EMR Emerson Electric

Pete Lilly Director, Investor Relations
Timothy Reeves President of Professional Tool Business Europe
David Farr Chairman and CEO
Michael Train President and Chairman, Automation Solutions
Frank Dellaquila Senior EVP and Chief Financial Officer
Lal Karsanbhai Executive President of Automation Solutions
Robert Sharp Executive President of Commercial and Residential Solutions
Mike Halloran Robert W. Baird & Co.
Nicole DeBlase Deutsche Bank
Andrew Obin Bank of America
Julian Mitchell Barclays Bank PLC
Andy Kaplowitz Citigroup
Josh Pokrzywinski Morgan Stanley
Steve Tusa JPMorgan
Robert McCarthy Stephens Inc.
Joe Ritchie Goldman Sachs
Call transcript
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Welcome to the call. I would like to turn the call over to Pete Lilly, Investor Relations. Please go ahead.

Pete Lilly

Good morning, and thank you, and welcome, everyone, to Emerson's Second Quarter 2020 Earnings Conference Call. I hope everyone is staying safe and healthy. Lal by Senior Chairman Chief Business Executive Executive Mike special Emerson of joined Officer; Chief Financial President President am of guest, also Train, Dellaquila, President Europe. joined Residential in Frank Vice President; we of I Commercial David Bob Tool Solutions; and Farr, Executive Officer; Automation and Today, Solutions; Executive and Sharp, are Karsanbhai, Professional President a and by Mr. United is Tim still unfortunately States. Reeves the in who is stuck

begin, And over Mr. we it before I’ll remarks. to David turn opening some Farr for

David Farr

Thank you welcome very much, here. to Pete. I everyone want

For as you have your I are been showed OCE Morgan when I on my We from throughout in we has properly J.P. as Emerson always process. conference open March conference when been XXth room, information, York we back in New operating, this was came and decision spread a at the out presenting all whole sitting made up.

the OCE decision And so, with open. I to the made stay

We have here day. the every OCE

are out. spread We properly

this guys you office As complex. know

also executives constantly floor. decisions. on get together making to throughout ongoing we making about other basis We We an decisions, make this sure XX have are

and decisions to but very, a issues opportunities the make as very workforce from with are We was I look of send can a from also rest here, salary and were this arrive crisis they standpoint, company. with and important deal shut competitive a winning both – home I we working structural the quick them But home. it from standpoint down was and keep at quickly felt that we and

a masks share involved Island. in Rhode quite to that are We coming closely want with you, running plant new equipment I world testing in the making and very equipment been slide I equipment. around work up Arizona. times the slight Branson up Honeywell with we opening sure to issue has The make Darius on and they masks with welding that several talked makes this where actually got allocated with Honeywell That’s makes

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it sitting back again, over Pete. I we to to turn here So, are But want here.

We are Coronavirus. that properly doesn’t Tim spread get sure holding monkey is Raleigh it making out. my and

that, So it’s Pete with yours. all

Pete Lilly

Thanks, Dave.

presentation, I slide As please encourage is available website. everyone usual, our follow on which to the along

Slide quarter. to the the of X results Moving with

drop below expectations, in was dramatic spread decaying the growth three Underlying build-up. X% well global sales driven Trailing down March. modest backlog were demand Covid-XX also indicating the down reflected in as X% the some by but environment, demand orders by quickly pandemic month

driven $X.XX, quarter earnings adjusted ongoing of lower share exceeding well effect. restructuring adjusted profitability and starting previously stock Despite cost up plans take EBIT lower margin to to to on and sales, due due for the actions. stock year share aggressive a were GAAP platforms peak last and earnings both to their adjusted actions EBITDA executed and initiated by primarily were per X% flat QX in restructuring lower started per compensation price

orders underlying well expectations pandemic X%. were both X% Automation Solutions’ below Residential sales trailing were X%, and underlying sales March. Commercial down taken the also to were down demand and environment due month initial shape three Solutions’ down and orders in

business million, up returned solid of over million flow and respectively. The $XXX flow quarter and to share $XXX in over of cash and in dividends. repurchases million free Cash cash in billion the over $XXX flow $X.X operating shareholders $XXX including performance XX% was million with XX%

continued aggressive in plans its actions and Lastly, of the built cost company upon reset initiating quarter. million the $XX restructuring

we’ll X, the to cover P&L. Turning Slide

gross that’s price. SG&A and the costs XX.X%, sales favorable margin price points the declining reflective XXX percent actions to containment offset a was flat a due as quarter compensation stock Second basis decreased lower at revenues. in drop of of cost share costs

lower exclude Adjusted basis EBIT and and points adjusted XXX basis respectively. and effect. reflect increased cost points These with related actions primarily taking aggressive combined XXX cost EBITDA the restructuring margins, stock which compensation improvements containment costs

investor out company the laid Overall, to our plans February conference. were which at execute continued margin on peak

to sales the for addition year March and became with as the responding additional actions, challenging. remainder of the outlook in deteriorated In quickly economic increasingly

to based rapidly quarter their in doors. the countries spread broad quarter most turning we the X% which virus and X% and as Slide and unfold XX% down for saw respectively. closed really the showed a weakness was U.S., Europe, in March X. over Now forwarded strength finished in the down quickly particularly Geographically, which

to segment execution $XX strong turn measures moved price dramatically stock quarter. margin XX Total Please declined. EBIT compensation operational Stock cost Slide reflecting basis XX.X% the adjusted sales million to the control aggressive points X. increased as and as the lower decreased in cost

$XXX million ending to by performance higher sales a working Trade Operating by in cash was representing and cash of March. QX demand XX% as in drop converting. free the sharp inventory as flow flow increased XX% solid. due cash million $XXX percentage ended XX% increased capital increased to flow to

due to Covid-XX, lower EPS reflective volume of quarter Working see declines adjusted non-operating lower to interest by you Adjusted the while due Turning bridge led finished to will EPS XXXX $X.XX. we price. X, EPS. cost delivered our tailwinds a $X.XX stock totaled share declined $X.XX, and share repurchases $X.XX. second at from that of Operations $X.XX, Slide lower compensation

operations. offset non-operating summary, by effects In on the tailwinds of were Covid-XX largely

versus of EBITDA year. segment total a by $XXX EBIT sales prior XXX adjusted adjusted by points X% segment lower and points basis just total on increased reflecting Importantly, deleverage basis XX increased million

Now the we will platforms. business review

for declines down The in sharp XX% food China as the down gas XX. while oil over Automation Turning more XX%. to sharply and sales dropped and life in growth offset Slide was U.S. some Solutions quarter underlying than and finished X% sciences beverage.

underlying months three in cycle relative on profitability Of X% driven down longer platform environment. last demand and respectively. backlog sequential the panel businesses, delivered by orders X% very a which the and X% control Trailing X% grew quarter strength nearly basis billion note, grew challenging of the systems, by quarter. a The to early compared $X.X strong to were

brought up adjusted for and the the across XXX first EBIT million EBITDA total to $XXX and totaled actions margins reflecting taking Restructuring which of points Adjusted million year. half effect. respectively basis a XX actions basis aggressive $XX cost points the were the platform

XX. Covid-XX. also by Turning to while sales Commercial America deteriorating Slide the the in than environment X% underlying was with tools were and dropped Europe more down as of low-single-digits business momentum offset dropped business. demand North modest in declines Residential ecom X%, Solutions the reflective

XX% three mid-single Asia, which months each orders and were Cold Africa was underlying of China Middle digits. X% East the over businesses were driven HVAC, at XX%. down by down Chain, Trailing were down Tools down sharply and

XX%. Asia China, dropped over which orders XX%, by dropped driven

cost EBIT price cost This strong Commercial basis & also and points aggressive dynamics. control, favorable points delivered outcome up actions primarily EBITDA respectively. by XX Residential profitability basis and with and adjusted adjusted cost driven XX was Solutions

a figure the the for total to first $XX For half. million restructuring quarter, which million, actions crossed totaled $X

speed breadth outbreak we the the of XX, guidance. has Slide to will review the been updated and of impact The truly Turning Covid-XX unprecedented.

see challenging of first the we next environment such, the for half of certainly a As year year. remainder fiscal very demand the and into

stabilize in prices oil will we per the that Additionally, assume barrel. to $XX $XX

but is underlying X% Later comparison to in X% government on will year. management our sales down conversations the analysis officials, be to here and expect outlook now net summary. previous to we be internal Based detail, call, the for sales to to down the X% elaborate XX% with in downturns, customers, on in

restructuring increased deteriorating platform. the Solutions $XXX with to the demand $XXX – Automation from comes and be coming platform approximately million Due and $XX million approximately the million from Commercial spend to Residential environment, coming from Solutions we’ve

midpoint. reduction in XX% of to We now EPS a expect adjusted $X.XX, approximately range at the of the $X

come at approximately a $XXX resulting operating approximately billion been flow spending million billion. cash expect to million flow expectations of CapEx cash We to $X.XX have free in decreased $XXX $X.X by target and in

tax for back repurchase Please year the favorable starting items have XX, $XXX of of the point our share is bridges adds XXXX turn EPS updated $X.XX. we which is now which program million. to XXXX complete bridge discrete guidance. of of GAAP adjusted $X.XX and The of at approximately $X.XX excludes XXXX Slide restructuring. $X.XX our Lastly, EPS across, EPS Walking adjusted

a headwinds $X.XX across of comp for Operational headwinds $X.XX, year total walking pension. Now, FX, we this from stock have dramatically increased. expect and of

headwind. $X.XX $X.X approximately year full $X.XX sales prior our - a year by reduced resulting have We billion in from plan

expect from and We $X.XX EPS repurchase of share interest tailwinds.

