Emerson Reports Fourth Quarter and Full Year 2023 Results

Emerson (NYSE: EMR) today reported results for its fourth quarter and fiscal year ended September 30, 2023, which are presented on a continuing operations basis. Emerson also declared a quarterly cash dividend of $0.525 per share of common stock payable December 11, 2023 to stockholders of record November 17, 2023.

Management Commentary

“Emerson completed an exceptional fiscal 2023 with double-digit sales growth, strong operating leverage and robust adjusted earnings per share growth,” said Emerson President and Chief Executive Officer Lal Karsanbhai. “This momentum and our continued focus on execution, leading technology and resilient end-markets provides confidence in our guidance for fiscal 2024.”

Karsanbhai continued, “In the quarter, we also closed the acquisition of NI, largely completing our transformation into an automation leader. Our differentiated portfolio with NI and accelerated investments in new-to-the-world innovation provide a unique opportunity to solve many of our customers’ toughest challenges and create long-term shareholder value.”

2024 Outlook

The following tables summarize the fiscal year 2024 guidance framework and incorporates, other than as set forth below, our NI acquisition⁵, which closed on October 11, 2023. The 2024 outlook assumes approximately $500 million returned to shareholders through share repurchases and approximately $1.2 billion of dividend payments. Guidance figures are approximate.

	2024 Q1	2024
Net Sales Growth Underlying Sales Growth	14% – 17.5% 6.5% – 8.5%	13% – 15.5%4% – 6%
Earnings Per Share5     Amortization of Intangibles      Restructuring / Related Costs      Acquisition / Divestiture Fees and Related Costs      Copeland Equity LossAdjusted Earnings Per Share	$0.45 – $0.50~$0.17 ~$0.08 ~$0.19 ~$0.11$1.00 – $1.05	$3.82 – $4.02~$0.67 ~$0.22 ~$0.22 ~$0.22$5.15 – $5.35
Operating Cash Flow Free Cash Flow		$3.0B – $3.1B $2.6B – $2.7B

Notes:

¹ Underlying orders does not include AspenTech.

² Underlying sales excludes the impact of currency translation, and significant acquisitions and divestitures. Heritage AspenTech and Emerson’s businesses contributed to AspenTech are included in underlying sales beginning in 2023 Q4.

³ Adjusted segment EBITA represents segment earnings excluding restructuring and intangibles amortization expense.

⁴ Adjusted EPS excludes restructuring and related costs, NI investment gains, acquisition/divestiture costs, write-offs associated with Emerson’s Russia exit, an AspenTech Micromine purchase price hedge, the income/loss of Emerson’s 40% share of Copeland, interest income on undeployed proceeds and intangibles amortization expense. Post-Copeland transaction close, adjusted EPS now includes the interest on the Copeland note receivable valued at $0.04 and $0.05 for the fourth quarter and fiscal year 2023, respectively.

⁵ GAAP earnings per share guidance for 2024 does not include the impact of intangibles amortization and other purchase accounting-related costs related to the NI transaction. The initial accounting for the transaction is not yet complete and therefore Emerson is unable to estimate these amounts. Although these items may have a significant impact on GAAP EPS, they will be excluded from adjusted earnings per share and will have no impact on cash flows.

For the complete press release, click here.

About Emerson

Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world’s essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit?Emerson.com.

Contacts:

Colleen Mettler – Investor Contact – (314) 553-2197

Source: Emerson Electric Co.