Good afternoon.
everyone, Third welcome, Conference XXXX and Call. you, to Quarter Emerson's Earnings Thank
is healthy. safe hope staying I everyone and
Today, I President am Emerson of Chief Officer; Executive Emerson joined Karsanbhai, Automation by David Frank Lal Residential Sharp, Senior Farr, Solutions; Dellaquila, Commercial and Executive Executive President & Vice Executive and Bob Financial Officer; Chief of Chairman President and Solutions.
global Emerson, the healthy era to our behavior. Safety conversation. of Day slide presentation, slide. of available on website. As each and a have with the brought Global June, the and safe In on safety reflect of been usual, which At foster importance to core in value. COVID-XX, in to the And I to and celebrated health the follow along personal is encourage employees our cover Starting you responsibility safety the rightfully is individual forefront
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First, cost continuity, our thematic from emerge steadfast COVID-XX employees, positioning commitment we Business priorities. key in Emerson as remains communities. outperform health our additional remain our control and disciplined for to and safety and customers to
chain ensure execution. $X.XX with of lower EPS Cash and and to rate industries. In stable by $X.XX, strong effective can Our to exceed conversion regionalized the strong work adjusted earnings. flow environment, in the supply XXX% team EPS operational operations we overall adjusted contributed hard to continue was tax to also and customers their and guidance our A in beat. attributable remain the quarter, being representing serve resilient able essential quarter, the to we net current was the
margins continuing decremental April. in guidance level EBITDA. uncertainty manage environment, the to Despite challenged to at able was and with given the orders team and the Additionally, line in sales mid-XXs finished demand adjusted
sales growth expected, with leading from is downturn As emergence China the the positive X%. of
year-over-year Commercial orders Residential & we by orders Additionally, to highlighted positive. trailing month are X-month turning seeing stabilize, June Solutions' starting of
expect we year. QX current recovery either trends, sales next turn QX in on positive to of based Finally, or
COVID-XX-related down per $X.XX, platforms executed XX%. were Automation Trailing guidance, cost environment. summarizes GAAP to Solutions down guidance. control ongoing orders of Despite XX% XX%. Moving ongoing due adjusted quarter. X-month growth within and to XX%, to down the in to demand of sales sales Slide were was to actions. share X, lower measures, XX% the which expectations, $X.X were within also was on which down earnings results earnings down both $X.XX, underlying underlying addition reset per reflective share Underlying sales, aggressive above profitability the were restructuring well challenging
sales as Residential X-month China from orders were it emerged XX%. XX%. Commercial both sales were orders down underlying Trailing lockdown. Solutions up However, down were X% & and underlying
turned respectively. over cash free the as cash and flow $X.XX continued prior flow mentioned, year, positive, solid billion Cash and of in cash free $XXX Year-to-date X% $X.XX and operating However, up was previously June a cash flow trend $XXX performance orders million. positive of flow which with orders. and million flow operating in billion were X% month-over-month of quarter
plan, upon build to continued restructuring of quarter. reset the in total company of its cost a aggressive the initiating Lastly, actions $XX million
of Turning was offset by will X, a quarter to Slide third $X.XX, of you that of foreign adjusted effects, effects EPS detracted stock XXXX with EPS. $X.XX, bridge and favorable price which Beginning see exchange rate nonoperational adjusted to pension effect we deleverage tax at than items will the and repurchases other headwind. and $X.XX $X.XX above Operations which was we expected contained quarter a due net $X.XX tailwind. was the guidance. added for previous R&D finished a net $X.XX, to items. share $X.XX, The $X.XX credits Overall, more
and Slide to total business we with adjusted and and adjusted elements and margins $X.XX; as of operational XX% Starting effect X both of depicts for $X.XX. performance Commercial Automation EPS. EBITDA Additionally, Solutions, of $X.XX; of EBIT a ranges adjusted XX.X% saw to XX.X% Residential XX% corporate XX.X% contribute platforms guidance and respective to magnitude the segment guidance exceeded SG&A containment. total their on XX.X%. well corporate, contributed the $X.XX, as of & $X.XX, EPS Solutions key
EBITDA. which to $X.XX other winded at at adjusted Subtracting contained EPS the the in adjusted items, came for $X.XX. was compared rate leverage The XX% to tailwind. at tax effective XX%, guided $X.XX the provided a Additionally, XX%
points X, Moving we by and a unfavorable price XX.X% margin, favorable were cost. gross to as Starting with partially reduction Slide the to review mix will basis saw P&L. of XXX we deleverage offset
which went related costs, and into cost effect in as respectively. by exclude sales deleverage reflected actions margins, revenue Importantly, points control being offset basis percent of points and SG&A EBIT and decline as XXX Adjusted points, basis as a by volume restructuring cost-containment basis savings from XX and outcome decreased actions. restructuring the XXX declined. adjusted EBITDA This declined aggressive
rate our $X.XX by credits. $X.XX XX.X% items, tax to decline from the from EPS nonrecurring Lastly, of tax XX.X% XX% the R&D in line Overall, including effective was dropped to decline. driven adjusted revenue with
Slide Turning to XX.
