EMR Emerson Electric

Tim Reeves Director of Investor Relations
David Farr Chairman and Chief Executive Officer
Andrew Kaplowitz Citi
Steve Tusa JPMorgan
Jeff Sprague Vertical Research Partners
Deane Dray RBC Capital Markets
Josh Pokrzywinski Morgan Stanley
Nicole DeBlase Deutsche Bank
John Inch Gordon Haskett
John Walsh Credit Suisse
Julian Mitchell Barclays
Robert McCarthy Stephens
Joe Ritchie Goldman Sachs
Andrew Obin Bank of America
Deepa Raghavan Wells Fargo Securities
Gautam Khanna Cowen and Company
Call transcript
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Good day, ladies and gentlemen. Thank you for standing by. Welcome to Emerson’s Investor Conference Call.

During today’s presentation by Emerson management, all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions. recorded X, being is conference today, XXXX. August This

could your contain for filed materially forward-looking commentary factors remainder and Emerson’s including from as may recent to responses that on is Information outlook Emerson’s those statements, discussed to available XX-K questions the SEC. Annual the Report year. with actual Form today the cause results of at vary the most Company’s on

Investor host, like now conference turn at Tim ahead. Reeves, go to of our would I over Director the Relations Please Emerson. to

Tim Reeves

Thank you, Farr, Vice Officer; Dellaquila, Allison. I today Officer. by Executive am and Chairman David joined President Senior Financial Executive and Chief and Chief Frank

in website. Third the billion the third I’ll follow Quarter Emerson’s X. both May Conference Earnings quarter along summary X% guidance to on orders slide Call. the and in $X.X were is in was below discussed which of on Slide the quarter we earnings Please underlying our start Welcome our presentation, second X% also X%. Sales Growth during increased quarter with sales conference XXXX on businesses. Underlying were X%, X% available expectation June, call across X. below up up to the

upstream America and American and demand to and gas North elsewhere. up be sales to quarter. oil markets, stable global Automation X% Solutions’ end had decelerated further to to robust discrete markets and end X% hybrid process the however were in recover, in We Demand and continued demand discrete underlying quarter. orders in clear the in have yet was inventories up expected improve. channel North but instead

that share the the America. and wet and by Through up was additional sales and the GAAP our we’ve to complete Today, million announced weather excluding of we was items billion in to the Solutions in completed conditions Residential an we & orders third driven returned were fourth in $XXX repurchase $X North tax underlying cooler discrete down and year. share X%, will quarter, $X.XX repurchases target billion current $X.XX EPS in shareholders primarily Commercial quarter, $X.X XXXX quarter. target. prior X%

was EBIT points to third EBIT points. several Test items up Turning X, XX XX margin basis margin years gross Platforms basis the and both quarter. was down and from was down Aventics, Tools discrete XX benefited acquisitions. basis quarter rate points Intelligent excluding GE Tax favorable in the & in Slide margin

X% Commercial was East to Turning accelerated Solutions growth from led third by Africa, QX, improvement in sequential in the Middle up driven and underlying Slide X, Asia, flat business. which quarter sales primarily to QX by Residential in &

business to compared However, remained X%. The was up Americas the the businesses and positive Automation X% both across remained and both platforms. X% up was positive growth but Solutions across Europe second up sequentially. with quarter also ticked of slower

Turning and down segment now basis down expectations our acquisitions. Slide approximately as XX with X, XX.X% to margin in and our was points total to was sequential lower XXX Segment line mid-XXs sales. was basis over million recent of margin higher together leverage points strong businesses growth. sales well on executed We is in $XXX guided business our excluding delivered core on deliver XX% the profitability

of this we the accelerate programs year, restructuring fiscal growth last this business second restructuring of in discussed And we certain to approximately XXXX a another year. added million. identified in $XX QX, In the accelerated quarter, environment. to we’ve half As we’ve investments near-term position $XX slower for million

profitability is company for expected for investments approximately XXXX, million restructuring now early at will is February up which $XXX XXXX. the help total million spend in actions our and These Our Investor improving from $XX other Conference. position

X% performance quarter. was conversion – in XXX% cash and flow free solid, cash was Operating with the up flow

fourth in we opportunity late and an points in the driven continue XX worse cash year the was free was quarter. conversion performance greater year-to-date XXX% cash entirely basis soften flow for by June, flow by the than quarter. XX% and capital higher Trade performance fourth conversion. flow expect TWC us sales in working quarter in cash is Our as is to inventory, full which strong

We expect to recover performance. the quarter, this which will cash benefit in fourth

of Turning quarter continued underlying onto world We areas quarter. and Slide Solutions’ broadly remained spending, strong greenfield across orders were and remained projects. were business; follows. demand X, in trend in Automation up saw brownfield, three X% as Underlying sales the our X% up sales stable All positive. kinds MRO the

funnel, a cycle project that we And project backlog. long our systems and continue missed were in our a growth, There expectations. areas progress outlook, growing to strong orders healthy see few

in America constrain investment continue activity. North Customers upstream recover as budgets continued expected. focus regions and other free and also capacity the cash we not key oil flow, limited First, to and to maximize their Permian pipeline did CapEx gas

end remains more manufacturing funnel project more discrete have finally, global automotive customers Geopolitical markets. – investment Second, tensions semiconductor short weakness our cautious end was The healthy, capital in investment although markets and cycle particularly a cautious created are around business And sales trade spending. decelerated. and our climate.

we’ve As has projects year. push some of out impacted the our in growth orders sales This seen a XXXX. expectations and result,

executed. to be that funnel However, the have not had project will and we’ve projects any confidence cancellations continue we in

implies orders bit growth growth end For guidance. a our of supported is the QX, at is approximately X% steady year, by quarter of fourth of and expect conversion. backlog stronger rates low sales than we X%, underlying which approximately the full a growth This prior underlying which sales

business executed well Platforms and Segment as margin decreased the XX and the acquisitions. lower on management basis GE basis was our down Intelligent leverage team XXX guidance points Aventics above The sequential growth. delivered excluding points

and segment additional to complete pulled actions that we Including full As this expected targeting XX%. in are mentioned, restructuring approximately we be is have year year. the margin

flowed in markets. construction positively. due conditioning X% and quarter decelerated X% conditions, July to Europe Slide to in quarter. the QX key air late Commercial preliminary residential, quarter, wet mainly to weather, also due Growth the down X, weather Residential the weather quarter from cooler, orders were regions this and in sales underlying that’s decelerated orders in & the Americas Turning X% in unfavorable Solutions in late trended to but

The Africa sales from quarter. turning Asia, three trailing down sign. underlying in East and to underlying into improved improvement up QX orders in were continue to region a with the we this as slightly we And X% preliminary down positive Middle growth And XX% good expect XXXX. head months July

QX full air markets Asia, growth conditioning the improvement For Africa East supported compared be prior North to Commercial X% approximately & by This positive we Middle expected rate, underlying continued which guidance. America in Residential in expect Solutions is slightly and up in to implies growth improvement a and flat our year, region.

sorry, XX Test Tools sequential the incremental Margin excluding basis guidance. over points sales, business was in which & delivered delivered leverage The businesses line XX% our over decreased on XX%, the with I’m acquisition.

pulled year to quarter. restructuring including XX% the actions into segment margins We approximately additional be full expect fourth

Slide Let’s turn now to X.

which and earnings range EPS per X.X%. XXXX updated underlying $XXXX X%, Our to near-term expected approximately share including approximately a growth growth than is of expected range. $X.XX, is the quarter $X.XX year to growth framework to guidance at in be full markets. expect quarter midpoint outlook is growth reduced the we sales maintained is guidance for lower fourth The reflect third Fourth quarter underlying of approximately discrete of global

lower EPS spend. is a segment Updated by targets reported and hold increased reflect third almost leverage corporate total to costs contribution full and quarter segment tax rate The year-over-year compared be guidance lower restructuring offset reduced growth and XXXX expected Reduced segment approximately XX% with fourth prior margin profit full sequentially, to the year XX% quarter. is range. the year

