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Backlog is now $7.6 billion, which is up $500 million versus September 30 when excluding test and measurement.
(No comment added)
Transcript
2024 Q1
27 Feb 24
We are expecting 4% to 6% underlying sales growth, driven by our focus and commitment to winning in our growth platforms and leveraging our innovation. Energy transition, industrial software, life sciences, and metals and mining are expected to remain resilient parts of our portfolio, and we are utilizing our leading technology, customer relationships, installed base and expertise to capture investments in these markets.
24 guide
Transcript
2023 Q4
24 Nov 23
While discrete markets are down in both our factory automation business and test & measurement, we are expecting recovery in the second half of the year.
pressure in duscrete and FA, t & m
Transcript
2023 Q4
24 Nov 23
Right. Yes, it does influence your cash.
So just curious if you guys – the owners have a view on that. When it comes to NATI, how coveted is this asset for you guys? I mean it doesn’t seem like they’re going to take anything below $60. Is – are you guys really willing kind of go to the wall for this?
Lal Karsanbhai
I can be very clear with you, then we’re not going to be the purchaser of the asset.
not paying $60 for NI
Transcript
2023 Q1
6 Mar 23
I wanted to start on the industry outlook you provided across process, hybrid, discrete, little variation across the three, but essentially all growing nicely in the single digit range. There are others in some of these markets that have double digit outlooks versus the singles that you provide, I am well aware there’s often apple and orange impacts here in making comparisons. But I was just curious, is there any conservatism embedded in these outlooks you’ve provided? Is there anything you would do to help us reconcile some of what we’ve heard elsewhere? Thanks.
Lal Karsanbhai
In terms of the market outlooks, Tommy, we feel that we’ve given a very balanced view of what’s out there. The blend of the different types of businesses that we cover in terms of capital modernizations and replacement. We’ve also taken into account that the various geographic trends. But no, I feel that what we’ve put there ties into the guide for the quarter and of course our expectations for the year as well. And again, within each of the segments, as you recognize, there are big pluses and smaller pluses clearly in the Discrete space, which we’ve been speaking about to a significant amount today. EV semiconductor elements like that, of course have a significantly higher growth than some others. But overall, I feel that the indications we’ve given are fair based on what we’ve seen this in the marketplace today.
industry guide vs ROK
Transcript
2023 Q1
9 Feb 23
I think that the plan really is LSD, low-single digit price, low-single digit volume, the growth vectors – semiconductors, battery manufacturing, frankly from a sector that we are cautious on automotive is something we’re going to have to carefully watch.
We have had good performance so far. But automotive is an area that we have to watch very carefully. And then our stocking levels in terms of distribution, again, we haven’t seen any slowdown yet. But certainly to your point, based on the PMI forecast and what is anticipated there could be slowing in that sector.
watchinh auto closely
Transcript
2023 Q1
9 Feb 23
But when we think about what we’re seeing on sort of the PMI side of things and then thinking about sort of Discrete just growing through a PMI slowdown. I mean, can you touch on as the expectations sort of outside of some of these structural growth areas that we just continue to see some kind of low-single digit volume growth and sort of no kind of connection there between some short cycle macro indicators of slowing, but not really seeing it in your end markets?
PMI weak orders strong? how
Transcript
2023 Q1
9 Feb 23
Yes. No, it’s a good question.
Of course, we did have a very active quarter in terms of the project funnel and particularly not just in projects that were booked and hence exited the funnel, but also in the build-up what we saw in terms of activity. I would suggest that the predominant element of growth came in two areas: One is life sciences, which grew significantly in the funnel in the quarter; and secondly, the energy transition, which continues to be very robust, both here in the U.S. and in the Middle East predominantly and became additive to the funnel. And that funnel grew not just in terms of dollars by about $0.5 billion, but also in terms of number of projects, but only by eight projects, which tells you that the average size of projects are getting larger, which is also a dimension here.
