Emerson Reports Q4 and Full Year 2021 Results and 2022 Outlook
Fourth quarter net sales were $4.9 billion, up 9 percent from the year prior despite an estimated $175 million impact due to supply chain, logistics and labor constraints.
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Edited by Margo Ellis
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Emerson reported results for the fourth quarter and fiscal year ended September 30, 2021.
“A rigorous focus on culture, our portfolio and operational execution is critical to our continued success, and I am incredibly proud of the initiative from our global team in these key areas,” said Emerson president and CEO Lal Karsanbhai. “Our team has been working hard to mitigate the near-term impact of supply chain challenges which have created obstacles across the essential industries we serve. We don't expect the global supply chain landscape to hinder our success around long-term value creation, and we continue to progress toward our cost reset targets.
“This past quarter, we took action on our vision of a reimagined Emerson. We are advancing our culture across the organization through employee initiatives and a renewed focus on integrating environmental, social and governance (ESG) priorities. We also took an exceptional step toward expanding our software portfolio by announcing the strategic transaction with AspenTech. This transaction will create an industrial software leader by creating synergies and a differentiated vehicle for software acquisitions. This opportunity to deepen our industrial software capability is a meaningful step in a portfolio evolution that will ultimately drive higher growth and value creation. I’m energized as we enter a new fiscal year, and I know our team is ready to perform.”
September trailing three-month underlying orders were up 16 percent, as demand continues to be strong in key hybrid and discrete automation as well as residential markets. Late-cycle process automation and commercial markets continue to improve and orders activity is increasing related to customer sustainability initiatives, notably decarbonization programs.
Fourth quarter net sales were up 9 percent and underlying sales were up 7 percent, excluding favorable currency of 1 percent and an impact of 1 percent from acquisitions. Revenue fell into the lower end of our guidance due to an estimated $175 million impact from supply chain, logistics and labor constraints. North America continued its strong recovery in the fourth quarter despite supply chain challenges, with the Americas up 16 percent, while Europe was down 2 percent. Asia, Middle East and Africa was down 3 percent, with China up 10 percent. For the full year, net sales were up 9 percent and underlying sales were up 5 percent. The Americas were up 6 percent and Europe and Asia, Middle East and Africa were both up 5 percent, with China up 15 percent.
For the full report from Emerson, click here.
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