EPS EPS year Of resumes ahead half. EPS average fell guidance, EPS by normal transformation us year to and $X.XX. year well the to the over full a full first our half of portfolio gets note, of major since adjusted This of year XXXX is XXXX the adjusted the This $X.XX XX% full to end midpoint estimate of approximately which XX% of of pace. first XX%

The out industrial spending underlying Covid-XX low lays and combined quarter in prices associated with to near-term markets guidance. for reflecting elongated the and recovery quarter is our dramatically Please from negative XX, in XXXX sales Slide turn a outlook third which reductions. challenges lockdown, the oil

to XX%. Underlying is to sales XX% be down expected

adjusted XX.X% in EBITDA see the control the volume. expect excludes We and plus reflective to roughly restructuring $X.XX, XX% million adjusted quarter. $XXX reduction range segment in EPS of which adjusted or the total to XX% of somewhat aggressive planned $X.XX, We cost range XX.X% minus measures, the actions offsetting in of EBIT

to to Frank will turn Dellaquila Mr. I Mr. the hand and to Mike and liquidity call please now Train And XX. over discuss operations. Slide

Frank Dellaquila

Good just has. any a minutes wanted to spend to liquidity, We here on few concerns spell morning, everybody. anyone

We we shape. take in never for this good believe We are really granted.

complacent never in position as we downturn are very, are but strong the enter believe very we here. We we

fund quarters. expect next of saw, we reduced operating to cash We capacity have the you our several over dividends we and as despite internal our the fact just that all – flow the needs

you of debt-to-EBITDA We in walk those and at a downturn year liquidity at just two our good total we capital down end XX% have points. our result will have structure term a and as XX, debt times even of Slide in begin leverage we in than debt on less very plan. modest this amount is

$X.X is At March of a of More day that than at notice. available most cash. billion next same day on or had we half XX,

should very, April shape are we be very a $X.X drawn it’s which billion of So there through not we and a XXXX. is in if and disruption market good have revolver, also committed

the revolver. the we and the it to We also under financial are in have current covenants all terms right extend in

are we in all, short-term in good and our all we term, at shape. feel as So, very needs look our fund longer like to we ability

turn If market program. to it begin this was when please you the first, because difficult, we we the in – we to wants began extend to see maturities started when coming to CP Slide XX, mid-February, royal. somewhat in At

It and here that in improved work – and maturities from in to couple directly through get as a about of down. stepped and billion we been we buffer we start comfortable we’ll will time to including support XX XX we’ve CP extend States, when a $X that, the cash that days United that are the and announced the commercial we and revisit payment able and result, here to out half, the built market included month as improving, which over the indirectly if a last in things Fed a go programs to days

to But market think conditions. that a that balance on have it’s be prudent for turn case downward just the should in now, in sheet we there

pretty in also for debt this beginning of significantly issuance evaluating for a companies in are pretty are Credit since come cost in an quite term crisis. term and spreads– all bit of attractive. We debt. investment-grade then They’ve the

a obviously more are looking toward the with injecting So now into liquidity we capital view at structure. that

CP maintained debt So maturity see kind they plays conservative can on always a matter. chart And the we’ve you on chart finally out. of XX, very are XX, profile then

we a if lot very can of between see debt maturities, there. you a the very there or been we as where conservative towers do can out have here debt we next conscious term places over choose the of that matter that spots to open size and issue we Always so that spreading so in hit have month have still we

very So, liquidity. sum, very, are good in think we shape again, in regarding I

ability our to we are But it going We to about go feel as closely. do very through downturn. we watch this we good need everything do pretty to

David Farr

done. they’ve give February basically Thank accomplishing have need talk to long, to and ask you. to morning tremendous to take came and what start team, I issue. his this I in an about Frank action. early They shareholders we for say kudos and us this Frank to

Chairman of knowledgeable going the instructed the time. closely finance committee, very very the the the members and the with worked of of and very who they finance also well in what’s of Frank marketplace are us committee several on

Board Board We yesterday hourBoard also pulled actions. four the Board we other Meeting had and a have last Meeting Committee Meeting. issue week we several that also and and discussed Executive up the our executives, but Meetingwith – we then, And this a had we audit had then

we are communicate their get So Board to trying our to to inputs.

his look at financial very, and the done structure, like this to has this, But job Frank times crucial. the most importantly, finance are team the was this outstanding liquidity, it our an And that. very and ability with company

new CEO remind we’ve been start the had ways running global and Europe the or since the I XXXX. in investors world back customer supply a had sales and I around Americas, people to since looked has call – he as service battles this engineering, back out tick world, the chain, at Asia support it want from back there. a about very Pacific, – comment a when strategy company has chart. look retail go manufacturing, an started I the and we for fighting on the And we sell-side XXXX the Mike Emerson day strategy on we Before

that the marketplaces one we two the ways of out and at areas. serve look We could even global three maybe of retail or

chart thank sure to committee the that rich worked. strategy audit and one. been of onsite, from this here the audit has Audit, runs day want who our strategies an it also Flavin work Lisa that for and the This works and on Head us I of one work which it making enterprise analyzes has

early through China As and we it this March strategy, shutdown. in tested with first the February we’ve gone clearly

And it we’ve tested again.

of hear of for deal this President when some company our will States the when we talk Now fine come we customers retail have United today’s something this, of there make we remember been get now are whole effective but bit issues tune relative strategy that’s with we my this a in out sure this, want when you to issues serving people world. this from out will very that this, because little see perspective, that to different we about and I even I

had production years concentration we’ve started years is of much eight the But and in document China. obviously I a with the of it over more living this team that many ago, moved world. About adjusted you including we that China and some the when diversify out so around know making moves and

I and and Frank thank the the this second. I’ll have to also again, thank in committee a finance the want and work comments want more operations to then But in on globe

here. Mike, by we to when I one OCE Before led to over early it we March, boards turn in throat It tax choke the that wasn't many, the got together many OCE formed

of that thethings standpoint with can one international operations open sales supply markets, stood both we a governments and sure the international our is and everyone from dealing thatMike do facilities We making a involvedand chain. manufacturing had keep up to and

and has he’s Mike And pretty broad whole here knowledge at working deep international Emerson. his been of extremely for life much markets

And this this leaders, at time so, taking the the battle leading Mike has of battle. with care operating same been

we how now. see to Mike, shareholders you the it So, update over of am turning and I right

Michael Train

today. you. David. with A Yes, pleasureto you Thank be here

XXXX that start on Just before leave that. we

able is the important. and be critical and in resilient we Emerson’s responsive really, really do think each I regions of of these nature work being to

February together We’d Meeting go our were obviously was on last it time XX. XX. Investor to recall Let’s chart we

for clear some just bit and suppliers And days restart challenge two the Our quite weeks. a operations was there government mandate as get were rugged after to intra-province a we a took then time were getting logistics. international closed restarted China and on to

Lal provide and that insights This in and our I a significantly past way business improved has as a some know back in moment. month will on come seen stronger we’ve in to Bob the China starting

various as its implemented the by shelter of saw they world, Coronavirus and lockdown make way orders. imposed stay as around operational our Now we governments capability forms again in to the place challenges home,

products provides recognition and the government Italy great impacts, to Russia, effort critical infrastructure essential able and moved South then France and Korea, services East gain and with to designation. China Middle Emerson been along led we’ve which and Americas. the to

a been collective working their thank you give It’s highly likely running team our today’s a suppliers, and call, in listening efforts who when industries customers, with dynamic and these must I it’s into big global environment critical to running, Emerson needed keep for most. governments are

saw March weeks the amazing our and U.S. in we it’s implement and reality the tens around multitude come who employees deal which countries from a watch every last and the of world sudden of mode a multiple these teams home of states to April, through orders have work aspect. in early and own In been of been thousands Emerson with

great and a perspective balance our but to our we running from Not customers. quarter best stayed the up and on to plans end timing of get deliver

sit we major still today, issues. here working some we As are

which and designated up The extended May recently critical to logistics plants shutdown has was worked our India get all to and to and and to down some operate of proven lockdown ability challenging extent. the Xrd running exceptionally overnight we practically where with

but back some we are moving really have solid Things right before now in to several points. go the direction, weeks get

with closely there We their have and government worked appreciate I officials the engagement.

now. times In things improved in Italy, are Europe, some rough we but much witnessed

and through are going still right again, the in community But working things issues way. directionally are some supplier Europe. We sentiment in

this and Homeland of and Security on In our the USA navigate. with exceptions, states a issued the been guidance. need on I interesting the and services has to incredibly the are infrastructure cities critical Department essential few guidance Americas, highlight aligned to

where on am U.S. still Mexico manage to the on significant is I alignment my within concert Mexico, there critical Canada. the time I now with spending am working and guidance virus and in and infrastructure efforts both to get Right

David Hopefully know the for this a few is quarters. important which maybe the play thinking some China over way throughout lot up of coming the investors. its some out back. virus I dealing with of good we how world here detail gives snapshot things have inclining conversation next

to and touch Again we my medicines, for food, tremendous medical else colleagues, communities. real our thanks to keep as everything falling effort importance the energy, electricity, Emerson goods, collaboration, in

David Farr

to I This thank Well, days over want weekend day, week, the day this lot. Mike, were very to out hours in the a seven XX a not talking issue. easy for is you I much you day a and and

You the are understand talking all very to close then make people, to with various importance political and levels hands-in-hands dealing at of with this they sure operation. leaders working with

other how make want also relative done the a out we’ve and that organization with the to and the and any day. to tested going force being the team them they’ve on Lal become of rolled knowing Pelch reports contracted to what’s safety of Coronavirus, anyone every the We if has is around around who isolated. on the I what’s Bob with Steve world call happening task and all work world out employees, positive, get the

a of and into back operation – come teams support buildings this we How out organized process has salary now back this we in our have manufacturing teams now. this back global standpoint back the the work way do how we manufacturing safe working come HR technology. is to everyone with measured a global He out and get to the and a the of and right and on get Steve and do from way. a that

area this having in home realized that level. is and highest that iswhere work we had all this at at us may everybody in the us this really retired had will governments something of have, this. before we’ve that have here, level to like never also those and that Emerson executives relationships help Mike But This come times

the as be to at hiding make there hiding out need fighting this to strongly the can you I into guys at don’t a in be bunkers a front. and giving this are imagine, winning and go I people front runs CEO we be at fighting home, want the that company for leaders you war We comment, war. But know before the me I the believe well. need pretty war out global or the and that pandemic to and leaders to

amazing in has special a want I And colloquially somebody. recognition all that executives, while The daily special and closely are with area other, together – stay this goes the down hall, the once up the working OCE, apart with us It’s other screaming walk to been being us world people the engaged work each comes on issues. the allows from make the to sure who in basis. very a meetings. a that in to at senior But Board daily than been every in work

So, that They hopefully too filing to But again approved committee at the Meeting. on Board eyeball latest the Monday. the a deal accelerated to are of the numbers be issues. have they our close. will numbers Qs eyeball But Board, by and the contact this we Friday audit yesterday the important it’s and we accelerated the review