We expect operating discrete the cash billion. improvements and rate $XXX fourth ongoing includes from two-platform our operational rate tax full corporate global Expected to We tax approximately to benefits. XX%. reorganization is including structure. And estimated operating quarter forward, to million. XXXX We’ve going expect actions. year flow flow cost rate be continue tax $X.XX to which expected fourth $X.X also rate, updated platform approximately is optimize quarter cash is now XX.X% our a unchanged XX%, approximately is $X.X approximately at operational be expected The be free be as we to tax billion our tax

over will Farr. call XX, I now Mr. Please the and to David turn Slide hand to

David Farr

much, call. I earnings very us. to know I’d want also everybody. this you welcome as for through to next I joining want Thanks of you last let Relations Tim’s go say training people. Tim. that, Investor Thank process this is semi-professional

Tim Reeves

there. get never They

David Farr

be never will quite there. he’s that person, we in They later November timeframe. by But join get this it Tim the into get opportunity call. likely have for time, has to can’t unique going about, breaking a that year. most we I talk to And going another the us But but Tim

to remind want we to want people see. us employees today to close joining I for update I give what an of XX in the the for everybody, have I thank we ask questions. and number want Also queue today. everybody you and the want people to extensive to queue to in an thank us joining actually And

many for you the communications get to environment, possible. around sure our maybe the as communications minutes. a few a sensed from of questions we’ll be we to we’ll the to can talking last that as have it. rules, little minute And two I’m you’ll in lot as communications about you out So and call to change I holding continuous be keep and to the today, need XX:XX questions or asking here out Monday of we Clearly, try put I a put my business sense definitely then extend underlying which bit questions hour, tell a

for went thank drive out year-to-date as third XXXX moving employees and to and want and their in fiscal numbers XXXX. the for quarter also last all I this just we into support the finish months to the this challenging we over in through year three

look a at it’s year. the As I good year,

in good in right X growth it’s folded have ago. months much back sales, we than or that’s but growth going what with having happened thought earnings, have We good have now. flow, we to And differently deal cash months on good in XX we’re we growth

things. Page the can But see as you in XX, chart orders on two

called places we bag, Ireland in favorite and black tan. First, have golf after and Doon Doon, one our Doon of a pop is new

rocket, rocket birthday, to birthday Next old, one-year is today. today is

for up a little a bit, You did trend It slightly ticked solutions. us improve pulled can bit. little see automation the up order

little a July, which and positive negative good. ends were overall Solutions the bit On of in & specific of better, is for month the the turn month a slightly Residential – still but orders July, Commercial

or We’re we now we behind happening. what like good it’s four months behind what see that more four months to or but said, three said,

we area very for of up power XX% in strength Chemical, quarter world we’ve now. the orders caution to a industries to power semiconductor in around the see the quarter our quarter. PWS it power right got world. upgrade the business – seeing downstream, is, upstream we’ve quarter, midstream, continue facilities third between and a see been could the the pretty tough really You lots we good the around and the discrete around and the close as had Automotive good

over, what key funnel, we we below overall, the of – give way an to But actually updated in the softening we’ve funnel, thought we when out size Go this are funnel did Including, pipeline marketplaces, trend upgraded but year. our a large year. three this forward, call when definitely slowed times lines the started still project but a positive we two, the we total

be down billion, XXX slowing it a in little it’s push billion, are there, of documentation one, out for increase there projects, bit Projects basically the now that final around that Clearly, XXX is in sitting of we’ve sign committed another today not billion $X.X still are over projects. placed. a $X.X slightly an out $X February, little we’re to was bit. did things waiting it In is projects, but won order booked that

booking against we some it. start So can then start doing obviously, and shipments

bottom, $XXX about shifted that, months – shifted the has last XX about The see of talk XXXX. we shifted from other what’s been $XXX have we out out about this million XXXX other on we’ve XXXX projects and couple of and been to thing what working on we’re is to key X you’ll in based X, million, on seen for XXXX, of basically into XXXX of XXXX pipeline seen down the

time a is, slowdown believe I slow dynamic months base, the discussions discussions some couple is Clearly, our world. things world, this in the not last tells Europe things a some fundamentally causing cycle trade disruption is customer couple a organization seen spending relative ended. a and call, and on and you a of pushback because mode, negotiations, trade some around moving in, out, going clearly what of primarily we we’ve cycle of This places I moving pipe with in we’ve been in to down. in the the pause this a but clearly the bit this our around key some lot it’s a have, of USA, on that’s of little markets, the

But in continued to but and Middle East, still we XX a out up market pushed the back cycle our markets going and are resolution an out up. out little in And The bit international The XX, and believe, the I in. actually months. markets overall, to, now held move Canada some time trade U.S. pushed get little out next standpoint, going have if sales a push at little from do here automation bit of bit. discussions firmly between point will a

It’s and look yet. way going inside reallocate. on But capital of amount have not our build company a cycle what’s out at I’m we’ll early. this of an There’s lot in questions the as issue. around just we sure, too excessive I been spent

XX need looked deal As planned had what’s restructuring and on, concerned I looked protecting the to OCE together investments, slower Hence, accelerate I incremental down slow we XXXX some am the a look last to at where with need where over looked days got going improving growth a and at can We’ve little from to we happen. investments. we we standpoint We’ve restructuring. our slowdown how where the pullback and in at environment. long will profitability of the that in at

the structure X.X%, people standpoint we’re end and to XXXX, from through look of XXXX the at back a This we costs grow growth. had thought now much organization we around running in around faster growing X% XXXX X.X% instance, range. laid in Clearly, for of to that year, we’d X%

in look that doesn’t but environment look our for at also growth we happen I at see that time, to could if we flow the very gradual year. our protect at point deliver build next in results and I shareholders. want what our and profitability You going still a this flexibility cash some

point At lasting in into down the this time, slow XXXX. I well see

around resolution discussions easily we to trade election with last my past the And all so of November happen the that from face. some XXXX. see I at that well And what’s the going perspective, on could

that’s So we’re looking how at it.

come market May to they’re realization going customer May, to early necessary. be strategically, can cautious. and discuss, And when therefore from my It say, electrical is and down base group to perspective, a and penetration. we’re to going where going invest call gain profitability I than to the base the flow products our our and our talking protect different we’re And phone did perspective cash even in in or is back and market where continue share watching but I’ve then we customer to

prioritization go it on also From We’re we whole a we’ve through our pulled as going year, process. bit projects. a through capital this little this back

have to over we those the to and Frank spend couple commitments I’m And capital. we trying that years. Next set need spend in see, you’ll have with do where next year, to priorities to we of where we’re prioritizing money. I need capital

have and see hard and we’re being we’ll a end. our we opportunities now take Again, to we more come the some XXXX capacity XXXX. I additional on. have locations as those I go the to other that opportunities, in and we I into we way trying cost we and looking to forward back little have hence year some will right actions, But we’re And proactive, manufacturing as be bit make the at best have sure here take dealing between aggressive to we’re we around need that if world. be restructuring those in prioritize pretty

It’s slower been the one base, our does and all line cost for deliver growth, profitability, also in environment about improve I in growth for incremental believe margins our our that capital in structure happen. will happen different we’ve of which getting committing ourselves recovery a positioning

year dealt not We from it’s it’s say been it. thought a happen. want happened been a about perspective, would No. totally like happy So I overall, to relative investment good more and we little again, my My home. the is to the hand being relative up we’re a customer not going and tent environment. in but environment cautious, trade rolling to challenging bit base We’ve

be and attacking cost bringing structure serve serve line our things. our customers to to to we’re and going going also the want also be able We’re with. aggressive after build also we But ourselves that and to deal profitability

left. So for year. We’ve I And thank want months and a to Emerson the thank to as couple everybody XXXX. we this get want I ready team the more we wrap as XXXX team up from got

a line remind With maybe lot to that, in of XX everybody have XX open want more people or again line, we than now. I we’ll to the close people

And as to get an need through and questions two to much hour, questions. take time so the I hold we’ll about the to XX:XX up you

that, Tim, up. open let’s So with it

Tim Reeves



[Operator come Citi. will now We Instructions] will begin the session. today Kaplowitz Please ahead. question-and-answer question go from Our Andrew of first

Andrew Kaplowitz

Good guys. afternoon,

David Farr

Good afternoon, Andrew.

