And there are no financial covenants in the revolver. However, in this, both are grappling with that fundamental lack of demand, Mike, as you pointed out. And we did a rebalancing about five or six years ago, seven years ago. You guys have given a lot of detail here. Nothing right now -- I'm more interested in stabilizing and then recovering. The bottom had already sort of collapsed last year. Three large projects remain in the funnel. We have a lot of projects under way right now working, clearly, within the discrete space, within the systems space, that move outside the oil and that marketplace. So, first question, just some historical context on how you're looking at the oil and gas cycle here. So, the key is, Steve, I think we'll still have savings coming into the first half of next year, but ones we will have to offset in the first half of the year will be things like the salary cuts because we will institute that. Do they have the money? Lal Karsanbhai -- Executive President, Emerson Automation Solutions. Yeah. Or what have you done to make sure that you can create the best information and environment for your workers to go back with some confidence of safety? The good news is China's recovery is better than expected. He is now in the process working with the HR teams and the global manufacturing teams to get the -- how do we come back out of this? You can see right now, directionally -- and it is certainly directionally because we're focused primarily on this period and this quarter more than anything -- but going into 2021, if it follows similar downturns of the past, we would expect by the second half to be turning up, and the magnitude of that is certainly to be determined by a lot of things. We've had letters. So, I think this is going to be quite dramatic. And as long as I'm here, our dividend will not be cut and we will maintain our dividend payments and history. And I don't believe this handshake will disappear. ET. I think it -- hopefully, we'll start seeing some travel come back in. And thanks for your detail. And I want to make sure people remember that we have this. Oh, that's pretty good. First question comes from Mike Halloran from Baird. We are not going to zero bonus. RFQ is down in that 25% rate in our -- across our businesses. So, I think that I feel very comfortable even today, as I talk to the Audit Committee yesterday morning, this 14%, 15% negative third quarter is well in tune. Dave, thanks for all the color here. I'll let Lal talk about Golden Pass, plus the one going on in the Middle East right now. We also had several executive -- we had an executive board meeting to discuss this issue and other actions. So, there will be some carryover into -- so, did you pull all of that into this year? So, Mike, I think you're right. That was largely a factor of the Chinese New Year timing versus last year. Restructuring actions totaled $29 million across the platform, which brought the total to $112 million for the first half of the year. And at that point in time, we're structuring our costs accordingly. We're very tight right now and the organizations are managing to that. Next question comes from Joe Ritchie from Goldman Sachs. Emerson Electric Co. has confirmed Earnings date and time. Those are the -- those two categories, as we talked about in New York, Andrew, are the quickest payback on restructuring and quickest to execute. I think they are bigger numbers now, Steve, because what's happened is we've done a lot more short-term numbers. Market data powered by FactSet and Web Financial Group. So, turning to chart 28. You were talking to various people, dealing with political leaders at all levels to make sure they understand the importance of this and then working very close with hands and hands with operations. The key thing that we'll come out with, we will come out with the orders in April and May. Q2 cash flow performance was solid. I think the big issue right now, Nicole, is in the second quarter, why our decremental margins were so much better is, obviously, we had a lot done in the first quarter. Certainly, the two keys for us for the second half are going to be what China does from a trajectory standpoint and then US summer is always a key variable for us, with the heavy air conditioning presence that we have. No, but it's a lot higher percent than you think. The deleverage is only 15%. So, we see more of a flattened slow recovery. Many projects -- a lot of these affect buildings, a lot of these affect bus and rail where we have air conditioning and refrigeration. So, I think this is going to happen globally over the next two or three years. There's a lot of concern even in our workforce of coming back to work and being exposed to this because people look at this as like it's a killing zone if you leave your house. But rest assured, Emerson's at business, Emerson is working and Emerson is working extremely hard to make sure that we can take advantage and