Also those employees and customers letters constantly am It very and of We’ve employees. the I doing videos. had And is Lal had might to Bob and had Bob today. and felt, believe. sort and videos our we’ve I and all communicated everyone all to we’ve world Mike, Steve We’ve the is communications. notes. around us of important

we’ve So not clearly to and about they are that on. a worried keep going know fighting important got too in It’s are war we they this. what’s because this

from also comment. I make perspective, So, my one to other want

the we in the April ago, in effective base OCE, cut salary a a with which Xst conversation couple made had XX% we level, OCE decision at the took the now the we, at board the Board level see You’ll a in that executive and weeks at slide place. I here

which going see bonus executive levels, of to cutbacks. way programs and high the rest cut down the pretty of took you then level a to senior the to went out all next are We on global involved our X% level, the XX% people

is be that’s here. happening lot going to of There a are furloughs. going You things to

We for twelve months. all salary pushed out increases

that salary in November will won’t because process That So rolling retiring. me like most I’ll get until I in it’s who nothing XXXX. period. will I me know XXXX, a be get likely which of one increase time November people my get not means happen

So be it.

wanted to I XX, a of chart give sense orders. you On the

mind, wondering around XXX people to Emerson we meeting negative last are New a couple Then weeks happened company X% the only the million a March. in Well, the It’s had later March. in in York a engaging half the to impact know and what impact how I We then Now you we talked weeks does the in XXX a of in the raised all quarter. started X.X a real saw February. in is million. keep as world it about second started in

overall, down we Solutions X%. Automation only down is So X%. only are

If he you He quarter. orders ship for well his company five, look a is in line. book Bob’s the at who sales in and is basically and with line pretty was

in month see shows chart we though clearly April, a pretty drop June July. May the now and this is off it’s So what of strong what you and

And and going some now, but that that’s bouncing okay see on right will quarter. see to Bob you in color would we’ll negative will be XX%, are in the you that And I negative Emerson start negative third Lal to give are what well, because tree you be the historically, going say, now orders this, know and facing XX%.

so up. auto that give of but you – an wanted That’s to It held started case. I dropping, understanding not why the

that what’s to on standpoint in dropping still down doing the economy. start We you of quarter the going the from But hence Pete third going outlined and very weak well with are earlier. it’s

and are the last As see around sales accordingly. of OCE here fourth time over we days – weeks, is last in the point also live chart six leaders several world to that we around access held quarter cost the pretty you XX quarter. the world look that in growth, see XX here, underlying at at web the this our reduction. we This fact we together the in is as strong quarter, in third the on We a four a and downturn structuring now the our

be a to No bang going going It’s not up, take to is not. down, up. it’s bang bang This time. quick

Now turning are be numbers, only. it first will if those We then that back start directional and we are negative going the up. look half XXXX at the will you think

The question the How up our play. will parts fast governments some governments fast of is How to of play. customers into open our come certain fast the stimulus be world. in how the comes

now world. we modeling from but in we around see from XXXX, going internal and our coming customers, what day every standpoints the are is We from be think day every coming to endpoints the both more XXXX, XXXX, more the

Lal this, But you growth. look at third at plus minus which about, we points. strong – or prior further ROI looking about quarter, we’ll down Plus talk are XX% X a pretty negative will quarter talk third two XX, minus minus or

of half some we into first next year. move as see the you negative then and growth So,

at the of What first very, operations work, as we and are really we a organization, to are the and what very down XXXX everything. situations – are look ones relative rising right and what’s what ones into which half at a basically are hence, the work cost also need, hunkering XXXX we now and the which evaluating corporate bunkering. the we and challenging on these challenges. done So going right I Which look are ones of in challenging that I pandemic evaluating stock this we and have am the

things about the every hours and back night every with to And spend here then so, and in about golf there we time ten walk my go a in day no going at our start things I to on, day an thinking for the spend I I and very, office basically hour-and-a-half wife as go home important I office. get very since is and office and the all and these me are

now So, and I talk about team a in true happening. what’s lot think as OCE team, this right of Emerson time with

you aggressive at we really cost what’s started and look the that’s us. helped If that actions last year

drop close, give think versus if detail million, the in our business, we you tremendous what saw you’ll and $XXX is did see and sales Bob that. about Bob’s both Lal at our on That’s will little XX%. only and Lal’s As bit more deleverage you the quarter business the second guidance, you

in if I at of now the the second work we quarter calendar from X%. last XXXX. early year because that Lal dropped second on then and look we year, work it’s did of that standpoint, the last half Bob only year And also Versus did million deleveraged fundamental $XXX and the

So, around great flow, Cash a the guys really did world that off. job. paid the

you in half. strong we and are But because dropping. look sheet We now earnings the is on Emerson. are the but cash as are tougher liquidate clearly not are at now, the But cash now in flow analysis second to which level, at first dropping balance we same cash at our the earnings unusual looking a half, flow still for we flow much starting generate a not right

We Hence flow. as cash and the But go us growing as now XXXX, XXXX. second managing the the strong flow as in the year. of be cash the are the the we first because sheet would half toughest very, very the inventory, – in the good the generate liquidate of company half sometime year, what late at have then and we we into volume the inventory right we’ll will we start again dramatically has balance to sheet add dropped in to start happen balance

and are Restructuring on also world salaries, has cutbacks the I in – level. be but we to you about the significantly delays will the our will truly at across corporate helped bonuses cutbacks reduced. salary us taking increases, on talked both

not going zero bonus. to We are

how generate is be we positioning We’ll cash. those margins margins important and We’ve how this as cut protect them right go and maintain targets significantly. setting and and very back cash to through to around this now

And committee and with and that working as cost work now I’ll full are right that’s the something on a we full corporation the Board.

We the cost structure do a restructuring and We period. but layers, looking we to Both do now organization also a how to valuate and we we up have going us for what sure accelerating program stronger are even time cost this we In really this restructuring. win, forward, to to really had set are the major going so spend XXX, through right are underway we it’s need opportunity go to also organization XXX. at make relative to already. using do XXXX, looking businesses structure the

a know dealt, things how a time. have mean, I good but don’t long sense. has been around this exactly we are team We

you years. run well at want the Emerson this this As to into in XXs. these many If these I’ve room XX executives are into the ask I guys and years been how for have been, know, XX room senior

we they know on. – what’s So know going

before see of strong We what seen have what very indications we’ve today. and we

stay we line making aggressive. keeping cost at really are we looking So, in the sure and

the clearly done terminals. things and all markets the and of we’ve is years, gas and Today, XX% now upstream Even Oil end-markets. market. we’ve the we One our continued as and to company. non-oil a oil pipeline you pipelines questionable gas the and diversify – have right know terminals over gas, of is

fluctuation. by the of actually because terminals, investing are are down XX% But basically we this gas Some they oil. storing terminals oil are in driven to typically, are growing. They

the and here both have talk of Lal on you’ll and we will today and about rest But business Our it in bit Bob to clearly this. different few mix little see a minutes. a a continued we’ve diversify

around And diversification Bob very a has broad key some industries.

marketplace. past. in this oil But makes we also bit we gas KOB of it you’re that business the gas. around upstream so going get to hurt and a company very going investments here X the and when Yes, little than different see to strong have it is oil that are had quickly we’ve And in XX% by a

to is not zero. The market going

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Lal Karsanbhai

face. David, we is Yes. rapidly peak global morning. additional market solutions tremendous and to a our particularly acknowledging to close faced automation the on for has QX, Thank by you, This deteriorating we in the margin and as I’d conditions. begin challenges team momentum team executing plan good like now focused

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up sales to be XXXX, now and right projected at XXXX. slightly I to X% be versus For flat see around orders

it turn over to I Sharp. Thank Bob Now will you.

Robert Sharp

then did, February QX differently with out want by Lal out China a ended team coming starting recognizing Like we and going improvement. we despite drove to very Lal. downturn as delayed had into nine profit start talk the coming New March the very about, a we’ll quarter strong out I EBITDA of Thanks, than there. Chinese in Year gross tenths of the what that adjusted – of thought

with line that effort. though was weeks strong certainly X% sales a by that even and last drop in in SG&A about just sales held We again the

additional guidelines, doing make actions our Residential as As following essential still need of produce going and and safe certainly health to we sure measures Commercial at ship thanks many every government site. business, Around what well as the I’d to we that product and groups extend and a want the to that’s day they Solutions XX% special work keep to we’ve taken the employees to And to running. are do local as are well.

here, commercial each showing, I orders with the For other. line our what largely am the in for residential sales go chart and

ship direct book our am use is much not very right there any are year a happening I the really I We reference is and outlook reference, what’s sales a am financial now. going into year business. next to showing to as here because But then this to prices what for

thing the crisis. I probably we think But financial closest the is see

have So bit. kind going flattish last of if you in you will been can a see quarters down

China similar XX%. or quickly. around pretty even up be being ended to ago to then places now a the expected started You’d and into month rest see it very changing of half and down XXXX Europe effect and can two as In QX, down U.S. you X%, closely held The things still other the has carried pretty and changes the through Covid significantly. second U.S.

down Again, XX%. China was

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we this quarter doing factors watch external challenging buckling now of Still dictate that down XXXX So, Covid and and as outlook. are we develop things going again, continued to QX far in as in. lot at for what’s point through around virus out we’ll a the are very challenges

am The Meeting. the chart used the I showing next in I for – chart left Investor is is February on the exact the

plan this peak actions, the about total see XXXX $XXX summary, of salaried actions in only headcount business. about salaried can million XXX on headcount You

is This of GP-oriented cost for a automation driven activities, other so factory a then changes. big price moves, and substantial percentage. by programs costs, A heavily factor us. always and number best factory the certainly a a plan, is number very of That’s

every a can an We plan jobs the significantly last added for workforce. changed restructuring from than we’ve again To then this XXX and additional combination the actions. plan, quarter second the see despite right, and the that open possible That’s this you with fact weeks. move update. On salaried of to pulling basically the beat HX respect

tight very are now that. organizations and the are We right to managing

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original half versus second Our is XX%. our over SG&A down now plan spend

volume we So to decline. working the are adjust

work is to GP factor there to going be as that’s half internal and other a we as second Mike the going disruptions on supplier well. running, our and customer mentioned, lot certainly certainly keep And to to keep work of the and as operations customers profitability our

At The of half again, you turning next chart changed first out bottom, XX year China then, down felt a downs. January QX as in It ups last XX%. we can and were you the China. we down was and about XXXX down - substantially. plus But with of see you we again, percent can see the some had talks that coming and started was very see