Ram Krishnan
And the only thing I would add is the LNG size of the funnel remains large, meaningful. And what we saw in the last quarter was a good momentum on the FID progress associated with many LNG projects in the U.S. where we’re very, very well positioned. A lot of these are going through Bechtel, in Texas and Louisiana. And our expectation is, we will ramp up order booking activity in those – on those projects as we go through the second half of the year.
LNG, automation pipeline etc
Transcript
2023 Q1
9 Feb 23
The buffer inventory required with supply chains are still chewing up enough of working capital that you’re seeing lots of underperformance on free cash flow.
So how do you see this playing out?
Frank Dellaquila
Yes, good morning, Deane. Mainly, it’s an inventory story. It has to be around getting the backlog out in order to get the inventory down and supply chain is adjusting and improving but in ways that aren’t always helpful in terms of difficulty and timing, receipts of materials.
So that’s the fundamental thing that needs to change is that we need to get the inventory out over the next three quarters. And a big part of that will be shipping the backlog that we have, and we certainly have a robust backlog level.
So it’s about execution now going forward. Ram and I discuss that in detail with our businesses when we had our quarterly ops reviews and I’m sure Ram can comment a little further on the supply chain implications.
CF guidance with current W/C issues
Transcript
2023 Q1
9 Feb 23
We’re maintaining our full year guidance based on the underlying strength in our end markets and robust backlog. The guide for underlying sales growth remains at 6.5% to 8.5%. We now expect currency to be less of a headwind at 2 points, and AspenTech is expected to contribute 3.5 points.
Therefore, we are increasing our net sales expectations to 8% to 10% of a point from the previous guide.
sales guidance raised, but only because FX seen as less of sa negative
Transcript
2023 Q1
9 Feb 23
As an example of the projects our investment will supply, Emerson was chosen to provide automation for the world's largest green hydrogen facility by NEOM.
The plant will provide 600 tons a day of green hydrogen using Emerson Automation technology throughout production processes and renewable power generation. Emerson's local support and installed base in the Middle East were key differentiators.
Secondly, Emerson and AspenTech continue to succeed with our joint customer solutions.
In the first quarter, we were jointly selected to automate the Middle East's largest ethane facility by QatarEnergy and Chevron Phillips, Ras Laffan. Emerson will serve as the main automation contractor for the $6 billion facility, providing our leading DeltaV control system with AspenTech engineering and simulation products. The project is a scale example of our commercial agreement with AspenTech and how it successfully provides an expanded differentiated product offering to customers.
Lastly, Emerson continues to diversify through life sciences and metals and mining markets. In the first quarter, Emerson was awarded the automation contract for FUJIFILM Diosynth Biotechnologies in Europe. The expansion project will include multiple bioreactors and processing streams, one of the largest CDMOs in Europe. These three projects are a clear demonstration of Emerson's commitment to the growth platforms we discussed at our investor conference, and our continued success differentiating as an automation leader in these market
green hydrogen, ethane facility, and life sciences SO a lot more than o & g
Transcript
2023 Q1
9 Feb 23
nd market demand remains strong as first quarter order trajectory played out largely as planned. 5% underlying orders was as expected as broad automation strength was weighed down slightly by a double-digit decline in safety and productivity orders against tough comps.
Sequential underlying orders were also up 6% versus the September end quarter. Sales met our expectations at 6% underlying growth, slightly impacted by shutdowns in China.
orders
Transcript
2023 Q1
9 Feb 23
Got it. That’s helpful. And then this might be hard to pin down but because Russia, Ukraine is so recent and it takes a while for your customers to move their feet on this, does that have any appreciable uptick from these new energy investments or LNG that would be specifically done as a result of Ukraine? Or is that still premature?
Lal Karsanbhai
No, I think it's very active, Josh. The activity, particularly in Louisiana, Texas and Mexico is incredibly robust. The number of projects that have been engineered and are going through funding and we're very engaged in through engineering contractor such as Bechtel [ph] are significant. And they're vastly in response to the energy security of Europe.
And so we're pretty excited about what we're seeing right now.
lng/russia
Transcript
2022 Q4
17 Nov 22
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