3 | ||||
Discrete Automation | 8 | 12 | 9 | 16 | ||||
Safety & Productivity | 7 | (1) | 6 | 1 | ||||
Intelligent Devices | $ | 42 | $ | 11 | $ | 47 | $ | 25 |
Control Systems & Software | 6 | 1 | 6 | 4 | ||||
Test & Measurement | - | - | 139 | 25 | ||||
AspenTech | 121 | - | 121 | - | ||||
Software and Control | $ | 127 | $ | 1 | $ | 266 | $ | 29 |
Corporate | - | 1 | - | 6 | 3 | |||
Total | $ | 169 | $ | 13 | $ | 313 | $ | 60 |
1 Amortization of intangibles includes $49 and $49 reported in cost of sales for the three months ended June 30, 2023 and 2024, respectively.
|
||||||||
2 Restructuring and related costs includes $1 and $3 reported in cost of sales and selling, general and administrative expenses for the three months ended June 30, 2023 and 2024, respectively.
|
||||||||
3 Corporate restructuring of $6 for the three months ended June 30, 2024 includes $5 related to integration-related stock compensation expense attributable to NI.
|
Quarter Ended June 30, | ||||
Depreciation and Amortization | 2023 | 2024 | ||
Final Control | $ | 39 | $ | 41 |
Measurement & Analytical | 26 | 32 | ||
Discrete Automation | 20 | 22 | ||
Safety & Productivity | 15 | 14 | ||
Intelligent Devices | 100 | 109 | ||
Control Systems & Software | 22 | 26 | ||
Test & Measurement | - | 150 | ||
AspenTech | 123 | 122 | ||
Software and Control | 145 | 298 | ||
Corporate | 12 | 10 | ||
Total | $ | 257 | $ | 417 |
Table 5 |
EMERSON AND SUBSIDIARIES |
ADJUSTED CORPORATE AND OTHER SUPPLEMENTAL |
(DOLLARS IN MILLIONS, UNAUDITED) |
Quarter Ended June 30, | ||||
2023 | 2024 | |||
Stock compensation (GAAP) | $ | (56) | $ | (56) |
Integration-related stock compensation expense | - | 9 | 1 | |
Adjusted stock compensation (non-GAAP) | $ | (56) | $ | (47) |
Quarter Ended June 30, | ||||
2023 | 2024 | |||
Corporate and other (GAAP) | $ | (43) | $ | (38) |
Corporate restructuring and related costs | 1 | 1 | ||
Acquisition / divestiture costs | 38 | 13 | ||
National Instruments investment gain | (12) | - | ||
AspenTech Micromine purchase price hedge | (3) | - | ||
Adjusted corporate and other (non-GAAP) | $ | (19) | $ | (24) |
1 Integration-related stock compensation expense relates to NI and includes $5 reported as restructuring costs.
|
Table 6 |
EMERSON AND SUBSIDIARIES |
ADJUSTED EBITA & EPS SUPPLEMENTAL |
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) |
Quarter Ended June 30, | ||||
2023 | 2024 | |||
Pretax earnings | $ | 822 | $ | 455 |
Percent of sales | 20.8 | % | 10.4 | % |
Interest expense, net | 10 | 56 | ||
Interest income from related party1
|
(10) | (24) | ||
Amortization of intangibles | 169 | 313 | ||
Restructuring and related costs | 13 | 60 | ||
Acquisition/divestiture fees and related costs | 38 | 17 | ||
National Instruments investment gain | (12) | - | ||
AspenTech Micromine purchase price hedge | (3) | - | ||
Loss on Copeland note receivable | - | 279 | ||
Adjusted EBITA | $ | 1,027 | $ | 1,156 |
Percent of sales | 26.0 | % | 26.4 | % |
Quarter Ended June 30, | ||||
2023 | 2024 | |||
GAAP earnings from continuing operations per share | $ | 1.12 | $ | 0.60 |
Amortization of intangibles | 0.15 | 0.35 | ||
Restructuring and related costs | 0.02 | 0.08 | ||
Acquisition/divestiture fees and related costs | 0.07 | 0.02 | ||
National Instruments investment gain | (0.02) | - | ||
Interest income on undeployed proceeds from Copeland transaction | (0.05) | - | ||
Loss on Copeland note receivable | - | 0.38 | ||
Adjusted earnings from continuing operations per share | $ | 1.29 | $ | 1.43 |
Less: AspenTech contribution to adjusted earnings per share | (0.11) | (0.14) | ||
Adjusted earnings per share excluding AspenTech contribution | $ | 1.18 | $ | 1.29 |