Andrew Kaplowitz

But prolonged This not, roadmap the difficult – the double-digits in to we be how given into bit the still obviously target repurchases, more might particularly are restructuring macro XXXX guys $XXX do it base. here we slowdown, for and this can go think in a m. you EPS think and the of achieve high if that off stabilize XX, about in in about longer-term so we that? level we as how If you difficult a of should XXXX longer grow Slide

David Farr

to be bolt-on It’ll more is be X% the it’ll was the tougher us. acquisitions slowdown, If closer to of the have to – have allow because be – for challenging very From underlying to it to to model to that number close X%, here. growth. to be our the based us get presented X% that bolt to perspective, we able going $X.X% to earnings believe X%, in going cycle growth on February, rate I we’re

make and do that on integrate that try to do if growth. while key up. bolt-on for to possible top to drive number more allow to plan of But But that through where me and the line get to sales issue we’ll have to we can that us going is, penetration, get we amount that is to the a some the that’s going aggressive profits to be have little be roll acquisitions that’s game is also

be acquisitions. will the from us integrating the then to core then If key for underlying that we macro point us different or in aggressive a That to And you on standpoint. target those bolt-on the from February couple a – it’s as look to lose we’re in can be the of going out we from the two years is about more the business, games issue acquisition important this on be even as we environment. and of, because laid much said, next have

potentially happen relative that on banking spend another would not XXXX, in XXXX something in I’m early Let growth now. what right on that trade the accelerate be scenario, we but

going We’re rapid looking at in with that. an bit growth little environment deal be to a less that’s

Andrew Kaplowitz

then about about think How restructuring target. could And XX% doing, in instrumentals? underlying as we should lower helpful. plus environment, we do that’s XX% you’ve still given do the the Solutions, all Yes, incremental on obviously, slower have this Automation talked growth? If we growth you’re

David Farr

to that incremental quality a within this back from make That’s get assets. why These are range. That’s a of are Andrew. eyesight we standpoint going sure that asset the after now plan. commitment lot to shareholders We’ve get restructuring made margins our up back that space need made up. reasonable and game to acquisitions margin those we profit we’re We’ve the

even, And perspective combination understand in the think number number incremental to backing that this team is appropriate his run after what little to a we more restructuring I we’re off to XXXX. part why from of It standpoint, a if what that longer might we’ll for early incrementally, take companies get to, year and us Lal but restructuring trying we’re our that’s done. next we’re number of do of that that’s not XX% And and going the in now that. it need from get back

Andrew Kaplowitz

it. Appreciate Dave. Thanks,

David Farr

the Andrew. Thank you. best, All


from come go will of today Tusa Steve question Please JPMorgan. next Our ahead.

Steve Tusa

Hey guys, good afternoon.

David Farr

Steve. Good afternoon,

Steve Tusa

more you’re like you like, unless them its send don’t some hopefully to for nice. in God sake Tim, world to but of sending the going Congrats know where I these part people,

David Farr

wife willing girl. an can She you – have for right I be to might mean his idea, to you But Georgia. to open gut got tell I’m that Tusa, this. you is to might going to a I if little talk can Louis about it’s – now. I the bit suggestions. not you St.

Steve Tusa

stole to just I’m to I’m you one. going that No. say going just that. say that

David Farr

be like be so in a Nevada? valley going what the We likely, this. gut Georgia. Not something it Most to some like, tough get could place to or get

to Now be in Northeast most going somewhere. he likely the going is

Steve Tusa

the the got it, Got it. I exclamation trends. on red love points order

pops But of stands are you’re specifically out. and bad more then one I I of base And then a your power, think digital as revenues power think of those that either selling on how that, you that follow-up within kind share and business bit rate discrete down a LNG, how was do really like less kind or installed would wise, competitor that, that’s order kind assume double-digit. in stuff. little doing and attacking to because

So power. it in gain of share like bit a a seems there’s there

David Farr

it’s solid a side, we’re down but… I mean So double-digit. the single-digit, not on discrete

Steve Tusa


David Farr

pretty been pretty all within oil has down and down you’ve the longer. Steve, down Texas mid-single its last somewhere discrete Permian that side. now X% out between the would where and just point Tim as The gas and take now has we are digit It all. system to seen a right it’s side channel, I say, Obviously, calendar good I way the The get process related time. that but going that’s could where for tough. But the out. not mean therefore I to and to demand the going little in the been see the slowed at of inventory the year to around back come at in it’s X%

this generation space. And the very to ovation. we’ve committed out to system bring On the control we next power side, are continued

committed all colder We bring power, to of highly to new services. supporting be We’ve out continued types generation both renewable, power, to power different gas. the primary continued particularly around

seeing So going back right I obviously, to down. But what we competitors out key winning based we’re against say are we’re now, not our on would there.

window there’s of opportunity as think we I at a look unique this.

as power we’re through I upgrading old orders. The And gas, going a new think to and year, solid months I needs this some These calendar to And primary finished and reinvestments bringing competitors last space. the up quarter in we’re good months new out don’t at taking fighting next the the single-digit trend at have for good in up at and I to it plants, I systems, doing look year-to-date, in there bringing all XX overall industry per And down as but out it. line mean, versus feel share. this are well this And a I start fourth say we’re I year, year. opportunities go we quarter point up and systems get we’re rid at of coal. time. again, let’s the us a for would to pretty XX our good look wrap

Steve Tusa

that OEM after? the that’s going But Right. base, installed correct, you’re

David Farr


Steve Tusa

are isn’t to I let going just year. your the how how to mean you Yes. you I’m confident mean, you not seemed extend, but kind in like you worse, your next getting that just that plans outcome, going And last macro, are the and said guys pause you customers then and one least but I you on your one of have have, the then things and the a this through integrate around sure election at before thinking? the little bit confidence all into uncertainty election

David Farr

to we’re plans perspective, our my here perspective. from going multiple From work

there’s therefore in U.S. going that’s got we’re to international But better allow look growth going better real to some our to going There’s months see we’re next you point growth. time. in see us where line a We slugfest very in business digit still XX factor Clearly, at to money. the for could environment. And environment than growth to get think we’re we at bit moderate and really this to that going low-single growth. in line an in little that. and little be I doing with a prioritize spend cost the

to investment cautious business happen keep be I’m in going business I’m But say I’m structuring very, their to the not a in they will but worried very like fine, things negative, way concerned If they’re be that opinion, that better, and going weaker pausing drag It’s to keep about happen to okay. get that or and investment being environment. we’re doesn’t it be let’s was you and my more very, and environment. that’s – reevaluating the about company we’ll it said,

Steve Tusa

Got it, lot. okay. Thanks a

Tim Reeves

Thank you.

David Farr

Thanks, Steve. All the best.

If ideas, you’ve him send to Tim, we’re me. send to going got


next Jeff go Our Research question today Please ahead. of from come Vertical will Sprague Partners.

Jeff Sprague

afternoon, Good you. Thank everyone.

David Farr

Jeff. afternoon, you are Good How doing?

Jeff Sprague

Thank I’m doing well. so. you. all Fighting through it

David Farr

Good. It’s always fun at slugfest system.