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investments now across below there the of provinces. Down is project number a going right on left, the on

we bus these rail air refrigeration. billion lot have where You see and can $X about buildings, lot or Many of a these in to effect total of a effect close and conditioning that. projects,

this as see we proxy. So a

The is thing The have projects. channel we right Everybody going strong cash execution them. of in partners have on now. China on tight is visibility be key to the

our until So is that everybody condition are well. they channel as by wants the to release paid customers orders getting and in same

as we just right and customers Lal came – is mentioned, So, China running as really some had suppliers. of very China, say, I’ll again, the New playing certainly, we’re by to in as out the and and challenges the initial in we way this now out back days, Year, normally but our in as Chinese and large

out. play this hopeful so are is that And going we to

on commercial out other here XX done Chart We things of of supporting one against responders, care from Certainly, charts the medical Emerson’s to organizations, particularly got facilities. Covid-XX. fight the the first we a is standpoint. the help couple residential have the

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far given to care the different XX,XXX countries gloves many away as as and U.S. other around too. facilities nearly We’ve other things of these and

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a from And examples. product standpoint, our number good then of

that our right, business, temperature On device the in Solutions the conditions and see also transmits you keeps silicon tracking that Cargo it a shipment. cellular transmitter

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some as to it and the the preserve a We U.S. Sunday came on And – a across got to gave they devices product to us for Monday shipment. them helped contacted so,

are air a examples things. Chain number left, facilities able test for to business, for of and got testing customer refrigeration In Covid Cold other supply ours and other the a We the pop-up Thermo number Fisher, of use environment important the bottom an medical we their of quickly. some some stations, conditioning of those of

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understand to why society got we that a it a So, work to again, are is because really it that lot importance business we important providing – customers. to help to sure to we make employees again, it’s need of products for every do helps the something we have of our understanding plays as and we coming things day, our central

turn it over I’ll Lal. to

Lal Karsanbhai

Thanks, recently. Bob. I from major to in already pharmaceutical response. Solutions the examples significant are development, firm want share the few Starting Covid-XX a Automation well efforts I’ve announced making drug to mentioned examples expansion a teams crisis support perspective, an our bio of a as specific and four

the of This we response positive the mention a of in is an drugs in are drug response or as NDA. of Covid-XX treatment. in firm their I name the can’t to one

However will ship this million and and book is $XX be fiscal north of this contract year.

equipment. over being of PP&E. Coriolis testing are realm, precise to our reagents will filling move in the In the for medical used meters This testing

past for awarded five the be been used ultrasonic the to welders weeks manufacturing We orders have from in over masks. Honeywell medical of

received And be ventilator machines lastly, in to patient in therapy valves, and applications. have manifolds regulator we nearly $XX oxygen solutions therapy, orders used for for of sanitary million

Thank that very that’s response the the So occurring set offerings world. support broad you. of around

David Farr

and side our made as We Thank calls, in much, listen the everybody thanks in you. Thank very and investors. we decision also the you, to the the investors again. Lal analysts sell-side buy

you communication. So this bit important out. we work in day into we expect make time. felt and our that think understand of our lot and Don’t are we that investors what goes I detail the all needed to normal go A I living this. above beyond in day just of it’s want sure. in But little type

divided And world OCE, me Mike the and as conquered want the last and the a taskforce XX around Lal have worked both people both and up a phase-to-phase takes and XX basis. day-to-day, to in XX, on also and the Frank It and entire put formed communicated. thank this we’ve room, and everybody days to that again, the effort this Bob for people team I and

X am a for thank video also that afternoon. employees everyone I recognized everybody. make for again website videos, is And to want and O’clock the our that. one sure to for one this doing I then two

People well. XXXX, XXXX, statement would one that. we I understand effort and went am we repositioning dividend dividend. special not would I people also I strong a through on that history. emphasis made a I this. CEO. cut break know make not our still to me XXXX, to quite very sure want make In want the major our We

will as will strongly dividend I tried history. and dividend as and our am am charge am not our in not I quite people me. kill dead maintain we I to though have long still payments here, in be cut

flexibility and capability financial going forward. to the do that have We

and we We also opportunities is want are acquisition. to will we that to are and and looking is many opportunities to doing emerging work some pickup that comment is flexibility now right what like want D&C things clearly clearly financially start ago. We one sure, I work Frank of the strong, see we make the years make that everyone gives did set on us the unique doing

we’ll thank But world everybody And Emerson with open line and Q&A. the am thank take around going I start. I has situation listened here. that, that I to want everybody to for the to in And want and room the us to

St. the So I and Mike from live the guess, back live, is – night wouldn’t a do off Louis announcer. Halloran. coming to you question live is this the Saturday Since first from

open can the ask so let's lines, question. So the Mike



comes go Baird. ahead. from Mike from question Please Halloran First

Mike Halloran

Hey. and morning everyone Good thanks.

David Farr

Good to Thank morning you, you. Mike.

Mike Halloran

at looking through here. are KOB been few X And amount Obviously, the on certainly the question, days. first you and context appreciate of a oil you've that’s put how just the Lal slide historical that of cycle these gas and But market? some how forward by the together move putting back how the into you dollars do versus and you gas start as in quickly think capital concerns customers now and takes and responding about more liquid your OpEx you dollars can think puts portfolio. structural So,

David Farr


ran So, back quite zero. Michael process to give to XXXX crisis the financial XXXX, and we oil had in you long of some below went of time. the when context, I’ve $XX, price business the been around Asia almost went a I

think you exactly I are right.

see to let – things. going of I’ll Lal are answer couple We

We will change. see a structural

acceleration from to we’ll time liquid I over an gas. see think

power generate electricity. you I industry and energy change in be in think the what’s going structural going are to see used a to power industry, a the topic

I they’ll time with this situation. take their think

are I still table. the projects some think on our gas of

the let I’ll in Mike, on Golden Lal try to talk are right one now. about revenue. the to East production, hunker Middle right the first the going But the is the cash. going and they protect going plus Pass are liquid and thing down They current now, maintain

little X of of a bit spend going and KOB So they dollars. are to dollars X type therefore KOB have

I think my Covid I and XXXX appreciate in can’t am By this the on transitioned out I virus. and been period. assuming historical knowledge go way, the more the that. of XXXX, there over XXXX Based this, time

very Brewer be you, Brewer me Milwaukee fan. You fan, I’d since especially upset a you're get with Mike, sick.

anything want Lal, to So that? add you to

Lal Karsanbhai

kinds cutting is announcements the in production note versus recent the What United XX% of important David. oil Approximately to we’ve XX in here concentrated XXXX players It in Thanks, seen space. generate Yes. CapEx it’s America those by North heavily that majors of down States. XX% ranges. a the

is XX% done by of other The thousands players.

I be disciplined. me, will – think will that be very XX XX players excuse the players,

many in will it. of thousands, the this, through as go go we trouble we through them be As

refining economic I So I oil about upstream segments, and cycles. typically, the when two think different downstream gas, they the the believe have and

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idling units. the Some of

trying some to do how to figure tough this And environment. intervals manage out maintenance are and adjust turnaround

difference. weighted see For some significantly to us, refining upstream OpEx. where to more been and is CapEx has historically more we That’s one weighted aspect

other is normalizes. believe aspect we little that will reining quicker demand as segment that The the rebound a

That’s we more it be But see we that However, right because production will significantly the two. more upstream will be challenging cycle more how impacted, think structurally here. believe structurally production now this I the – and that oil have. oil of is I challenging in element oversupply oil

David Farr

structural Mike, things are going some are exactly because right. changes. we is One of doing, the you be to There

We and putting we are too investments we starting going. evaluating we are organization are the how are – and

As are you well we because projects there the people, any but going major our very working quickly know, not we for while liquids side. a can in clearly is be adjust to

going and be to the our business. we will the are side more obviously support aftermarket people in There gas and redirect

in bring same adjusting the Jamie, and have our in up years. by in of a three all area very two for be we out Roel fluid Pacific, world and the on there Vidya East, people. Asia think because of Europe, are live that So, the leaders I Middle you or going lot adjusting it’s obviously going to issues

Mike Halloran

continues the right. forward. Saudi’s awards jobs project point said we LNG Golden move offshore there. continue production your around gas, to move continues Pass you to to the – are forward David, And gas Marjan That’s and is to book absolutely

long-term as dynamic continue a looking they're want they to to think I So fund. opportunity still gas

David Farr

question. more one Mike

please. Sorry

Mike Halloran


seem life as to certainly AS on the medical for time? Hybrid And So piece doing very what that that's science we segment back are actually a forward, particularly that discrete, in regionalization do and more and these on that applications think seeing we about of good come we basically that segue. how well Then tale some you changes some better as the structural look step means over side.

stop portfolio? you the look piece move you lot of the move have X can breadth think KOB a What and you and and quickly you supporting But How it you about depth does organically? quickly inorganically how obviously there. don’t can still like, what versus

David Farr

answer we I’ll two. first the – think I serving investments investments. But and towards the that answer internal discrete our we and are are marketplace. – things changing then really obviously of those one looking obviously more his the team at that Lal are Lal our are Yes, we

to marketplace The liquid I back. will not the because side, is other come the gas think investments continue

gas is very, liquid be it a be and will will very The saying. changed it strong aftermarket then you but as are

to this both the of levels space are development. you the in at continue to we acquisition that space, higher are the discrete areas internal the and space standpoint around also going an from see invest So that hybrid

lot oil We the of systems move within the have space, within that space projects now outside a discrete marketplace. right in underway clearly the working that

some looking potentially that we acquisitions, also lines. are based more little software are acquisition can shake We along some out those

be other our our we’ve as and other So, be will you and think every will this, time right structured Mike, obviously, liquid higher. seen I business less are in like business

So drop. that will percentage continue to

we to So oil business if shipped you think and about that side, liquid have going about the gas the revenues away you we area. from going customers that think these continue important support are the and to we walk today, not away it’s to the and in from

you on portfolio other of mixing around and The oil technologies. some innovation and But areas will the customers. industry the important are very right, reallocate we new from are continue away These dependent gas. that our is our the

to anything else So want Lal? add to you

Lal Karsanbhai

our significant business the in continue drive and that. technology. developing discrete investments things, ASCO that Europe organically in portfolio two We to with our longer internal efforts a around both is there Just to both inorganically space, acquisitions around significantly and made in And core David. runway

power areas, other a segment. diversification are am segment, focused the the I in David as touched The in Mike, science, we particularly Hybrid that from on life meaning on two particularly perspective

other our control to beyond opportunities market our areas. traditional expand are there system think power I generation into

David Farr

you And on which space are for beverage right – food also hybrid area. up Mike, of think and they I Minneapolis, working that to in will is sensors important life add the sciences, on a like now lot

the next come So, on. question,


Bank. Next Please from question ahead. DeBlase comes Nicole from Deutsche go

Nicole DeBlase

Yes. Good morning Thanks. Dave.

