Emerson Reports 4Q, Full Year 2022 Results

Emerson reported results for its fourth quarter and fiscal year ended Sept. 30, 2022.

Fourth quarter net sales were $5 billion, up 8% and underlying sales were up 12%. The Americas were up 17%, Europe was up 3%, and Asia, Middle East & Africa was up 7%. China was up 9%. Full year net sales were $19.6 billion, up 8% and underlying sales were up 9%. The Americas were up 14%, Europe was up 2%, and Asia, Middle East & Africa was up 5%. China was up 7%.

Fourth quarter operating cash flow was $1.2 billion, up 42%, and free cash flow was $1 billion, up 63%. Full year operating cash flow was $2.9 billion, down 18%, and free cash flow was $2.4 billion, down 20%. Full year cash flow results reflected higher working capital due to increased sales and supply chain constraints throughout the year, and $153 million of tax payments on divestiture gains.

“Fiscal 2022 was a transformational year for Emerson. We made significant progress on our portfolio and culture transformation while maintaining our world-class operational execution,” said Lal Karsanbhai, Emerson president and CEO. “Today’s announcement to divest the Climate Technologies business is a critical milestone in positioning Emerson to be a global pure-play automation leader. We are energized by the growth and value creation opportunities enabled by our leading capabilities in intelligent devices, control systems and software.”

“Emerson closed out a strong 2022 with 9% growth in underlying sales and a 16% increase in adjusted earnings per share,” Karsanbhai continued. “Continued strength in automation demand and our robust backlog give us confidence in our 2023 sales guidance. Our operational execution will also lead to strong margins and cash flow conversion. Finally, I would like to thank our global employees for their hard work throughout 2022 and I look forward to future success as a global automation leader.”

Following the announcement of its Climate Technologies divestiture, Emerson will report financial results for Climate Technologies, InSinkErator and Therm-O-Disc as discontinued operations for all periods presented, beginning in 2023. The earnings from discontinued operations for 2023 are expected to be $10 billion to $11 billion, or $17 to $19 per share, including the net gains on 2023 divestitures.