You get boring. to meet, gets he

Jeff Sprague

point. I pick on last up to want your hey, to No, exactly. just Well,

But guess in has your maybe indicated handicap stall And just of you of but use we no in one kind get comments a if the kind term, right. I tip worse portrayed than you really risk there? kind kind you a of kind from the – us how of of didn’t lower. would ball, speed. what what you keeps of outlook You’re there, opening crystal

David Farr

in as The key then of reevaluating to issue relative people is, finished close I we next which chance good start that, year, there’s it calendar economy of there real rest think really I speed. then okay global the I be think investment that gets will this to stall a XXXX. economy, And gets think year the

to about, we’re speed do to done things then our to – think we okay, we we going stall position sense our pretty before, have have relative got economy company. to if which close get We that restructuring the and right the the we’ve seen

that I close think think it’s but way. I going to stall now I mean don’t to that to all going Right go speed, we’re get

Fed understand that as to every economies have also, do stall the world you we speed. pushing the – really get Federal the Reserve around around to We world, not the accommodation make sure

Federal are the American, don’t the stall gone we get good to close that think different for sure lot go to a called into the around That that for little world it. that’s European, it chance But there we the at there’s the thing I in that’s sure hard think bit of Reserve I make companies a real because Chinese, one very, and out very financial don’t banks hopefully go So environment Japanese, make where time. figure there, reserves we a out gets pretty working they’re in have us. the And speed. ugly we’ll point how can to

Jeff Sprague

right, about it of margins, right. Yes. the being just kind quarter, ended automation And then peculiar separately, actually up so thinking just looking

Your down, actual dollars right. OP are

margins, just So on we’re down. mixed dollars effects not but OP of talking deals

now right, in significant the we a So pretty forecast. that to see we to into to OP as up look get dollars need QX, step

You automation you about talked some other on bit the cost last how number? we levers. things of that Could more visibility margin sweet little had on and us just price the on call QX bridge to give a

David Farr


quarter have I think positive there’s obviously good the way. on cost improvement fourth from a a that continues have, a move the way couple our in in pretty of They in things margins price third quarter. to did perspective going the we sequential

April, we year, I a and also flow of through. restructuring that that the of up ago. the restructuring is the believe The some other we May April in thing took and couple actions core back months start beginning started our in

So business is the down. things automation slowed

coming of earlier close same see was again. so well from which July, month benefits with and a last standpoint, sales the right Automation we’re true. business, flowing June, which for in did leverage month started profitability. Solutions we The those actions that very starting with on and things In through taking of the months to they a tough even couple remember, are you As some now

So key But guys. issue now for margins fourth for feel good can where good about they think and structure the the customer about line start where pretty they in got Jeff, the in right I pushing for quarter cost right and/or I my this that year feel calendar is in out. built pretty The these they’ve sit they they that me the year. tells now, been over – flow. to gut I the do that’s continue there some out the do get backlog of

Jeff Sprague

Thanks, Great. pass Dave. I’ll it.

David Farr

that. best Have All to on good a much. very Thank you the rest Jeff.


The of ahead. from next come go Dray question will RBC Markets. Capital Please Deane

Deane Dray

afternoon, Good Thanks. everyone.

David Farr

Good afternoon, Deane.

Deane Dray

to is pause And stall game here hear idea a which acquisitions and to that, period there’s to marry Dave clearly play uncertainty place the during say and of you would plan do that kind you’re going good – after suggests would be still acquisitions. when may of growth offense you where just the bolt-on you with you a speed. how do augment start, be it a and sign. good slowing a But high closer I Hey, of willing

David Farr

we XXXX, acquisitions, From into the which of XXXX. as some time, of into we the bolt-on perspective worked period, as time this believe move we we go the all pretty aggressively fundamentally early

near sloppy, – product Some kind gets we’ll bolt-on want got do in, slowdown, see out some these have those we’re like of interested we’ll want opportunity of acquisitions. that – and lines we’ll and we’ll times things the sloppy, to of that companies pop that Historically out. to that get we this to the things

And that where just go our the sloppiness going we’re because on top and and point they give to so, perspective. of these growth, And pushing gains try in yet, push going know we – the are place see of this the does cash up sell and to flow willing line. earnings, to we’re these we’re we’re going it’s with incremental going couple the a but now obviously us and the on we’re to pressure work to, nowhere their if from thing. marketplace we some and can of the one Obviously bank right to work now get pop the be

hopefully, That’s product be going repositioning, and couple be They’ll of work. we’ll level a these on small game it’s put the grow. convince and every from the let to of bit more it and going is is What going is know work. little tension sellers. to our through how top a that’s a how restructuring them down So to able going to company I lines

Deane Dray

pulling much an Got gets of of faster? How more customer extent, hear. the channels. then comment you’re Washington, end that just of but pause you’re with not of maybe being continue with influenced right negative that it. us versus because And slower, doing to But out a now you projects. become loop, by along certain seeing can how to that this and And us you investments, on the cycle, customers can and a you’re your your insight anyone a you’re lot specifics from hearing a some this down to saying getting are of feedback the share from than you feed that, because does share more those seeing customers push back, on power slowing you’re your a as from you power a this influence privy are itself phone what versus you’re are to follow-up, what lines on or

David Farr

perspective call gas made lot to oil. of LNG they’d we on from a of the world, From versus major – the a particular need projects base customer see There’s to our carbon, of the relative in we what lot go less forward. LNG from of been the been investments commitment. versus carbon commitments around So these standpoint coal

my perspective, going and a matter projects from going to resolved. they to go, things what when go So are just time they’re these get of

point we’re to could the time. China. believe And comments relative August, off to will always in this than It longer period table resolved a now September on firmly based and were get I lot things obviously initial take we at seeing time my around what discussions that’s

in look we that done gas And the investment needs be to so under some of leaving and investment downstream under downstream definitely I the product. the the firmly liquids the the side, in under work because in need investments of some projects, at that the

is The those not see or customer and can projects sell, my I visibility and see do where and go you’ll question to gets can that customer they forward. they these when gone. base to relative base get they where our have these transactions sell

in the seeing acceleration of because in other Middle Now, then in stall, projects demand some you’ll if East, is the United the start issue States projects the for gas.

get China’s gas or or get they’re to States. the United the still going East. parts it of to grow. other China is from to it going get Middle going going going the need it from from to They’re they’re world to

on about start for long being a talked let’s then out thing a time as XX base, time, So this the little at dragged months, that I bit. say think and right fulfilling customer you this we’re But the as what if next XX a I long prophecy. self think all now, tuning seeing months look I months, as to fine I look XX you

to quarters a too back we, different it’s time, perspective I And the at that need dial at on we for And perspective happens of been automation because resolved now my this in quarters moderate and this business. need think than We whining for a growth where prudent now sooner think. point the and time me in in reset back and things get very for couple bit see to little it’s way time. environment we’ve But growth waiting, see growth – of then dial in after start pipeline, to to the three of and rather what ask. do early look than we waiting it’s backwards. from from the maybe in point I’m things But Emerson we

time. believe question still else need needs sit. point at the of The I’ll the That’s that where is this than still it, I I’m the type anything of this they say I’m products. world more timing again, we still, energy, optimistic. in it it

Deane Dray

from add And can the you anything color Washington? about

David Farr

Washington now But XXX% very this pain it’s something It will can’t pushing obviously trade get all. support this forth. let XX I around, what’s back on We support we’re do to But do Again, another sit my benefits. trying can’t and do me, is it fulfilling lot with Yes. I add and obviously XX going there what in long-term at on months, perspective, I of Right thing about a got for because negotiations from and lot talked still a challenging done believe is other to done. creates prophecies. dragging self what it. I out negative anything the definitely thing this important we’ve nothing some for – get of months you that’s company. and for than of our

Deane Dray

you. Thank

David Farr

Thank you very much.


will next come go from today Our ahead. Pokrzywinski Josh of Morgan question Stanley. Please

Josh Pokrzywinski

guys. afternoon, Hi, good

David Farr

Josh. Good afternoon,

Josh Pokrzywinski

you Dave, tends can leakage out that it’s stuff kind little talk long down. typically but process dries, ink funnel a there’s state? Is think of not that where has committed until a closed there stay projects this or back booked. the about you in ballooning those commitment, been it do that I guess in How bit any where but to of something

whatever? the So next in months, how over confident you that quarters, booking are few

David Farr

where right States. United their funnel now, growing So funnel is if we look the at growing outside growing it’s

we large had of lot United States, projects So America a not primarily see, the growth to of we’re project in starting the outside bigger business. driven funnel seen North

bigger. to projects international So now now we’re to funnel a why starting enhanced. little the That’s starting funnel bit the at the Middle that at where East, America, into some getting see come of Latin the larger be some is Asia, are of be in be

Now life, we it to they There the from when projects product shelf my have like last typically – is, – we back these going that seen picked a that’s and XX been us see issue has this, projects, on XX situations, put Typically is shelf. going food these before. And six the this big it are shelf to one massive is months like at but not in been five, for three, months both the are historically projects. are to looking four, years. grow you’re These life.