David Farr

Good Nicole. morning,

Nicole DeBlase

are decremental restructuring worst So, I just you is wanted to guys embedding I would ask is year. that third stepping the about margins getting up. quarter in the the suspect the second in fact about It half of like looks payback despite

could you payback? for to if restructuring speak the as margins expectation So as well decremental

David Farr


but detrimental is and I it sales the margin the our in are first undergone not now, so we same the the obviously Nicole, the we much quarter issue think third be quarter. better in in right the a why significant, then in level had talking quarter lot was the is drop-off second about big

half incremental So, right we the we’ve done basic the have the at overwhelming acceleration restructuring to first of this on of sales restructuring are now, and the decline point time. and in the going our

the months pipe. looking are We XX at still left on total

ones term looking international We at are to we are also some longer markets. relative that our doing

the of billion set is third better particular $X for quarter quarter sort a because $XXX can million. drop we sales, in see off XXXX – those in we I when think really So third is the and ourselves sales, something drop-off you XXXX. in up But the

just overwhelmed point It’s we’ve everything this at of time. done

very sales are a been just little but May So still hard payback at I us a see that. we But April, we’ve cautious and that, in bit good overwhelming on has hit standpoint. more us looking that on XX drop-off don’t June. and months from in focused that so of Very

Nicole DeBlase

big the been margin That as in there similar And both of second on just fair. difference the piggybacking Okay, the on phased half question, expectation then, fact about restructuring that any has by thinking decremental AS? were most to or sense. focused just in segment makes that is the spend

David Farr

You second What's are to right don't be you why answer XX. to Bob, first? going half decremental your close now?

Robert Sharp

down XX% going went of are to sales to teens. Yes, magnitude order we and the around deleverage that’s where

difference activities But and sales a in the it’s So last reduction very sales platforms. a even many in the of magnitude year, with two as certainly that second strong decline, Dave versus between plants. the SG&A mentioned bit the half of

the very be very disruptive again now the is The to deleverage to as of volume, right going which is Covid-XX, challenging. as well plants

David Farr

productivity. a From

sales are I whole year, trying think target add, some I even thing to down Bob, to the you with still looking other want EBITDA are improvement we the at. margin for the

the case. that’s So still

Robert Sharp

it’s going are to to there hurt is to this we up. difficult Yes, But total last to volume in we point. decline, for year. EBITDA year be going but to at looking be at this very are going Adjusted for versus be the point hold strong be whole

David Farr

now, and issue which the two impact plant, within some a very, big And frustrating. the issue answer productivity as Nicole, day, I’ll our let for to in shutdown plants very get important. that the will overcome then safety And clean. very, hard It’s operate to and days to, facilities is is Lal have very we right big

shut You have have a you to your situation back up. often then down, got people you

back. your think So it’s another is hand situation tied overall that behind well. But with that all pretty I doing

So, Lal, anything you want to add?

Robert Sharp

Yes. Thanks Nicole. Hi, David.

March which our impact is us. That’s leverage quarter third accelerates third most One being the by America business’ factors. predominantly North challenging in quarter within the the two rates QX quarter the most is to The ship for significant range from driven in impact. clearly and into XX% book

For our control the in cycle short being businesses final impacted. in X instrumentation KOB and

into normalized. third Those than are a get the we But a and fall think more businesses the that Things have. us do deleverage QX basis, we of significant a cycle for on sequentially back which the we from do some hit. pure margin EBIT into higher is longer XXXX better perspective businesses

Nicole DeBlase

Thanks guys. it. Got

David Farr

Thank See you very much Nicole. soon. you


from Andrew go of from comes ahead. Please question next Bank Obin America. The

Andrew Obin

Good morning. Yes.

David Farr

morning. Good or it guess, Andrew. I is afternoon morning, good

Andrew Obin


David Farr

Don’t this for get I ahead. morning use just Go either. used stuff.

Andrew Obin

Just some the questions.

you that great comparison the crisis. what financial at GDP forecasts the even But we bottoms with the I to the and the XXXX, saw better. than that are understand XXXX in for is Looking XXXX up going back guys seems making company it be weaker

Yes, embedded perspective your assumptions the there revenue that in are performance or other the well? by seems changes driven to better crisis. than a as macro just from there all be financial in portfolio Is

David Farr

The number one hot, financial the went issue, into we wanting Andrew, crisis strong. is

We are very strong.

double-digits. We are growing

the So curve – dropped we that hit of and hit. was are in biggest a we growing then hard we and so got that

year. structured flat you well a for basically year we a this As were know

a had this year a flat couple what way last – was he is to bottom, was up slightly originally. it thought bit Lal down. We it’s

strongly issue thing then differently that the But business are out. went we growing are second one, going the the are mix we when and from fell last is cycle. into a the since cycle the bottom we is to differently and So very of we structured big the

year. the collapse The biggest difference, bottom had it. That’s started last This already for Andrew. one we were ready

Andrew Obin

a just second And question.

just talk a is what specifically or Are if couple aggressive you In money, of what but would doing you are are you just that you it that or of do and you spending move it. think ago didn’t detail in to now could XXXX restructuring, you talking you in have to couldn’t on about logistically more you you terms of footprint more is can just to months there if that being are us share as you. publicly. opportunities more Thank fast terms

David Farr


are we into the of that XXXX. do trying we more is facility – are we the programs, sort One programs So, avenues here. had to fixed accelerate what two there is programs built cost the

We second accelerate are into trying the to of those XXXX. half

come those running cost can have and back, get sooner because facilities want structure. to spike the new those we up done So at lower does when we

right now. necessarily are platforms, what looking are can the and overall get we how and structural we the at perspective. more a need in the both as out them thing as layers them and how corporate more being company we consolidations do a take done the the and learn are of we Secondly, bit from two we aggressive run third which don’t we we what little and that on how we of company these world is, I earlier, fast layers said the different some And to

So are if And – we at are those not do from that and everything carefully sort need doing are perspective. we we to are and it. we it, don’t things of very going just looking that’s

as So of different go going that’s a on this view pandemic lot what’s that war. through we

add? I think, Lal you to want

Lal Karsanbhai

facility us on best the rationalization, cost sites. on the is Obviously, David. building Thanks, dependent it Yes.

that accelerating of this as best execute time So that’s those we building plants plans. They underway, can. can are obviously some we

purely further decisions businesses. So identified the and identifying to lot around of don’t related David’s across Andrew point, incrementally do a then and on opportunities what headcount do what we we’ve has been delayering volume

categories. two those – the are Those

payback leaning Andrew and as we in it execute second very here the As quick the half about what hard as to we talked on XXXX restructuring. New York, we that’s quicker and accelerate on restructuring this

David Farr

do to Bob, want add? you

Robert Sharp

but is and organization everybody have thing the cuts. are a say I’d Certainly, freezes frankly, we SG&A the the I just practically with non-existence. do volume. a our wage same else at things discretionary, as think volume-related level, going just peak easy to of plan Well, lot And into like that, it’s doing did most isn’t of is not necessarily part

when year But get making at of have least we work be now and payback some we at some on least hope or right able say we ones. So I positions it. that for the and it’s are tough to stuff a to hope just with wouldn’t two very without we’ll so a this dramatic in back last peak choices the to it’s volume of really of part we do dealing get certainly – cycle plan. come the It’s sales part

and the not lot deal down Even a we Does second salary, and pretty But whole side, volume operational half all can going. with of this more affect do to manufacturing again, the costs, here rents at that the not right over are returning answers? year. the is a dramatic quickly. trying we slide this plants that’s There that in will now

Andrew Obin


Just low-cost a in about? environment question, have what supply of fracturing global you given essentially talked your chains of are facilities that this this definition people

David Farr

at answer use no. We the We evaluation look logistics. best relative cost to always and is the word

about strategy, think you chain. If about we think logistics, supply regional our

be site a that will we use some five we and changes people as rebalancing or seven rebalancing think fundamentally that I years at look matrix did years there about ago. or six

we that take as will forward look a here. at go We

the right has that XXXX. best changed, we of the we cost again perspective, are our not constant tweak We’ll of basis. a from tweak matrix But – it end at now But definition on no.

Andrew Obin

appreciate Really lot. it. Thanks a


from question Julian Please Next comes Mitchell go Barclays. ahead, from

Julian Mitchell

morning. two morning, a and And got within Slide which end-markets Maybe just at is the Hi, just for scenario of year and big that fiscal segments looking then XX, that a David, back out. us QX a first do will thanks sort the you question, and in you recovery? details. a line think understand good giving towards main flattish dip Maybe staggering there of lead help each

CapEx definitely might maybe across be that the of platforms out. on, trajectory? is laggard ones maybe lag a the other which But upstream called And Lal of any had two slope that color understand end-market

David Farr


the these businesses be comment both I’ll side specific of – business comment and guys liquid I the slow. let be clearly to will I’ll you And different. is Lal’s think and on what very if going

I are think you year some bringing the States. facilities in first some next half see the in going United companies of starting to back look at

be that some space. around side around that of chemical and spending they’ll medical, So materials go they’ll spending into the the pharmaceutical, be and

will only I think – early be probably see new side on see the you laggard are going business. we on in new the the to the liquid contract –

type would probably would that the lag gas. I of this Historically, with be shock. about cautious also

gas slow I the through are making XX% quickly bit that. will start stuff go see that capital we as at, the will business back own the rest a recovering look and probably think their they of think they pretty bouncing how little they be I the But and rebalance investments back. of matrix where

is at the these But continue to spending. guys I those think the are beverage, at it I look as will I and food chemical, power the If right now. look spend – industry, all their reevaluating

are – think else side they going to the come to those gas that? that XX% back. I Anything total you business. about which want are the So, Liquids of would to about is worry and add

Lal Karsanbhai

an lot a XX% in or that is Julian, pharmaceutical plants KOB to perspective coal Obviously powered a station. is Essentially, that’s it plant, business, David, required Be fired refinery running. from day-to-day keep a quickly. orders. X define automation what what XX% very just small the the of

So, we are focused that it’s on. that

turnaround on will this that already will currently return the as be should David accelerate broad of in we background of – sites. be activity people that. predominantly and allow into across see industries more But very as comes It that production, process we’ll shutdown are we and SPOs scale back with hear. but the not will agree downstream And it That’s scheduling that fall the season. be I quickly power. benefit lag. we as see That

David Farr

going lot every of around type to to they areas House, as Asia medical, are as the the the and that of look the am White that they going also need, you the U.S. sure look they the I look the the governments see into in world do a pharmaceutical, to chemicals, I the at how world, whatever went around But – are all Europe guarantee going are but at. – at not just the healthcare, you

Okay, company a investments period. and where the do drive back Emerson a those to Bob in make what’s XXXX early you see coming as need time we that’s anything you want, help like change back?

