Emerson Reports Second Quarter 2021 Results, Raises 2021 Outlook

 

 

 

 

 

 

Table 2

EMERSON AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE, UNAUDITED)

 

 

 

 

 

 

 

 

 

Six Months Ended March 31

 

Percent

 

 

2020

 

2021

 

Change

 

 

 

 

 

 

 

Net sales

 

$8,313

 

 

$8,592

 

 

3%

Costs and expenses:

 

 

 

 

 

 

Cost of sales

 

4,804

 

 

5,007

 

 

 

SG&A expenses

 

2,106

 

 

2,052

 

 

 

Other deductions, net

 

220

 

 

155

 

 

 

Interest expense, net

 

71

 

 

78

 

 

 

Earnings before income taxes

 

1,112

 

 

1,300

 

 

17%

Income taxes

 

259

 

 

280

 

 

 

Net earnings

 

853

 

 

1,020

 

 

 

Less: Noncontrolling interests in earnings of subsidiaries

 

10

 

 

14

 

 

 

Net earnings common stockholders

 

$843

 

 

$1,006

 

 

19%

 

 

 

 

 

 

 

Diluted avg. shares outstanding

 

612.6

 

 

602.3

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share common share

 

$1.37

 

 

$1.67

 

 

22%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended March 31

 

 

 

 

2020

 

2021

 

 

Other deductions, net

 

 

 

 

 

 

Amortization of intangibles

 

$118

 

 

$152

 

 

 

Restructuring costs

 

128

 

 

83

 

 

 

Special advisory fees

 

13

 

 

 

 

 

Other

 

(39)

 

 

(80)

 

 

 

Total

 

$220

 

 

$155

 

 

 

 

 

 

Table 3

EMERSON AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

Quarter Ended March 31

 

2020

 

2021

Assets

 

 

 

Cash and equivalents

$2,583

 

 

$2,342

 

Receivables, net

2,641

 

 

2,754

 

Inventories

2,058

 

 

2,016

 

Other current assets

750

 

 

849

 

Total current assets

8,032

 

 

7,961

 

Property, plant & equipment, net

3,553

 

 

3,663

 

Goodwill

6,520

 

 

7,787

 

Other intangible assets

2,498

 

 

3,095

 

Other

1,108

 

 

1,294

 

Total assets

$21,711

 

 

$23,800

 

 

 

 

 

Liabilities and equity

 

 

 

Short-term borrowings and current maturities of long-term debt

$3,741

 

 

$1,456

 

Accounts payable

1,521

 

 

1,797

 

Accrued expenses

2,678

 

 

3,041

 

Total current liabilities

7,940

 

 

6,294

 

Long-term debt

3,960

 

 

5,823

 

Other liabilities

2,248

 

 

2,503

 

Total equity

7,563

 

 

9,180

 

Total liabilities and equity

$21,711

 

 

$23,800

 

 

 

 

 

 

Table 4

EMERSON AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended March 31

 

 

 

2020

 

2021

Operating activities

 

 

 

 

 

Net earnings

 

 

$853

 

$1,020

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

 

422

 

483

Stock compensation

 

 

18

 

125

Pension expense

 

 

34

 

16

Changes in operating working capital

 

 

(260)

 

66

Other, net

 

 

(55)

 

(95)

Cash provided by operating activities

 

 

1,012

 

1,615

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Capital expenditures

 

 

(225)

 

(222)

Purchases of businesses, net of cash and equivalents acquired

 

 

(96)

 

(1,611)

Other, net

 

 

(42)

 

61

Cash used in investing activities

 

 

(363)

 

(1,772)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Net increase in short-term borrowings

 

 

2,076

 

60

Proceeds from short-term borrowings greater than three months

 

 

433

 

Payments of long-term debt

 

 

(502)

 

(301)

Dividends paid

 

 

(611)

 

(606)

Purchases of common stock

 

 

(942)

 

(78)

Other, net

 

 

39

 

83

Cash provided by (used in) financing activities

 

 

493

 

(842)

 

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

 

(53)

 

26

Increase (Decrease) in cash and equivalents

 

 

1,089

 

(973)

Beginning cash and equivalents

 

 

1,494

 

3,315

Ending cash and equivalents

 

 

$2,583

 

$2,342

 

 

 

 

 

 

 

 

 

Table 5

EMERSON AND SUBSIDIARIES

SEGMENT SALES AND EARNINGS

(DOLLARS IN MILLIONS, UNAUDITED)

 

 

 

 

 

Quarter Ended March 31

 

2020

 

2021

Sales

 

 

 

Measurement & Analytical Instrumentation

$776

 

 

$732

 

Valves, Actuators & Regulators

854

 

 

836

 

Industrial Solutions

494

 

 

555

 

Systems & Software

585

 

 

670

 

Automation Solutions

2,709

 

 

2,793

 

 

 

 

 

Climate Technologies

1,026

 

 

1,160

 

Tools & Home Products

432

 

 

485

 

Commercial & Residential Solutions

1,458

 

 

1,645

 

 

 

 

 

Eliminations

(5)

 

 

(7)

 

Net sales

$4,162

 

 

$4,431

 

 

 

 

 

Earnings

 

 

 

Automation Solutions

$391

 

 

$471

 

 

 

 

 

Climate Technologies

217

 

 

245

 

Tools & Home Products

89

 

 

112

 

Commercial & Residential Solutions

306

 

 

357

 

 

 

 

 

Stock compensation

38

 

 

(61)

 

Unallocated pension and postretirement costs

12

 

 

23

 

Corporate and other

(22)

 

 

(15)

 

Interest expense, net

(36)

 

 

(38)

 

Earnings before income taxes

$689

 

 

$737

 

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