Emerson Reports 1Q 2021 Results

Emerson reported results for the first fiscal quarter ended Dec. 31, 2020, with very strong numbers. Operating cash flow was $808 million in the quarter, up 90%, while free cash flow was $686 million, up 121%.

First quarter GAAP net sales of $4.2 billion were flat from the year prior; underlying sales were down 2%. Overall, residential markets showed continued strength while many core automation markets remained subdued

Commercial & Residential Solutions trailing three-month underlying orders showed continued strength, up 15%, with growth across all businesses and geographies. Additionally, Automation Solutions trailing three-month underlying orders continued to stabilize, down 13%, as KOB3 demand was steady and KOB2 demand improved slightly.

First quarter gross profit margin of 41.4% was down 100 basis points from the previous year primarily due to deleverage and business mix.

“Emerson’s leadership team and global operations remain steadfastly focused on safely serving customers and protecting business continuity in essential industries including life sciences, power, food and beverage, home comfort, energy, and water,” said David N. Farr, Emerson chairman and CEO.

“Orders and sales continued their upward trajectory in the quarter, and operating results exceeded expectations. These factors enabled us to deliver strong profitability, earnings and cash flow, driven by our ongoing robust cost containment and restructuring actions, as well as improvement in some of our end markets,” added Farr.