Robert Sharp

we us, very being the will, the channel key of on was if as far a anticipate about they as China activity, very inventory stimulating also Construction, leading as for a and end Yes, snaps us. also work terms of certainly just cautious but especially real getting you economy. coming on quickly it that’s out certainly both key obviously in carrying

right really could as were industry that critical United or quickly Even as are on is back depending And infrastructure the the all – limiting chain Cold the can a hiatus. sell-through come largely well. the on in picture States out as supermarkets that frozen very far restaurant realizing now, in come which again sites.

certainly, customer to very freezing any activity uncertainty with right as about going doing the both are right now. careful happen. then well companies they individuals now So what’s project And general if as again, about

be key for is the be a… with us And the certainly as going again And summer might here the again always factor. to the U.S. as in and that’s going a air more heat to it quite development important and be of a cycle than then, a we to out coming China, that market spring replacement conditioning watch develops

David Farr

but about they about replacement, to our talked Yes, XX% is that certainly already business replacement of on anyway.

matters the will factor So – some quite too, require have the repair their repair margins housing new replacement whether housing, good. are and people side, systems, of on do the certainly compressors that although

else? it you. Thank certainly into is there if anything So, gets mixed repairs. down some component Julian, out

Julian Mitchell

Just medium-term. know a the you sort out quick always I into of further looked that one. I mean,

this XXXX say, So, this slump incremental or about whenever in different we would XXXX versus, come we and out come margins the expect maybe anything experience of you your XXXX? whenever of downturn, out

David Farr

our are margin plans. peak Well, of I mean, the standpoint – off backing from not we

of structural come evaluating businesses should company term better we the the touch between we fundamental and be the are points as obviously all and the two to because changes incremental out margins So, the the entity. are in we taking near corporate

of or those thing you So out be not next and good better is come I lower would this does cost back But margins us. to the of out the for say, CEO be for structural this key is thing could and is in. to as a will as try he we cost she will that incremental that, I structural sure come we for be make allow say would that

Julian Mitchell

Thank Great. you.

David Farr

you, Thank Julian.



Next from from Citigroup. question Andy Please ahead. Kaplowitz go comes

Andy Kaplowitz

thanks good here. all color Hey, the for morning Dave guys.

David Farr

you are morning, you bunkered? How my doing some these hiding Good Andrew. Are Where hiding place? you days? friend? are in you Are

Andy Kaplowitz

Very in Hiding Jersey. place Hiding to in exciting Jersey. hide. But…

David Farr

Very good place.

Andy Kaplowitz

way, XX% XX% QX context the in down the By ask AS in let you obviously just of Exactly. me in China, about and in CNRS.

rest for of where much roadmap how the are your about the across impacts use thinking Covid-related So did company a China guidance? you you

to of Because that China’s China expected because or China? shape And Is you be you the the seem the second there us to half. than in don’t can guiding that any mostly impact are recovery, the the for kind of give of there of that then in hanging geographies your rest take are on better world recovery? other

lot L? I of you gave color. us know think Do it’s What U, you you think Dave? ultimately do there,

David Farr

a as more medical that you the I it for to China investing approach, it of the businesses, buy price area, flattened to and it going it recovery be areas, going different be mean quickly reason more the nationalistic sharper power I China energy that oil. a other for from the building fact them will it $XX a be help little to a is farms And be it’s say for in could area, of is shape. given a tank allows country, things is, the Bob V a just while, bit think be

I for a to is faster. mean, China, going stack business while much

they economy. world has Now, the the Lal’s think rest this a will talk business way. is from think agenda rest just I different this how don’t bit snap I control little don’t first. the of China of I’ll the to the – world standpoint

open of I have up. how economies come will a think they the standpoint slower from the other back

have that South the the measured in our at inside happening Middle look Middle and to just Europe. middle same we We thing the in States. are Asia, going the also opening East, Asia see United East of I in and

mapped is markets the outside are different Andrew what a slower within a we of out China. here, – I So, recovery

see Latin I that America. also I look at

not going political leadership Latin think that to the the struggle and America good. financial is is also on wherewithal I

historically, it’s pretty business, snapping Not money. back is in of he to want don’t in the allocated going type to put still Lal’s a is or On I to But they China money Asia. strongly see markets. Bob’s being Bob’s quite business, don’t where and more strong other the clearly, that Asia, – be as coming And we recovery. because recovery

flattened we more slow So of see recovery. a

historically he by see a as He Now the to which financial could snapped, are is liquidating that and back third also actually we historically, historically channel one has the he stack. goes chart Bob fourth that the maybe may because the thing has shows get channel distribution accelerate he and of then it things quarter can some he see snap. year, stronger wherewithal that has a of next strengthening or

any I it’s in this other behaving not And see China, the in like at we’ve because other so, – factored China markets just don’t in than Andrew. snaps time point

Andy Kaplowitz

on operational, getting countries about proactive people which of and definitely getting businesses, you the not necessarily going and both back in of getting in other China with case to programs. injecting things a is stimulus very also side been getting back the work see then is terms plants

effort, I organized think and the economy lot just countries you get will, are if to to you now? then the a So, running are more in collective back see right seeing of number going we

David Farr

to anything? Bob, add do you want

Robert Sharp

Yes, just very production that – our than Americas been are for area than Europe the China being example, the as has marketplace. is and well. more quickly. of long for resilient a has doesn’t very elements depressed production Obviously, the little seeing Europe we have time other left

be on nuances So will two those that.

Andy Kaplowitz

Thanks. guys. you taking talk. how might impact there and of been multi-national reassuring has companies. And lot a That’s that helpful mean, mention then, about Dave, I

strong about talk did local-for-local strategy. your You

maybe and more might there impacted, chain been how talk has about color your benefit you little So how us? supply

in do chain. China a emphasis about have industrial see how fact, on we much supply we next player concern In And years? have conversely, over of nationalism do if localization more big for do the of call more then you couple being

David Farr

totally in has calling in that now. ago. higher been five on Well, little nationalism, some the what in industry, based on see six about both obviously it medical been food bit back beverage, seeing new, has we time. the believe just It chemical hybrid, for customer obviously it’s going a escalated But industry. years we or what nothing are base on our the the and I started

Rhode in plant a are We the that and now working a these production that we Honeywell to we is right – Arizona, some plant on a be the to seeing also after in push of first some United going mask where stuff. they fact supply make Island, chains are the a States. seeing The are that our in vaccine mask and fact rebalance opening

the I has be protect see changed are vaccine to you and But and to I think the industry the that. to legislation industry. going pharmaceutical think medical

think will the like global to companies that that the we Emerson serve going industries, side of I have that and be work the we clearly, issue. negative to multinationals are

the But it’s not just U.S. with going

I the be Andrew. way, think will same Western Europe

and to some going French, are stuff depend are Spanish, need or the see on, you they be redo look it the the say we German, they to American they here. could Belgians, Asians it happened to and it the what Italians, to the be going are what think Europe, an I okay, at Western going be the

industrial So years global benefit next this I I many good follow globally you to and I guys is from will this. all companies know think think solid you about, of the over think the going happen two or three which

massive are struggle. think going are through I the guys going to – are companies the still changes

in is the side. There plus you have be I point minuses, our we’ll as a I going end to out have on a and think negatives to do pluses accordingly. put manage those I and couple

Andy Kaplowitz

Thanks, well. Dave. Stay

David Farr

You to too. in All Jersey. New the Especially best you, Andrew.

St. better Louis. in like I hand my think I

Andy Kaplowitz

there. you hear I

David Farr




from Pokrzywinski ahead. go Josh from Stanley. comes call Morgan Please Next

David Farr

damn Good try. That’s try. close. Good Good try.

guy? name You want for to pronounce your this last

Josh Pokrzywinski

Dave. twelve Yes, I letters hope – of it was, eight out


David Farr

Eight got out that’s this I good. of morning. award Oh, Josh, did the loved you pretty it. ten. humor

Okay, Josh.

Josh Pokrzywinski

talked the chain, chain. locally. own this your sourcing supply it. too are We in and manufacture about supply you gotten a is we Anything looking long appreciate at own I much gosh, saying, your that lot

many We components the are few yourself purchaser? as sub-assembly, borders – get much having few looking too at to cross and of other more to kind a or customers too of less your kind

David Farr

answer the is Yes, yes.

February, India, towards we looking as risk very And strategy we now Mexico, at enterprise is so, Flavin and U.S. wave. obviously the what Lisa impact right evaluated driven the look good audit a the looked China businesses first And was through are what's audit and at January through audit have wave end the through we now side under happening early committee by of the what as and our we committee. China we right is the we going and hit at the the obviously, are Malaysia,

go audit network like, the will at are Do to stabilize. this have I this I standpoint. year. longer, We like more the most process a look like through asked it our do we probably money? going But things crisis did from to wait little yesterday committee to a things August be want they supply will financial how

up and down. as ramped Did going to keep we up we for Which we have them? this to ones help are

as that be Josh, going not to think I So now, we changes. from, we at right are fundamental getting look

closing time the three the strategies first know, closing suppliers. countries we But one or down. issue are our two have we big for As we multiple just have not down, countries seeing you

we standpoint say have and at an to what this and have to from economic so, are enterprise do this risk have standpoint is is we to do And going model four. looking okay, a evaluate

interested And move will year and a those what this and into so, know calendar with then basis be stabilizing a we as guarantee calendar in right on year on more we will I are But we we that happens am now leave there Nothing XXXX and do I recovering. year do. changes as basis. things

think earlier able too it’s know we XXXX in go at. it here been little I early will We’ve I and overcome forward in and So, make we in as do late to time the some XXXX. mean changes

Josh Pokrzywinski

what imagine some of about I who which your or kind as that. zero longer it. folks maybe And appreciate want the from do, speed morning to of I’d then, of just go up make think kind is just to likely, calibrate kind Got budget and show erase cycle the and the don’t I doesn’t hard of that happened decisions one forward. they of customers

enough you from had At what clarity everything get i.e. think they’ve point and to back customers, do you your get to time scrub you.

