Emerson Reports Strong 2Q 2018 Results

Emerson announced net sales were up 19% in the second quarter ended March 31, 2018, with underlying sales up 8% excluding favorable currency of 3% and an impact from acquisitions and divestitures of 8%. The second quarter results reflect strong global economic conditions and continued favorable demand. Both mature and emerging markets delivered high-single digit underlying growth.
 
Margins improved versus prior year, excluding the impact of recent acquisitions, driven by leverage on higher sales and the benefit of prior year restructuring actions. Reported pretax margin of 15.5% and EBIT margin of 16.3% decreased 30 and 70 basis points, respectively. EBIT margin of 18.7% increased 170 basis points excluding Valves & Controls. GAAP earnings per share from continuing operations increased 31% to $0.76.
 
“Our second quarter results close out an excellent first half in which strong global markets drove underlying growth, and our businesses delivered healthy incremental margins and earnings that exceeded our expectations,” said David N. Farr, chairman and CEO. “Across the company, our teams are executing well, and have positioned Emerson to deliver strong earnings and cash flow growth in 2018.”