So months if they unusual. months, get XX if to not delayed, X

you’re a too that, to my reconfigure. months the months, XX was From that’s XX it’s things there recently number changing And see billion, starting my months, $X.X normal. really to happens, until to this attention. so with billion, $X.X these start It’s up number and past close early say then way more it to now get this or XX perspective, got you going out if because nothing getting pretty and to number get

projects them And time. for think what of in projects me issue key gas lot this These customers a a watch so and I doing. start the lot see U.S.-based of are at point is these and

project months, don’t get the downsize seeing my that is want XX nothing it. months, this do sit to, start got but to of these it overreact of for magnitude – watch things XX perspective, think going it we we months, to you’re there a what’s then I XX so out And from reevaluation to

Josh Pokrzywinski

Got it. That’s helpful.

and XXXX it So about. to need from looking to projects have shifted that the that sales, a that as top know the and then XXXX. we of think on just shifting like that sounds to million about if but pipeline, I million $XXX the at between And I there’s talk number and orders of stay difference to out $XXX XXXX

You pertains sales to kind two of it of losing or maybe that. already as point were a

of kind cycle pipeline seems the very projects about shorter downshift. lot maybe the on about? Does half that the downside. some this of of excess project a that you’ve piece system It a couldn’t like into or no a that or three-point of that why in absence more talked or whole speaks two You doesn’t just assume talked or I that, to the the guess in more the that we destocking speak to given already decelerate deceleration are

David Farr


a think and lot. that always was anyway, never hard months on a because we gave in a there and hundred projects dollar moving, couple moving Historically, there’s number of always couple moving out, measure a I they lot of it’s on projects of move million to around.

a in little a of To there number be say that and million but I the bit of out is number a honest, hundred dollar. couple always than So higher Josh, was would normal. moved

I think I than so definitely – now would So higher movement the say normal.

would taken the feel we good see going talk a been we cycle the that’d underlying bigger out the the a it. So right year this for if a number does now. calendar And we’re off as that’s close there’s watch say time be movement from adds I X, about next rate and to therefore growth of X.X

But sitting you to would I noise but there’s And that’s moved till yes, been point and always off tad, always now a right that there’s number underlying think it the wouldn’t is panic, wait I end a growth. got because up the year in say good there. calendar you of if feel. a taken it’s I about get the

Josh Pokrzywinski

Dave. Thanks, Got good perspective. That’s it.

David Farr

Thank good. you. Okay,


question Please go will The come next from Nicole of Bank. Deutsche ahead. DeBlase

Nicole DeBlase

afternoon, Dave. thanks. Good Yes,

David Farr

Good afternoon, Nicole.

Nicole DeBlase

So Commercial I to just want & with start Residential.

growth flat a the for implies year. guided the little maybe a quarter. fourth flat, in of kind bit have up. And that’s X% organic guys you So above for step like It

in encouraging. of the you saw the some the a Now July, improvement in bit risk get know comp I since much to downside you is your fourth there could guess – little that little harder in do be particularly and have bit outcome there, how does which quarter. But confidence a I still comp beyond

David Farr

Yes. Definitely it gets harder last U.S. because our base of year.

a and One of the that we’re Asia-Pacific above there stabilized has are watching line come fact that things So good closely. very us. that sign for and couple that’s the now a China now

would AC concern wave, through, good, more call my sudden, wave would be not that on my a be side, Not the but – we’ve concern If in a retail would the So there. in this right pretty go had side. I concern all My would humidity heat now. be what of the USA.

nicely back. we’ve July. got back it I had challenging about well it’s that. dialed there, because seems feel a pretty bounced be extremely pretty, Europe pretty But June, in but Europe to coming hot comfortable it’s down. very

is X% fourth calendar fiscal which feel quarter. fourth that the business I good we’re quarter, to be around pretty growth Bob’s So in the the third third X% going – in to our rate or

I and right order now. came the pace decently. where to decently one we positive. in positive, got the the we’ve that came Even fact And one pretty was that think close I think a was month doubt pace see orders in month July the order it

to real positive think. close that I X% its So

us. but – X-K America a in put – you’re keep I around so we’ll and those China we’ll and there North think three our holding communication keep at And as we’ll things, and there, people okay for we’re we’re orders Asia,

So those now in I’m Commercial are the and watching Res. right three things

Nicole DeBlase

charges my just then on bit doesn’t of show maybe the a things getting talked a in Solutions, about mean, got you Okay, And it’s little better but it. I Dave. improvement. July. lot Automation eyesight, Thanks,

the then stages driving result. just that could early more you better about bit talk little what’s a If of July and

David Farr

ticks goes what, you June, tell it up after better. it’s a I if tough notch, a

underlying X.X% what I last what so we were And quarter. goes think with

Tim Reeves

Right, X, yes.

David Farr

picked bit. X, a so up it little

Nicole, in I a probably chart, that see can’t on. younger had come You eyes, because

it’s interesting. a saw So a little the ones a as What’s better. we saw impact China saw in saw in that’s the something it’s America. about bit Asia, good Latin good probably that U.S. We impact not We pretty We interesting, China. China

think wise, our double-digit. markets actually order So I international grew

business business was – Canadian And the weakness in North still America, the U.S. point.

see to little the we’re right between That held in go international nicely. for to in into this. fourth up a of that we bit I in we us orders that momentum up year. our this going – now this as give And will bounce So X% X% holding think quarter. And somewhere therefore

month, what’s month short normally. was a fairly in So this representation long it’s I for and July good us think, a it going month, and think was And a so on I of what not – the marketplace.

I X.X% reasonably So feel that well about now.

I be feel put thought it’s we’d let’s I other at X%. that Given to the going the don’t way, that. or fact, than exciting, but better X%

Nicole DeBlase

Definitely. Thanks, Dave.