solve everything that needs to be solved here in the coming months. The best cost. If it plays out longer, then that could change. (RTTNews) - Emerson Electric Co. (EMR) reported Tuesday that its second-quarter net earnings dropped 1 percent to $517 million from last year's $520 million. I also want to make one special emphasis on this. We are very, very good at managing cash flow. We also have about 15 other executives throughout the floor. They have a new plant coming up in Arizona. And we -- both of us, both Lal and Bob, we're talking from a customer's input. What we've seen recent announcements by the majors cutting CapEx down 22% versus '19, those kinds of ranges, it is important to note that, here in North America, it's a heavily concentrated space. But as we liquidate the balance sheet in the second half of the year, the toughest is going to be the inventory because inventory, the volume has dropped dramatically right now. So, those numbers will have to come back. On average, we book $40 million per month in those four countries. Has that been trending at that number already or below that number? That's a sensitivity on the sales plan. We do not see a quick snapback at this point in time in the US. We removed $203 million out of the funnel. Dine kontrolfunktioner til beskyttelse af private oplysninger, Oplysninger om din enhed og internetforbindelse, herunder din IP-adresse, Browsing- og søgeaktivitet ved brug af websites og apps fra Verizon Media. No, I'm just saying this is a pretty comprehensive conference call you're having here. Or did you just kind of accelerate those? And frankly, we're just going into the organization at a level -- part of it's volume related, but a lot of SG&A isn't necessarily easier to do with volume. Operating cash flow was up 7 percent to $533 million. Let's work this number and work it for him. By March, our orders were $125 million, down 9% versus 2019, and are expected to be down 10% in April as well, although I could see us closing that gap. So, that's what's going on. We can do this safely. And there's a significantly longer runway to continue to drive that. At what point do you think you get clarity from your customers, i.e., they've had enough time to scrub everything and get back to you because I would imagine you're not quite in that moment yet where they would come and what they want to do. So, we also had a very significant downturn. The Algorithm predicts "% Predicted Move After Earnings Announcement" (PMAEA) for EMR three weeks prior to earnings … And the biggest hit in that is the US and Canada. We've cut them back significantly. That is record time to stand up a pharma plant. We're going to spend $215 million. Geographically, we saw a broad-based weakness unfold in the quarter, but particularly in China and the US, down 8% and over 20% respectively. Underlying sales growth was well below expectations, down 7%, driven by the dramatic drop in global demand as the COVID-19 pandemic quickly spread in March. A lot of work goes into this. February, which normally would have been stronger, turned into effectively an extended Chinese New Year by a matter of weeks in some cases for some operations. Thank you. And then, the rest of the global people involved on our bonus programs took a cut of 5%, but you're going to see cutbacks, you're going to see furloughs, there's a lot of things that are going to be happening here. It's 24 hours a day, 7 days a week, day in and day out. Operational headwinds have dramatically increased. On the right, you can see from an update. We expect adjusted EPS of $0.60, plus or minus $0.04, which excludes roughly $100 million of planned restructuring actions in the quarter. And if they are sick, isolate them and quickly isolate people around them and then cleanse and then get back to work. It's now up to $280 million. In Europe, we went through some rough times in Italy, but things are much improved now. I'll answer first and let Lal answer this too. Operating cash flow increased by 10% to $588 million and free cash flow increased by 15% to $477 million, representing 91% conversion. 40 people are tested. Since Q2 Earnings Report EMR 30.4%. On chart 23, I wanted to give you a sense of the orders. As you can imagine, we are fighting a global pandemic war. There will be spending around some of the chemical side and the materials that go into that space. So, he'll probably have another $80 million for the whole year next year. Earnings Preview: Emerson Electric (EMR) Q2 Earnings Expected to Decline. So, that really paid off. But when we've come out of these before, we've had some pretty strong quarters. And then, just piggybacking on to that question, is there any big difference in the margin expectation by segment or will both face similar decrementals in the second half? We've got the manufacturing, engineering, supply chain, customer sales and support service and we look at ways, I call it the tic tac toe chart, we look