So in not they what I are that want do? would quite – where moment to you yet imagine

David Farr

it’s Frank a lot you in no, And a higher reason financial lot – for than liquidity but one is faster. covered percent crisis. to is this I mean, is the and one what lot faster the Josh, is back the it reason goes it this XXX% a a think.

in really early thing very on they jump this to So, had on February and March.

don’t yes. changes? represent that think be guys is Now The will that – fundamental have there as missed made well some think changes. But don’t answer you if I that these you some you

room both at are the spread living customers’ The input. and we out downstairs it both get is every together Bob OCE At OCE, the of in a day. talking X We from us, board and were Lal and daily. O’clock big are we

much moving are guys these faster. So

standpoint, action this will take So, at financial from finalized quickly market base flow customer to both financial from get I this our are at also we had a they what quarter. standpoint. be then looking reporting internally, pieces generation a and if as finished cash out But they from maybe the last very very, look

Bob, being you a would And much and finalize one want make bit we'll than on I little probably think. that? anything us allowed it. this down is So to as quarter, further add together faster. pace these adjustments But you faster are say to some this guys that pipe

Robert Sharp

that’s knows a that No I lot what right. nobody to think is expect. And really of because

Whether large customer bad. freeze small So it’s freezing or in everybody that customer, quickly. event very they is a a

David Farr

happened It’s underestimate So, quickly. pretty don’t think I this.

Josh Pokrzywinski

the appreciate Stay safe. it. leave I’ll I it there. Got color.

David Farr

good. Okay. It’s



Next question Please ahead. comes from go Tusa from JPMorgan. Steve

David Farr

name was That Tusa. Steve easier pronounce. Thanks, Scott. to

Steve Tusa

myself out dinner. was slide.. On just I fixing Sorry. in

David Farr

breakfast? yourself You did you or dinner? Right, lunch are you What mean, mean? at facing

Steve Tusa

I is just this comprehensive conference been … are call here. saying Well, It’s am a pretty you having a while

David Farr

have to you Oh, to go bathroom? Oh the okay.

god, Oh, Tusa. complaining. are You

Steve Tusa

I to the will from about Slide ask take leave sequential Pete June XX, that offline, I downtick July going that. ask that about I’ll but was to on one.

You have a modest sequential downtick there.

detail. the of guidance. all so, guys given anyway companies we really you Okay, Most withdrawing are a Obviously, have lot appreciate here. detail

been have of how I visibility for And half? do $XX a booked simple save? How you queued said the in first half. you cost the up question. the think saves much cost million you much of this XXXX? then second How for Just do on much very of have kind have

David Farr

here. the We numbers do have

what then number this week, – the is what Let’s first work We quarter-by-quarter is Board the and showed we in last basically it. second Steve, next them year. and also half, work the half showed we

Lal, point for do to in have time? fall queued So savings this into this you what at

Lal Karsanbhai

What plan, $XX to million. $XXX the savings first reset, goes million We of the in activities half kind from the and into we restructuring just of in other spent the half. recognized first

David Farr


Lal Karsanbhai


of $XXX in be will savings million. excuse year restructuring We and $XXX half in half combined a the the – million. me, second Second

David Farr

first the has make… – the running year? tell then something? to So, what a half you Clearly, next the did Board XXX incremental you would going out into are of what And be about

Lal Karsanbhai

runrate obviously do off from year. this what There because we the plans changed not doing February. are impacts, incrementally will I be

David Farr

the allows quarter second next go half and The big them the in savings first then will year. into

Steve Tusa

Thanks. Okay.

you be kind still of you variance there into so pull will year-over-year or all a this pretty So of into into XXXX? year some that – heading did carryover have decent

David Farr

on What board, you the XX saw XX. and

Lal Karsanbhai

well, – spend not you spend, did Right, but million. expected I I go into with will $XX is XXXX in to be XXXX our share

David Farr

million. $XX

Lal Karsanbhai

not that have changed number. I

David Farr

million. $XX

have – savings some dollar-to-dollar longer carry to will So, because you’ll they have some to But over. although be going the and have we’d they still stuff will are million in term going $XX on therefore some be still some that’s accelerate it ones.

year. million another in So, we’ll the $XX next probably year have whole

Lal Karsanbhai

a perspective, $XX give you there XXXX. to in David, was Just million

David Farr


Lal Karsanbhai

$XXX There in XXXX. will be million

David Farr


Lal Karsanbhai

another $XX in then million And XXXX.

David Farr

dollar in Yes. We’ll that. quickly pretty get dollar for savings

Robert Sharp

will we And residential, this are benefit capture for we commercial for the about restructuring year, year. XX% the savings of doing this programs

beyond had So will and course set well. actions lay and then we for as that in we got carry hold XXXX over of another about into XX% that XXXX, to of

Steve Tusa


Robert Sharp

things half have once coming think we’ll like be offset the of in we cut, the still will institute that. of will I into half year. the because year Steve, savings have first will next salary first But to the we

come to will numbers back. those have That’s half. million doing for So the around $X.X second

$X.X So per million quarter.

year The numbers all salary next will will planning out. that too, us hit back roll because for

things doing will second to how number dramatically curve returns. are of of that furloughing, we if there the the sales again in on be half is So, this depending return. to some you thing Certainly, a

David Farr

prior Yes, at now. right and inefficient plants the like I of flow on cost pace what’s now nicely. much is as the flowing right this decremental thing real But with is finish will going bridge through the in and look key savings the year. and pretty cost savings we I the are then

Steve Tusa

some that. be going to And that. accelerate why mind in you kind I million said into pushed you background is the higher a there those? more just in mean than the seems was embedded threw I kind number I do of thought had $XX you substantially little do and out of of numbers these feel, earlier a or year there XXXX

David Farr

number last for a Yes, we XX year. had

are we’ve done we the you that I think and numbers higher more very we and bigger happened lot But we are are think that what’s obviously now, more I numbers shared is to with because because have numbers savings Steve, short-term they are similar to in accelerate. this. a February trying now they

are going So, are the up at the But same up. the costs going time. savings

we now is that right probably are we more living over And action in cost have we the this We’ll at out because are figure down. to to carry we right point. how now. are dark a that’s mean, drive have where our I doing period more issue

things I’ve it’s tie other back I than to numbers about always earlier. But are said talked to phone. So over the the bigger hard

Steve Tusa

I just quarter, of gave sequencing, the Right. fourth quarter and quarterly Yes, of because to you And the nail third then one just quick down, wanted one. kind kind fourth the and obviously cost-cutting of revenue mechanics kind sequentially that flowing EPS quarter basis. stabilization step-up and this you essentially through is kind the basically a Is of an on that of the then all get.

the in kind in down, revenue that see hard is of of going fourth it really don’t second quarter. see you You the because how quarter, but

to to fourth is or in the kind it of Just moving to reconcile $X.XX trying this $X.XX $X.XX whatever the quarter?

David Farr

XXX% Steve. correct,

extremely team something about XXth taking, okay we we coming we I now, got that, working think guys, March started hard the and out started right here. started, of

a hitting so, lot right around seeing wave And what you is this saw world. is the now as us are we harder

believe actions taken will and stabilize June. into time get we we’ve So the we by fundamentally

cost at why will be lot actions That’s will Business happening still have that through. our we a as and volume the up. but will our are level obviously – more we while start savings stepping down, stabilizes flowing

is other to a The had XXXX. thing you you a that, comment make I’ll going performance program since I variable all back we’ve – think early know share always

report we base we Chart that we started off and happened dramatically is the what’s hard by got our price shareholder showed wealth On is of of dropped locked when including X on a people me the Bob stock It Lal. of the showed – stock has hit locked like been quarter – first obviously in on first very and lot quarter February, Frank up. quarter Chart the going $X.XX this because and X

the variable lot is that lower cost. obviously plan But

So therefore we quarter. got a benefit this

up. assuming stock start stabilize will our price coming We are and back

little recovery. So we a of are factoring bit

based We’ve plant number we’ve So on had mark-to-market and you variable we a the second and all will the negative know over a as have half times. year. of out right the we now in always pointed

Steve Tusa

Got it.

not I happy it. appreciate you, Thank one. probably is Dave. dog about Your that too

David Farr

now. right food getting He's

So don’t worry about it,

Robert Sharp

home the likes quarantine. He

David Farr

the quarantine. lot got more home He He likes place bed. on


Robert Stephens. The next comes from from question ahead. go McCarthy Please

Robert McCarthy

team. and the for details. Dave morning, you all Thank Good

David Farr

not.. up? are holding are you are Where You Where you Rob. morning, Good hiding?

Robert McCarthy

couldn’t they Rejected three but out. Cambridge keep Massachusetts. me times,


David Farr

if to to going activity me. You want am you lot now. of talking know still guys I got don’t on right going I

be could stuff… You in fast

Robert McCarthy

Elizabeth I erect anybody and Warren to a $XXX,XXX. is But think going think No, taking guillotine I out I digress. a start over

David Farr

you don’t thank, Well, make a $XXX,XXX.

make safe should you don’t You be $XXX,XXX. because

Robert McCarthy

no. peanuts. for Yes, I know. I work

You know that.

just of So, – always. I underlying bit ask a as announced economy. you least any of Mr. excellent inquiry committee the wanted sit little The reopen the the on that the about event, the near-term. was Tusa's to at expanding upon in cadence Obviously, committees – the one to

I think group. of you working are part industrial the

I So my guy firm because prejudge gentleman sense how who The want monthly be owns is well. my get seriousness there that checks. in about the writes cycle of on all you think short wanted a North on I the near-term don’t and recommendations I we committee to as making to are careful better America? my

is getting think a to earlier blue red, here of get return kind I state economic you work. a least political about rhetoric. normalcy? about divide discussion into don’t do we’ve a How want heard Obviously, despite a what back People at to my and to big lot

about sense going But your of America comments, short and we are some how industrial perhaps I what’s of guidance plays you as a out embedded do want forward? in those in to the roll thinking cycle get amplify out North Bob can it

David Farr

I in this a all to because are professions of are mean, cut are starting the disappeared the and starting and town. they – revenue medical the of revenue tax business think and down to realize than is enormous people The this this other the now businesses off lot here around economy is political crisis I to it right lay of to shutting are the we see that, layers, leaders shortfall. having The what they starting costs see cost Coronavirus.

the And business the same world. thing in

all lives A institutions. are make will our fighting not we lot companies that think to it. as save I So and

from is to how We go we So, push the how and lot together isolation how geopolitical we from from get open company work trying We’ve do learned the economy perspective, about and standpoint. get my the and this standpoint safely. business a forward can both this this open. and a