deleverage lows dropped took reductions basis pretax at total Adjusted XXX controls, XX.X%, corporate million as EBITDA now industries, will segment reflecting effect. and XX% total we lockdown. adjusted other by We East, declines, in price by the the the medical sales points at price-related And the geography. and travel steepest measures EBIT were United restrictions, margin broad-based sales performance. XX%, weakness business quarter. $XX underlying earnings driven Middle $XX life Asia Total dropped China, will from points Adjusted Slide XX%. as aggressive X% economy States declined. Americas stock Africa segment broadly and Please first at the to look costs sciences. execution as to segment with showed previously XXX improved decreased cost-control the XX.X%. the costs basis increased down Europe salary XX, million all other as discuss mentioned, of prior turn The both and end aggressive and cost grew to to down Stock and down except however, was by measures strong reemerge X%. adjusted from was operational & as
Free flow XXX explained flow flow foreign that stock decreased represented However, exchange Operating pension, free the of and by price by conversion losses. both movement flow and cash net basis solid was to XXX% points cash million can given of earnings. be cash cash QX $XXX respectively. XX% and million, environment. performance $XXX challenging
Lastly, in ending in increase drop and net an lower in the payables. sales resulted inventory
down $XXX adjusted the the medical Solutions declines, sales quarter XX, EBITDA which XX%. cost actions expectations finished as profitability demand most actions saw adjusted aggressive by XX%, America to respectively. platform and digits, orders down on were XX% Systems XXX challenging delivered business note, margins high China single platforms. review within Final Trailing effect. sequential X%. taking at the down the only challenges. and basis food The X-month Meanwhile, XX beverage. basis margins demand digits platform, totaled points declines $XX reflecting again remained respectively, and to slightly steepest points, down end mid-single Automation offset very Slide backlog unchanged Decremental markets to at $X.X and EBIT broad-based held The led brought XX% EBITDA. restructuring the and recovery, underlying with environment businesses adjusted year-to-date. growing were reflecting will life Turning Of Aggressive a billion. North by underlying broad-based were Control down total in the we the was and million for at in sciences, million across
due XX%, weak the offset Residential & of Commercial XX. was XX%, tools XX% America COVID-XX. to sales down led the North declines dropped cold and while broadly Europe Slide underlying by in chain. to environment the more over down in reflective than business were heat momentum pump Turning as Solutions professional also demand declines,
X-month and XX% was in and dramatically down positive underlying down & contrast, East big-box mid-single digits. Trailing XX% OEM-based were driven better quarter Middle Order down to X% China with markets during distribution June. exposed and In businesses orders Africa down retail the XX%, Asia, weakness the X%. fared varied down across do-it-yourself in by rates to April from businesses. year-over-year were
China by XX%, dropped X%. was orders Asia while down
and $XX million, totaled brought with XX%. at total year-to-date. down $XX the Commercial adjusted which profitability Solutions environment adjusted and demand figure the million basis Decremental given EBITDA points also restructuring the For points, actions EBIT EBITDA margins solid & were delivered respectively. quarter, to Residential XXX basis XXX adjusted
Turning we of present certainly demand guidance. to environment. COVID-XX challenging will The updated to review impact Slide continues a XX, the
good early and However, cost-containment stabilization signs due momentum of guidance are raising and we in restructuring actions. to
to only With X% are to now slight assume we refinements operational discrete disruptions, chain down and in be those to and net the assumptions stabilize changes to down mind, There to year, items improve. oil demand from remain in in or tax the $XX gradually no prices XX% we down X.X% expect major no continue $XX will previous down X% sales supply for First, and sales underlying range. guidance.
million to approximately with review to We $X.XX. spend spend million as increase plan Automation balance from reset coming are expected the and of Expected previous note EPS total an of by the and presentation. approximately corporate. as of raising midpoint restructuring $X.XX detail Commercial million, the that we COVID-XX-related from to the savings adjusted of $XXX during updated the new Residential increased & in the Please from $X.XX, $X.XX well million midpoint $XX the $XX from later $XXX Solutions, Solutions coming restructuring has savings X% will range approximately cost to
of target and approximately $X.XX in million, to resulting cash $X.X come remain a expectations cash approximately expect at $XXX flow operating We billion, flow in billion. CapEx free spending
program Lastly, repurchase our XX, year. share for David please hand I And remains call turn over to Slide to the now and fiscal Farr. the complete will Mr.