David Farr

Thank you you very much, See soon. Nicole.


question come will Gordon John go of next ahead. our Please And Inch Haskett. from

John Inch

Dave. Afternoon,

David Farr

John. afternoon, Good

John Inch


to – I XX% the it So of project comment run wonder accretive you Is could the rate the pipeline. profitability hey, the large margin here? on AS if

David Farr

large Typically be that. will project XX% than lower

hybrid. a we what so do And obviously

large. talking you’re Now about

those accretive the the, us. are smaller circles typically I small sized the Now would and circles if you what are those there, call to in look at medium –

XX will So XX times that number tied it’s are a the or bigger – be lower-double ones there. typically digit

So fact projects us have bit. little down, that help the bigger right the does now a projects slowed given

to we at the installed that But see base. can funnel, you it because that get at we I there, if decent, get look But if looks can it. those funnel right funnel the put now, so look want out I projects pretty of you mean going, I mix

of there’s a this left bigger You can year. projects. see only big there’s The project size one lot small, in medium projects,

so that’s And a good mix.

quarter, and start going our to XXXX. a off finish As back good the I comments fourth on profitability for

So mix. the that I funnel like based me in that tells

John Inch

of thing. deferral, pure It’s quote, price the right? pressure of these So incremental kind a bid sort aren’t deferrals just that necessarily on putting

David Farr

large price look That you if that bubble of me, bubbles, at Yes, on the you in profitability and projects fairly margin at are XXXX. you therefore projects a project. already big smaller, those looking probably the those – even pressure be KOBX type at base. the to at going a Typically, black ones, the sitting I’m correct. Chart white, have typically environment. margin. going When would front type XX, of typically the you medium the bigger chart is have or end if but KOBX that are That’s be or I sized to typically And around look normal install be our

John Inch

for your you embedded be to software. companies standalone bolt-ons? more What – part of your Dave, some you your more around here the follow-up, some of then just are, as maybe would say comments supplement of bolt-ons, us types looking be Can percent of And kind what software doing might industrial And software? software as of sales to frame remind earnings. doing a percent

David Farr

acquisitions the a of you we’ve year, Well, at this were done look software companies. if lot them

And so the answer is, yes.

standalone So we’re this smaller key for did most is of Again, And find a them deals of – we for doing smaller software, we’re – issue trying we’re lot looking deals have a software, doing and that lot of type to software. a tied [indiscernible] the that around the embedded we’re at of been us. year

Tim Reeves

$XXX embedded conference million piece. doesn’t the As side standalone on at and slide that investor should software our include We the

David Farr

doesn’t included. It Yes.

the and So we systems the But software the there we less into now, have of at we within doing business. lot million about to which our more common it drive $XXX don’t look million. products, and then out base, but drive I around we’re are specific deals a embedded, The space is a automation you did – And the $XXX as standalone break control yes, think trend if lot this customer they’re that’s we industries. based. right into

Again, a out there. it’s of lot them not

earnings got that’s drive, opportunities make as So out, to They’re you soon issue sales, them to And Frank bolt-ons and to and for and get to creative, year. deliver we’ve the a gives me for through important you add as to organically. acquisitions got us key to a time. few operations quarter deliver are long going get to We’ve done smaller. have quite plan And profits us but they’ve we be a top the relative points as to them this to profit. can the have to line

John Inch

be that earnings the would But to right, it deals find stuff supplement strategic sounds more of like nature, the those would trying versus that…

David Farr

Yes. – I about Yes. When Yes. Yes. yes. okay, talk

automation, not hope talking within our you’ll at about or going core that. I’m get I’m the type looking to I of sales, I’m acquisition Okay, business, core of and cash take EPS. core not within mix. about within to talking bolt-ons out, the earnings going do and business out flow any

the slow, clearly that Now these – are get to really within speed. from get core perspective, my things stall

to to how February. aren’t we big bit these question, in XXXX somebody period, organically bolt-on space to we’ve how – figure a more going first get figuring time have closer within on, integrate back XXXX, that opportunities and the deals going to going we’re little get out be have asked so aggressive for in after sales going do now, there going smaller that. see in And to Because what early core we think to out right be quickly to more have EPS deals them me to our back them to the we we’re a I said bolt-on to path very pop forward. of to to and in unless got growth coming the pretty

John Inch

Canada. That’s a I good him sent And point. you. Thank to

David Farr

problem. the Calgary, mosquito where’s Alberta, worst

John Inch

I think, everywhere. it’s


Suisse. today from Please Walsh, Credit Our John come next will go ahead. question

John Walsh

good Hi, afternoon.

David Farr

Good afternoon.

John Walsh

a We’ve market. the out I mixed of that question of markets. hybrid bit around guess, maybe heard commentary a first little

hybrid Sounds a very maybe it’s your still there different because just couple Do seeing. you’re well share like you we’re covers doing because end what think you’re taking of mix, of markets there.

David Farr

exactly. Yes,

we’re our business our strong from life into perspective, the science. So pretty clearly, hybrid

good have life the we beverages. we we food – not automotive, space, we And the in have run and I’m semiconductor, hybrid don’t had so life in that pretty the From have sciences, sciences. we’ve some a perspective, don’t have

We have that. in mining some

our not mining hybrid The And to life for so been doing us us. been primarily and us, that it’s that has has for for been strong been that’s good sciences area the food but pretty relative the and good business. beverage

John Walsh

think margin Got then follow just you. as maybe to levers. question on, a Jeff’s And around earlier in I maybe

it price I of will price forward? cost fiscal positive think in as be cost run said, you you the but again that you how balance, QX, about think kind do

David Farr

any is, care not than have come primarily tariff of aggressive us consumer key the commodities a us, which additional for issue now, the action down, aimed approach. is other Right XX%, more excluding at is industry

balance our into think, price green. good. going pretty is XXXX I now cost right It’s

are But material this faster could still People growth. the going had to were thought things we and Now those things last see in, time, at we with. year change tariffs those up. coming you we’re about have thought going deal to

so of little we are in looking place And at environments. bit a different type our

us early should moving we as we we our have stages this sure at as we out. in discipline about feel the okay obviously and in the So to the issue time, start it it’s of around for make now and price the cost. line opposite And is way. it’s green and costs But look year price be right XXXX, the key good keep

John Walsh

taking the for Thanks Great. questions.

David Farr

best, the John. All


Our next question of ahead. go Julian will from come Mitchell Barclays. Please

Julian Mitchell

Hi, good afternoon.

David Farr

Good afternoon, Julian.

Julian Mitchell

question first on in a Maybe Automation Solutions China.

three the tends up or to a downturn. guess XX up have and in three of turn. Historically, four end month my what’s this to been industry good China turns year coming You’re up very year

think is perhaps priority So risk outlook pushed next you’d how list which in whether on terms just of companies, market EPG. turning assessing And seen orders, being the you’re China, U.S. down the evidence I something of year. mentioned of down any more at that back wondered you’d in

David Farr


is month, through the this the on So cycle good. still cycle pretty

to very Solutions Automation at solid and growth sales looking XX% orders a growth. We’re X%

look self industries, there’s I obviously imports more base become sufficient at less customer final to and lot industries As the a we’re of Chinese is serving, of trying that goods. so

into that’s that as aiming move see XXXX. I we changing So they’re where do not their investments.

right five to is six to likely into, China is, maybe now to going As Asia growth. eight my for to turn say, at type initial or most let’s for look eight, X% XX% XXXX the of

more not, looking slower finished build industries the for become because self building have They’re companies, for relative at it’s they tendencies off But what serve. European that foreigners. infrastructure. we’re mean, your I’m a to So to sufficient yet, be really Julian. too. companies nationalistic to they haven’t could to just need point, out growth the drop not to looking to trying companies. in – It’s we they out what not I Relative I it called the U.S. relative all Chinese

being about, customers we’ve look relative some American. The foreign sources has or at for trend points just seen pushed to continued European standpoint our you need pressure the sources not of via to companies some alternative

discussions the okay, the underway. that of smaller that I before, continue discussions we of time. companies lot it’s long as still will obviously, hopefully, but to trend will be as the foreign piece a are really a are something trade marketplace. spend finalized trade And we’re pushed think Right now,

our and just in customer’s our people Mike organization, was our have in customer going organization week. going Lal Karsanbhai next sales – We is here, organization. supporting

be I’ll in a of And the less month. going within about

our right but as with now, negative the haven’t concerned we’re there’s Right astronomical clearly would with we’re growing nationalism mean, sales now. of something seen or customers. a spending So our growing not fighting. I very I and lot Because not more, it’s more we’re be trends little bit about a time and we of anything, we’re

Julian Mitchell

Very And destock think then automation across quick follow-up helpful, much thanks. around just partners needed and would How channel is your be you levels my inventory do among your CNRS? and assessment of customers.

