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

Emerson also declared a quarterly cash dividend of $0.52 per common share for shareholders of record as of May 12, 2023, payable on June 9, 2023.

Base order rate rose 7 percent
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% from the prior year
Adjusted GAAP earnings per share were $1.09, up 25% from the prior year
Cash flow from operations in the second quarter was $575 million, up 51% from the same period last year
Free cash flow was $513 million, up 64% from a year ago

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“Emerson’s strong second quarter results were driven by strong end market demand and superior operational execution from our global teams, as underlying sales growth, operating leverage and earnings exceeded our expectations,” said Lal Karsanbhai, President and CEO of Emerson. It is a testament to the strength 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 acquisition agreement of NI Instruments, a leader in test and measurement automation. NI Instruments’ best-in class technology and software will accelerate Emerson’s drive to build a more cohesive, higher-growth and more profitable automation portfolio. Leveraging Emerson’s diversified strength to access attractive discrete markets.”

Full year forecast for FY2023

Following the announcement of the divestiture of the Optimized Technologies business, which is expected to close this quarter on May 31, Emerson’s continuing operations will include interest income of $2.25 billion on Optimized Technologies notes receivable and a gain or loss to 45% 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 about $1.2 billion in dividends.