I a than watch leaders. about. ever, leaders the business politicians been are business business has and There would lot talk leaders, more press ever collaboration ever,

you I for honest, right And I America. so, to two Rob, are going to tough see quarters see now the pretty be next are think going to be

coming There a exposed workforce zone you work of like lot and because in of as stopped have There is to down. this slow things being lot been it’s people our of concern a at and if a is leave back look house. killing even your to this

a are I U.S. in quarter. factoring that, fourth so, third the now we very, right think is weak And very so and

we the the internationally recovery looking starting already that’s of going to month think I see We for are we first. not happening and are that recovery to think are see April. here what in And I much

So, I get think you work. are back going to see a very to gradual

I think that hopefully, in. back we’ll start seeing some travel come

that is they travel slow for recovery a put the and I to be Thank, are how flood money wealth reality out is been so in not being you bring the Washington this money going is not so to back. has don't it world enough recover this much going is very wealth a industry. the while. lost and know But But get to in on here we're there this to there. much

how are that’s things people got to to we work time generating, that’s So and just take to back long and we and the making a factored into. get going

much an not at economic of all. Bob? North America are in do factoring see, We impact you What

Robert Sharp

more the all can I any comfort, industrial, we getting take environment, the little construction until mentioned, other outlook losses U.S. probably. second while. Yes. the ebb in job the difficult is The have get for I half cold is back a environment, dramatically until time to the that and which general challenged to of comfort the work Again, of people being chain going mean, us frankly as a see region. than for we the we

David Farr

Yes. look unemployed in at people the XXX I million over you mean, United States.

and out. Let to alone right hold climate, the come let alone done their people people now that want homes up fairly and in that are

So, It’s like dramatic. some to I think the going this take to be going is quite going be time. not China. It’s to

pull be Europe going think one. will anything and add? guys to tough else up sooner those it’s probably I Rob, and you to want

Robert Sharp


David Farr

Rob? else Anything

Robert McCarthy

of very your that, Safety on think attendance in top that’s of I no, guess, President Yes, so sobering. right. that’s I

David Farr


Robert McCarthy

I the don’t aside bureaucracy been Emerson? you but much of is Mike’s captive that’s of and discussion, everyone, chart, I you question thing too policy has into flex have been own facilities testing. again, across to kind kind of one some around for your your And for policy the would want at testing program have shortages look guess, and instituted you I get mettlesome

make the what for your confidence Or an you back to environment with have sure can that to go of done best workers safety? information you create

David Farr

spacing, mean, be cleanliness, to gotten I the the you the environment, facility having workforce, bit the clean the your everything Staggering right work hands can heat, everything around temperature issue, and this right else. equipment, cleaning the probably big The a we little temperature. virus, right right of different

could have several call going facilities. to is to days I talked about we’ve big President have, The your knows we a at a he before You that starts quick virus testing moving. this for and the business temperature all what issue to from standpoint have are

back hearing more to more going we and I out and am I So are go of Washington. work mean, yesterday assuming

us to allow They impact. faster are coming along will much with have that quick testing a

someone them around people we and are So her, they if out have they if or can him find and the if then and back cleanse comes facility, and are sick in sick them to sick isolate really quickly isolate then get test we work.

going are think we here to the of year. game So I this be rest in this for

vaccine. have in business vaccine – We’ve medical push it can’t left in I right be the thing we has had they There to from big ability it. a The think for Who that. now and who find the a wait business need that’s both testing because we communities, to to know any out wait vaccine. got the won’t at got Washington for

that We that. can around do everything except

we’ll And going testing the up that to upon And that industry. and of know know that’s going we testing. because they obviously millions quicker ramping and yesterday that’s so heard are drug they industry, benefit I that, the the come get news the pharmaceutical that I – that’s puts from why from that,

things we are right things got going now. It’s around In are and people time, to think we safe number tested. the can workers. globally mean mean come quick in we do everything to that come. confidence XX the But, to and we to under as to the is I the got But testing keep to where are we time to everything do have Rob, that had a that’s company, going give

this morning. guy. on tested. meets one that community individual had very in We've England worker It XX situation. passed was a people are away, unfortunate part-time every unfortunately Lal

who thing a they off. doing dropped paramount right Our The forward. are standpoint on really my isolations got new this you when people off But to top, what me faces we and dropped is has, like we have from and safety now. people are countering really top charge

there. You are out

You would am in World guy impression. you of with the that are I mean, the that II, I issues. dealing type got if lead War

one take are more analyst sell-side, we question that's to we to where I So and are. going more am it sell-side the down. from one then going lock


Sachs. Next question Goldman comes ahead. from Joe Ritchie from go Please

Joe Ritchie

Thanks. everyone. me Good in. Thanks morning, for fitting

David Farr

Joe. Hey,

Joe Ritchie

just, Dave, where the stand already curious, specifically? today, So, my you the quarter-to-date just on below you when in I about been about Is number that can talk think trending that decline versus XX% or that organic question, – just guess, am or you at third number, month-to-date that I April quarter, first that like number? number?

David Farr

Our right is order now below pattern negative XX.

better has Bob’s backlog. tracking are Lal’s that. is bit time some at we in business. get a So to on business that this little going than Lal point probably below

will with the So we to most – May. April, orders we we come come likely XX, will out minus at with look one-and-a-half, that out The plus be XX%. in XX%, we that will go around key and thing

some including dropping will that Europe. We get to the our out in trend we Joe. for right starting are stabilization quite international But markets rapidly. now, everybody, line see But

key is back do free us will right for this from near-term. the This wildcard we the fall how for big question now in be, and So the stabilize from the is is business standpoint Rob. in going my of U.S. a still comments a the substitute

tune. as to talk well committee yesterday morning, negative the today is even XX% So I I feel very I audit comfortable in this third quarter think XX%, that,

of are orders the XX% our expect in orders April. around our when and that that probably we XX%, back I we’ll come see And month

Joe Ritchie

it. Got

let and else’s information there kind everybody you that give to wanted us on just maybe following appreciate And detail you of of the all much did as like, rigor comments. today. Okay. I’ll is Really guys level go and

point, thoughts last really of know But of the so, kind just So the mean, China the XQ U.S. in you exactly into I it’s pattern as the following that how on that the we recovery head is Dave, year, hard that how growth when to be? going influencing in progress much think as improvement into about and the guess we is your XXXX? to I shape and through U.S. around

David Farr

said It’s to happen like of that people a it way. only sickness down that They shut seems controlled China I – from It think Joe, They earlier make not my this society. hard. was comparison the comparison. work same somehow in regions. that perspective, earlier is same extremely a I couple hard. to

around facilities, we in from in a came structurally. from learned standpoint our in we obviously, world. What safety the facilities they are China using And other

think I a completely Europe and cycle the It different But structure the looking at will is we different. a obviously. So U.S. are is completely help and cycle. here completely China different us

It’s in world. a different

time looking muted of So more it’s more U negative, the we see out a then back in U.S. a a in far longer structure stay do down half of at far in second back of to this and not we shaped are XXXX. type and what snap We U.S. at the is more gradually would are much say point going I it come quick

calendar needed, fourth fourth in somehow stuff. start that could I there away, think the quarter, that right to this back that’s we to the But going more testing got everyone quarter we we Now, work the of year. be if got third the seeing – maybe

this. model Lal let So sales U.S. Bob I am about the very and talk I’ll negative on and

right it we now. But that’s how see

from areas we for structuring on seeing on our now. right what each We of world and different historical cycle based completely custom the based norms are are a

So, Lal?

Lal Karsanbhai

agree. absolutely Yes,

yesterday, And was around a my the horn challenge anywhere more America with North so so I than went significantly world leaders it clearly area else.

David Farr

some give in America. don’t couple why So, colors me colors? We got North

Lal Karsanbhai

you. give Yes. I’ll

David Farr

this never much again. I’ll information give

we information. there rip tongue have out this if You much to my give

Lal Karsanbhai

were perspective you to approximately we down given RFQ globally, with XXXX as quarter give that around we what’s the month. went was is across already – runrate of $XXX in rates. businesses. booking rate through a first into happening the million our XX% But globally, just you our our That color I’ve quotation in Yes, XXXX.

In that’s of around $XXX book drop significant. That is very PX, XX-ish we plus percent… kind somewhere off million. But

David Farr

him April. for PX is

say period. work on Let’s

Lal Karsanbhai

That’s in April. U.S. and And the that hit Canada. is biggest the

The challenged other will world areas, Europe, Asia and Middle East the will exceed be therein. Americas their plan. particularly But

be call, honestly Asia normal they very we So, will a really America not return month impact. closely, But as normal Europe – look Surprisingly, to in as a and doesn’t booking. bad. it’s

David Farr

because lot medical that's.. getting is a of bookings Europe And

Lal Karsanbhai

call, yesterday lot downstream order and won controls, life and significant of would Azerbaijan digital I for control with honestly in a science, BP a gas David, system. oil our we twin

David Farr

and I market what international see right we So, an so now. that’s think it’s

the international want I Bob, very you you that to add have are add? Anything, companies to think will benefits. anything. the Bob want

Robert Sharp

longer. the to expect No. expect did, us see U.S. hard we as go Again to I don’t down see down we China as but stay think,

a all next will second that work, for get us. of half Again, back little be year second all If a depends. So, exciting very to it take could this people of kind is if time. there vaccination a half things,

pretty one then had out of strong that some will and come as up this we in that before. build scenario hopefully plays But well. these We’ve again that If longer, quarters could will our change.

David Farr

business was you. the to testing everyone the And that’s and look I that appreciate forward. everyone for what and I the a apologize. listening. for happen. But think people support it everybody have medical We want thank I and to But and thought need calls I material. calling I of lot input it’s important And to I tell know

talk hug I the busy appreciate point phone in will and we’ll everyone. some famous Trump, intend And people I see that unlike time in at very shake doctor hope the I here day. to works to be Donald follow-ups But everybody the the know for die. I able – hopefully for hands about to before that be and I Pete

a shake the all business. look I mean, I hand am seeing what are But rest assured going the But to shaker unfolds coming word, here water forward at Emerson that believe might if I disappear. you this I hand And months. now. jump will right be is forward and everybody so, seeing as well I to look we don’t in and to

take make is Emerson working the needs and hard solved can months. Emerson to everything in extremely working that to solve you. advantage coming Thank sure as here that and is be we


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