David Farr

high. too still It’s

as Given the inventory June, normally not that June. inventory, down at did the Emerson’s slower our come fact would look if it – with in

sheet that. of indication there’s I a there. – balance mean a we’re So out Julian, good

end So would look our third the – the I perspective, this channel from see, my by now, inventory done you could quarter-to-quarter. normal from did And calendar level quarter. think not channel thought of right like drop at – be as the I I

be to going is we’re before the destocking done. think, I well calendar fourth into quarter that

so not I that, longer. to sense That’s going it demand a it drive to to looks are the take it’s cautious weaker, going therefore the very is people to we slowly. the demand very think, Because little take And destock how is it’s me. have and to going and being down

Julian Mitchell

thank Great, you.

David Farr

All to you, Julian. the best


question Stephens. next Robert from ahead. our And of today McCarthy Please will come go

Robert McCarthy

Good afternoon, me for Thank fitting you in. everyone.

David Farr

the I Clearly afternoon, mean… Good Robert. cut may offline,

Robert McCarthy

bit Arkansas later month, I in the in in guess, right, a little any we’ll event. see

absent What focused of to The a make look number larger discrete you’ve niche from opportunities and cycle, down other longer point? might But is over Dave, in sheet particularly deal you and term. in first question, been do state your a have of your bound bolt-ons, of question kind balance side at obviously you of remains on outer larger the at How the think your the to the equity? ability this use do properties. the

David Farr

as of looking we’re it’s the made acquisitions at this From where repurchase. year, going bit our perspective the be decision show to standpoint, little share right deals our the board, we high not do we the obviously, now From and deals, a to more there.

see the First say pipeline being months, strong. didn’t we the, first six

we’ve So little share bit to more made repurchase. decision the a

billion we clearly point, before or process trade around started debt completely of the a can of $X we transaction and $X leverage a in EBITDA to the up Now, that. this at I all that do but stock little type bit over if look margin billion our whacked discussions, get

not and have we out room lot billion, billion, $X billion $X $X So of plenty a there. $X billion, deals of there’s

in through could to And we get we a think the the we I the then back get repurchase So agencies demonstrate have going we’re as to to now, Frank actually had issue is, past. dial back that ratios got our key knows, which share rating we’ve bit. little obviously

Frank Dellaquila

mean, can foresee. there’s do issuing We contemplate we would us foresee cause everything can equity. Rob, we Yes. that can I reasonably that nothing sheet to balance the within that

David Farr

of we billion. $X deal, $X biggest as billion, type see type – we’d level see The deals a of the

our allocation, the the capital do an do did we in whole of which we the that the see deals this the if level And this So of and go share continue did month, we and good committee did process necessary. last June. with to in opportunity morning also with ability – through have brand comfortably we show within repurchase And Frank. to acquisitions ratio the June we finance as we today well board to we are pretty last

Robert McCarthy

assumptions on whether the distillate if of kind the in and and environment. you’ll what going there at to spending or share look for sideways questions, you to low is smaller intentions midstream put build or refiners for a around reduction the if they’re number sulfur on IMO the prevailing that any. then what capacity Two look seeing forgive we intentions And that two, a modest given me. going you’re forward, One, cap CapEx have any could

David Farr

year. had we’ve to Relative back days. last asked, this we’ve capital, XX Yes. capital We’ve here scaled sessions the

this to year is be up. standpoint From of year, have capital to take the next $XXX So we capital around going million.

have, the I’ve said, We X-K press release. also in as and I think in

some – We years. two on for standpoint as three now we’ve of our some acquisitions the have issues from had or

manufacturing. want do cost where doing best We optimization the are some to now we of

have make XXXX. investments to that want we getting and some ready So need in in for to we actions we XXXX XXXX take

So next XXXX. of X.X% then level, as this locations my to move into go we right allows for and we around the years prepare are into for move up probably us manufacturing of X.X%, perspective couple as – spending now, this better from capital sort and the our XXXX

we bit up than need at this little But higher and taking needed be see structure can in what year. for because to So, in we’re we push XXXX – evaluating everything right around I right the the the XXXX, it we XXXX Do now, do capital or it numbers it I we of now. as XXXX if capital look out. will back

think same thing XXXX. happen will And I

spend have back know, So money shaving as next now time, and we I’m going well but you we’re money then to year. it put to to We this. balance the try all some in

Robert McCarthy

And then IMO on the quick. real

David Farr

to about give by after projects the can’t insights. never on investments you and specific refineries they’re yes, I have, going that. know in today it, and I’ve that my haven’t we’re list it the at guys, folks these I I the doing – to pretty don’t do But But keep talk up. still a high we’re It’s recently projects going on bidding don’t project more of know. now, KOBX. tell the me I take field on. I tell I look say, still give going I right winning. refining is can you going they’re can’t to number you

year, they back capital as there’s be see in But refining now. they moving that at they forward out if move later XXXX. what something this So point I start if right list to projects back a the time of in type lot the good look That’s to me appear and I there. of spending now, this space. scaling scale Will project at really they

Robert McCarthy

your time, David. for Thanks

David Farr

Okay. care. Take

half forgiven ask You’re them two questions. and for


Goldman of Our from will ahead. Sachs. question come Please go Ritchie next Joe

David Farr

How Rob, prayers. Hail too you tell you of doing? trying quickly. – me the But hours her got Hey, Joe. and off before tell to church I tell you was couple – ran Mary’s off to Rob

Joe Ritchie

He’s already Dave. doing them,

David Farr

Yes. doing, Joe? How you

Joe Ritchie

Great. great. me Thanks in. fitting for Doing

the lot still then. of But now know, and how I and you are backdrop light about expected. guys more in what guess, revisiting is XXXX. a that it’s can point just we challenging longer away it’s targets So challenging bit ways been between obviously, think you thinking look happen backdrop do about the little for term little challenging? your at being a than or all you now more bit I

David Farr

what meeting XXXX the time, board finish the this our that as year. board their – the grind slowdown bump we board grind could very told calendar today, grind – as XXXX be the a things today the of we told we next we during because issue it As is had same hear we’ll XXXX, we in bump of as at for months. a – we’ll, three here they from And customers process,

two So window a going because we’re issue. year of basically, through that be to going here

doing into back XXXX then or as then Going things year we slip And grind to stall pause we and then speed the a or We’ll this year later be we go acceleration time good XXXX. out. to really as question, here view XXXX. finished in into XXXX by going be finish calendar very this and that is just away the have it’s a a we

being So that’s right now. or am at feel I I how realistic. for to we’re to get being I a going cautious too Am go my want customers.

And get feel for so a it. we’ll

Joe Ritchie

like maybe sounds it by mean potentially I next Day the Investor update year. Yes. an then

David Farr

For sure.

and update – lose not an will this have without myself year I calendar communicate my sure. board. leave For

good have a go some talk crazy at and that doesn’t other Relations I So that get. works pin tell job, to XXXX, sense, sure make guy and good I It do to new he be Relations all for you’ve thing better better guy. sense. you, blame Investor looking to him and want I and Never make the I and one, because I so, I out there not Investor got I’m a crap guy surface for can some see good seems one, have seems to is guy.

