Automation provider Emerson has posted encouraging Q2 net sales, while recovery in the Americas lags but exceeds expectations.
Net sales in Q2 came in at $4.4bn, up 6% from the year prior. Operating cash flow was up by 37% to of $807m in the quarter, while restructuring costs of $21m were initiated as the company continue to execute its comprehensive cost reset program to return the company to record adjusted EBIT margins.
Automation Solutions net sales increased by 3% in the quarter, with underlying sales down by 2%, which was ahead of February guidance. Results reflected ongoing strength across discrete and hybrid markets, and improvement across MRO and installed base programs (KOB3). Discrete oriented businesses grew high single digits, while systems and software grew low single digits. Recovery in the Americas continues to lag, said the company, but “exceeded our expectations and showed sequential improvement with underlying sales” which were down by 12% compared to the 20% loss in Q1.
CEO Lal Karsanbhai commented that “economic recovery momentum is building across most of our key end markets, which resulted in better than expected top line results this quarter. Trailing three month underlying orders ended on the high side of the guided range, and underlying sales came in above guidance – a strong signal for broadening recovery”.
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