1 Represents interest on the Copeland note receivable through June 6, 2024.
|
Table 6 cont. |
Quarter Ended June 30, 2024 | ||||||||||||
Pretax Earnings |
Income Taxes |
Earnings from Cont. Ops. |
Non-Controlling
Interests3
|
Net Earnings Common Stockholders |
Diluted Earnings Per Share |
|||||||
As reported (GAAP) | $ | 455 | $ | 88 | $ | 367 | $ | 23 | $ | 344 | $ | 0.60 |
Amortization of intangibles | 313 | 1 | 74 | 239 | 40 | 199 | 0.35 | |||||
Restructuring and related costs | 60 | 2 | 14 | 46 | - | 46 | 0.08 | |||||
Acquisition/divestiture fees and related costs | 17 | 2 | 15 | - | 15 | 0.02 | ||||||
Loss on Copeland note receivable | 279 | 62 | 217 | - | 217 | 0.38 | ||||||
Adjusted (non-GAAP) | $ | 1,124 | $ | 240 | $ | 884 | $ | 63 | $ | 821 | $ | 1.43 |
Interest expense, net | 56 | |||||||||||
Interest income from related party4
|
(24) | |||||||||||
Adjusted EBITA (non-GAAP) | $ | 1,156 | ||||||||||
1 Amortization of intangibles includes $49 reported in cost of sales.
|
||||||||||||
2 Restructuring and related costs includes $3 reported in cost of sales and selling, general and administrative expenses.
|
||||||||||||
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 through June 6, 2024.
|
Table 7 |
EMERSON AND SUBSIDIARIES |
ASPENTECH CONTRIBUTION TO EMERSON RESULTS SUPPLEMENTAL |
(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED) |
Quarter Ended June 30, 2024 | ||||||||||||
Pretax Earnings |
Income Taxes (Benefit) |
Earnings from Cont. Ops. |
Non-Controlling
Interests4
|
Net Earnings Common Stockholders |
Diluted Earnings Per Share |
|||||||
Standalone reporting (GAAP) | $ | 53 | 1 | $ | 8 | $ | 45 | |||||
Other | (1) | (5) | 4 | |||||||||
Reported in Emerson consolidation (GAAP) | 52 | 3 | 49 | 21 | 28 | $ | 0.05 | |||||
Adjustments: | ||||||||||||
Amortization of intangibles | 121 | 2 | 27 |
|
94 | 40 | 54 | 0.09 | ||||
Adjusted (Non-GAAP) | $ | 173 | $ | 30 | $ | 143 | $ | 61 | $ | 82 | $ | 0.14 |
Interest income | (14) | 3 | ||||||||||
Stock compensation | 11 | 3 | ||||||||||
Adjusted segment EBITA (non-GAAP) | $ | 170 | ||||||||||
Reconciliation to Segment EBIT | ||||||||||||
Pre-tax earnings | $ | 52 | ||||||||||
Interest income | (14) | 3 | ||||||||||
Stock compensation | 11 | 3 | ||||||||||
Segment EBIT (GAAP) | $ | 49 | ||||||||||
Amortization of intangibles | 121 | 2 | ||||||||||
Adjusted segment EBITA (non-GAAP) | $ | 170 | ||||||||||
1 Amount reflects AspenTech's pretax earnings for the three months ended June 30, 2024 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.
|
Reconciliations of Non-GAAP Financial Measures & Other | Table 8 |
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.