Joe Ritchie

in, If thought I could fit your comment… maybe I more one

David Farr

more You in. could fit one

Joe Ritchie

in agreements thought you impacting driving think your environment that’s LNG wondering interesting. was do trade investment slower the take a that’s here Or see from of partners it seeing earlier that what U.S. I’m is investment. Gas and the with kind is I Gas/Canada commentary slower U.S. Canada. happening Dave and just gas Asian that impacting like, environment you like on, off

David Farr

agreement, not that’s will America. House North forward sit Because not that XXX%, forward. to is our Asia XXX% will in without – off discussions, I’ve Washington the stuff. told China some investments will these trade White told anybody semi-process needed the in processing, there. – in these And particular, because I’ve the move move And once take, there, need they

where Now even Because pretty some trade without that sit, they the to agreements clarity going can they if XX% investments natural China. exporting, the move for be is quickly, the These going internally, forward forward. not gas is of around of move going States forward between change. in United XX% investment because will discussions and but whole your process to

important. very that’s So

or Louisiana, for while in the what Southern back think then that and they’ll and see sit we back goes is to XX it relative we do board? make go to they’re number I reevaluate to and to So there that about, for I going Southern drawing Texas comment to XX call my where or a

Joe Ritchie

Thank sense. makes That you.


of of come And ahead. next Obin go from will question our America. Andrew Bank Please

Andrew Obin

Hi, Good how you? are afternoon.

David Farr

afternoon. Good

Andrew Obin

I also on investments to the service of part know was question update sort product. investment your discrete to flow a the strategy, of strategy because Just capability, control capability, investment

given your So product down? to we about internal how investment slow think processes should

David Farr

two very and we’re serious side to of and bolt-on get we’re going planned where important as GE investment over power to investment we’re through originally. ovation we going go our process And going that on discrete around next between done years, That’s figure the and going us. prioritization how through we side, the the invest to – the side. We’re try a the very to the acquisition the out

trying side, we’ve the been at good given seeing and year, keep come to number well above On that very this will in we’re service KOBX KOBX number in the I think in opportunity cycle. because a XX% that

back and We’re going we a investments can what to stopped out do those continue figure we can cannot reprioritization it that them. to how again, of we and But do. goes going

And figure discussions one say and area my protect. I how allow members. the to need I we That’s will run, will my OC out would in say, to would discussions that

And continue opportunity. and Now we be we for I that’s area have missed bit to may short want think modulate but cycle, growth a for don’t Andrew, to penetration little opportunities and long-term. I this an blinded the

been modulate continue good that So going in forward move I us think to and to It’s continue for very see so us you’re to far. area.

Andrew Obin

have always is Global you question, of a cetera. good follow-up a just doing, And GFI doing, what Thanks. Macro Global very sense what et

at would right Just are and the world today, U.S. China GDP what now? guess growing looking GDP you at as

David Farr

low-Xs. growing U.S. right is now

again. – will I slide there’s it think think, I to continue

– this at in years trade, clarity we get could go it the below move You that point actually around until below current level X X go we some next easily next time into year.

that continue rate pretty like have say, residential business, growth in good growth. % back but China two growth of tells a you back, of think is stabilized. And China. or things slightly seem of grow, type or that or we me commercial pockets X% has more Bob’s a business And I to to three think it’s I of if positive X four months the

rate And definitely my from figure slowed. up trade are hitting from world back global now, the growth and got speed. the negative around is a to right now big being Feds we’ve right growth stall So keep perspective out quite pushed the the rate trying But down. that issues to and the how that economy

that’s So at offset on going this and the point key in time.

Andrew Obin

Dave. lot a Thanks

David Farr

to best the All Take you. care.


And next will from our Fargo Raghavan Deepa Wells go of question come Please Securities. ahead.

Deepa Raghavan

Good afternoon, Dave.

David Farr

Good afternoon, Deepa.

Deepa Raghavan

that that Automation AS, invest continues and infrastructure have expectations? a thought after you’d there I some of what have so within are are this verticals helping China companies that’s are than to cycle. And that. been the been have ones follow-up But some that of performing Dave, in in better losing a Solutions, steam which region. your lot the versus

David Farr

Deepa, So said you’re talking we’ve China. that there about China specific and

Deepa Raghavan

Automation Solutions, yes. China Yes,

David Farr


lose So some There’s they’re power China the that underperforming, standpoint, they we’ve within from thought priorities shifting of been a industry. would underperform. power seen the around steam I

year. happen that’s from what would thought I earlier that So this underperformed inside one has China

are a talking to well. pretty I in held looked the investments, that’s in we in of the I first there think, investments nicely, pretty nicely. something look X%, now. I chemical I well around we where there forecast were say if X% process the right there On – side, are XX% in so I some went of I’ve would some – that, and year, back refining beginning those at believe held that X%, of held at pipeline that the the In gave pretty X%or when seen if China they’ve a I that, like basically and XX%.So X%, to X% pretty,

So is is and I worse little power little chemical bit better. little say bit would is bit refining better,

that’s So it where is.

we where – close how a And industries you said, shift little would that’s as to we now. it it’s see around I And bit. be. pretty it’s thought We’re right

Deepa Raghavan

costs are Are Emerson? taking weak? it. for is My is more Got the the follow-up based across down that Thanks controls. verticals Or cost on you along color. that broad

David Farr

Emerson. Broad based across

in take and the we’re take commercial Bob’s is So to out same the some of places and anymore. thing. needed out gone looking at and he’s layers, that Bob we’ve the through necessarily his can the some accelerate and acquisitions structure corporate residential not business in set with of can Sharps, process trying at its Lal we same the we’re we team motion thing, – doing integration situations the looking in

simpler So much without standpoint that we’re as we at areas the from do looking of things overhead. can

and how how that We’re trying out we’re now to that’s right going it. do to at figure

this that So it’s calendar sure, – in type have we in started of environment. very tuned near run things them people this the focused for April we want we’ll the and to the make way we in all year tuned way to

Deepa Raghavan

Great, much. for fitting in. thanks Thanks very me

David Farr

welcome, You’re Deepa.


Khanna Cowen will Gautam ahead. question Company. Please come from next Our of and go

David Farr

question. Gautam, you’ve got the last

got you barely [indiscernible] You just –

Gautam Khanna

is asked on is about high Well, I and June the answered. the I’m lot have curious what really not if XX the questions X buybacks. of appetite over framework to XXX you One mentioned repurchase to I board next in but activity there M&A been was recognize curious the of months meeting, pump much thing is level QX, there’s just the an the way in higher?

David Farr

– the a to billion. we of $X billion – don’t our several sheet, – capital flow being allocation range leverage a we board couple what the medium We types we keep see balance $X had have. of of what the to try from show to do think see from flexibility. – I we cash deals we billion, enough doing, the larger site standpoint If

the think this of billion range I in per $X $X.X that to So right share in feels very now board repurchase. comfortable year billion

moving the deal, down billion share billion somewhere year. billion at start to would of is we whether to you Assuming would $X that billion, to back $X bit $X.X that $X If I billion as modulate that moderate into and towards, billion between per see alter we’re back $X.X we a little $X under in say repurchase. looking

board don’t going if all repurchase. that – see us it’s I everything, deal into And stop. not but and pop So capital mean, see the we I really share the I flexibility, don’t would show to our

the bought think, I over consistently we’ve stock years. back

back XXXX. million bought knows, that shares it’s we As close over since Tim XXX the to –

high, Now quite bought the impact million net not XXX we but back that shares.

a a based changing buying higher acquisitions reasonable I is. basis. now bit Hence, a strategy don’t consistently that’s us that but in weaker, very XXX about the some are board what marketplace, And by on fact little why flexibility prices. on up And we it comfortable in to of our I billion And see the year. taking the the feels market’s so the gotten XXXX consistent the $X.X us talked of think this hindsight, with gives some board we

Gautam Khanna

you. the thank Appreciate color,

David Farr

want for it. I everybody I to Gautam. care, thank your Take time. appreciate

As bit bit year months aggressive. you going what’s guys want very old. he’s Doon think do today a is know, a is and you on. be candid different I about five, let four birthday And Rocket’s I I than And try about Rocket. to more Doon one to know is that little doing little is

breadth Investor of and I Relations now. And together. to so Tim got Rocket get go a guy

it for will the that’s your done continue I thank you’ve want and the and company. to for is. All to time thank the organization So everything what best. I everybody for do want to


We concluded. now attending disconnect today’s is for conference you now may presentation thank and your lines. you The