|
2024 Q3 Underlying Sales Change | Reported | (Favorable) / Unfavorable FX |
(Acquisitions) / Divestitures |
Underlying | ||||
Final Control | 1 | % | 1 | % | - | % | 2 | % |
Measurement & Analytical | 8 | % | 1 | % | - | % | 9 | % |
Discrete Automation | (8) | % | 2 | % | - | % | (6) | % |
Safety & Productivity | (3) | % | - | % | - | % | (3) | % |
Intelligent Devices | 1 | % | 1 | % | - | % | 2 | % |
Control Systems & Software | 6 | % | 1 | % | - | % | 7 | % |
Test & Measurement | ||||||||
AspenTech | 7 | % | - | % | - | % | 7 | % |
Software and Control | 42 | % | 1 | % | (36) | % | 7 | % |
Emerson | 11 | % | 1 | % | (9) | % | 3 | % |
Nine Months Ended June 30, 2024 Underlying Sales Change | Reported | (Favorable) / Unfavorable FX |
(Acquisitions) / Divestitures |
Underlying | ||||
Final Control | 5 | % | 1 | % | - | % | 6 | % |
Measurement & Analytical | 15 | % | 1 | % | 1 | % | 17 | % |
Discrete Automation | (5) | % | - | % | - | % | (5) | % |
Safety & Productivity | - | % | - | % | - | % | - | % |
Intelligent Devices | 5 | % | 1 | % | - | % | 6 | % |
Control Systems & Software | 9 | % | - | % | 1 | % | 10 | % |
Test & Measurement | ||||||||
AspenTech | 11 | % | - | % | - | % | 11 | % |
Software and Control | 51 | % | - | % | (41) | % | 10 | % |
Emerson | 16 | % | 1 | % | (10) | % | 7 | % |
Underlying Growth Guidance |
2024 Guidance |
Reported (GAAP) | ~15% |
(Favorable) / Unfavorable FX | ~0.5 pts |
(Acquisitions) / Divestitures | ~(9.5) pts |
Underlying (non-GAAP) | ~6% |
2023 Q3 Adjusted Segment EBITA | EBIT |
EBIT Margin |
Amortization of Intangibles |
Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||
Final Control | $ | 245 | 23.7 | % | $ | 22 | $ | (1) | $ | 266 | 25.7 | % |
Measurement & Analytical | 257 | 28.1 | % | 5 | 1 | 263 | 28.7 | % | ||||
Discrete Automation | 124 | 18.5 | % | 8 | 12 | 144 | 21.4 | % | ||||
Safety & Productivity | 82 | 22.7 | % | 7 | (1) | 88 | 24.3 | % | ||||
Intelligent Devices | $ | 708 | 23.7 | % | $ | 42 | $ | 11 | $ | 761 | 25.5 | % |
Control Systems & Software | 144 | 21.8 | % | 6 | 1 | 151 | 22.8 | % | ||||
Test & Measurement | - | - | % | - | - | - | - | % | ||||
AspenTech | 27 | 8.2 | % | 121 | - | 148 | 46.1 | % | ||||
Software and Control | $ | 171 | 17.4 | % | $ | 127 | $ | 1 | $ | 299 | 30.4 | % |
2024 Q3 Adjusted Segment EBITA | EBIT |
EBIT Margin |
Amortization of Intangibles |
Restructuring and Related Costs | Adjusted Segment EBITA | Adjusted Segment EBITA Margin | ||||||
Final Control | $ | 253 | 24.2 | % | $ | 21 | $ | 5 | $ | 279 | 26.8 | % |
Measurement & Analytical | 252 | 25.6 | % | 11 | 3 | 266 | 27.0 | % | ||||
Discrete Automation | 109 | 17.6 | % | 9 | 16 | 134 | 21.5 | % | ||||
Safety & Productivity | 79 | 22.5 | % | 6 | 1 | 86 | 24.7 | % | ||||
Intelligent Devices | $ | 693 | 23.1 | % | $ | 47 | $ | 25 | $ | 765 | 25.5 | % |
Control Systems & Software | 168 | 23.9 | % | 6 | 4 | 178 | 25.2 | % | ||||
Test & Measurement | (88) | (24.7) | % | 139 | 25 | 76 | 21.4 | % | ||||
AspenTech | 49 | 14.5 | % | 121 | - | 170 | 50.0 | % | ||||
Software and Control | $ | 129 | 9.2 | % | $ | 266 | $ | 29 | $ | 424 | 30.3 | % |
Total Adjusted Segment EBITA | 2023 Q3 | 2024 Q3 | ||
Pretax earnings (GAAP) | $ | 822 | $ | 455 |
Margin | 20.8 | % | 10.4 | % |
Corporate items and interest expense, net | 57 | 367 | ||
Amortization of intangibles | 169 | 313 | ||
Restructuring and related costs | 12 | 54 | ||
Adjusted segment EBITA (non-GAAP) | $ | 1,060 | $ | 1,189 |
Margin | 26.9 | % | 27.1 | % |
Free Cash Flow | 2023 Q3 | 2024 Q3 |
2024E ($ in billions) |
||
Operating cash flow (GAAP) | $ | 842 | $ | 1,067 | ~$3.2 |
Capital expenditures | (73) | (92) | ~(0.4) | ||
Free cash flow (non-GAAP) | $ | 769 | $ | 975 | ~$2.8 |
Note 1: Underlying sales and orders exclude the impact of currency translation and significant acquisitions and divestitures. |
Note 2: All fiscal year 2024E figures are approximate, except where range is given. |