at ways that we can serve the global marketplaces out of one or two and maybe even three other regional areas. I think you're exactly right. The business returned over $1.1 billion to shareholders, including over $800 million in share repurchases and over $300 million in dividends. Go on. Emerson Reports Second Quarter 2019 Results. We wanted to spend just a few minutes here on liquidity to dispel any concerns anyone has. Dividends. Emerson Radio last issued its earnings data on November 16th, 2020. I'm doing a video again this afternoon, 2 o'clock. Looking at the comparison you guys making with '08, '09, and I understand the bottoms-up fact that the company is better, but it seems that the GDP forecasts for 2020 are going to be weaker than what we even saw in the great financial crisis. Certainly, key leading in was obviously China. Hopefully, we'll be able to see everybody. And I must give our global Emerson team, who are likely listening into today's call, a big thank you for their collective efforts in working with customers, suppliers and governments to keep these critical industries running -- running when it's needed most. And I'll let Lal and Bob talk about this. So, Dave, just -- I guess, my first question, when you think about that 14% number, organic decline in the third quarter, can you just talk about April specifically? China led to the South Korea and Italy impacts, which then moved along to France and Russia, Middle East and the Americas. Well, I'll give you an example of Southern Europe, which is interesting. We just have other businesses from the standpoint of pharmaceutical, medical, chemical, whatever industries, power. You know that. But I just don't see us overwhelming that drop-off in sales that's hit us so hard in April, May and June. Trade working capital ended higher as a percentage of sales as ending inventory increased due to the sharp drop in demand in March. Well, the real impact started in the last two-and-a-half weeks in March. Can certainly appreciate the slide that Lal put together, the amount of KOB3 that's now in the portfolio. But the big issue is when we went into that one, we were growing very strongly and then the bottom fell out. And then, the drop-off in the sales, be it significant, but not the same level we're talking about in the third quarter. Obviously, on the facility rationalization, it is dependent on us building the best cost sites, so that we can execute some of those plants. Emerson Electric (EMR) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of … So, those will be two nuances on that. Yeah. You look at over 30 million unemployed people in the United States, let alone the people [Indecipherable], and let alone the people that are pretty holed up in their homes right now that don't want to come out. Refiners are facing difficult decisions. Certainly for us. So, we've got carryover about 40%. Obviously, you sit on the -- one of the committees that was just announced, the committee to reopen the economy. That's a substantial percentage. He's getting food right now. David N. Farr -- Chairman and Chief Executive Officer. We still will generate strong cash flow, but not at the same level because earnings are dropping. So, don't worry about it. So, if you could speak to the decremental margins as well as the expectation for restructuring payback. And I'll have more comments on this in a second. I won't get one into 2021, which most likely means I'll get nothing because I will be retiring. Zacks . Asia, Middle East and Africa were down 15%, driven by China, which was down sharply over 30%. Even supermarkets, which we're all realizing are critical infrastructure, are very limiting as far as who they want in the sites. We'll get that out for everybody, Joe. So, overall, we are only down 3%, Automation Solutions only down 1%. There'll be run rate, obviously, impact because of what we're doing incrementally this year. Maybe just a first question, David, looking at slide 24, and you've got that scenario of the big dip in fiscal Q3 and then staggering back toward a sort of flattish line a year out. So, those are things that we will do. I think this, in transition, will be more out there in the '23, '24 and '25 time period based on my historical knowledge of this. So, from my perspective, the push forward is trying to get the economy open and get business open. North America is very challenged. And I certainly want to extend a special thanks to that group. The other aspect is that we believe that the refining segment will rebound a little quicker as demand normalizes. You're going to be close to 30%? Thank you. And so, what we're going to have to do here is evaluate this from an economic standpoint and an enterprise risk standpoint is looking at this model now and say, 'Okay, do we have to have four?' And then, yesterday, we had the audit committee meeting. Emerson Electric (EMR) Earnings Report: Q2 2016 Conference Call Transcript The following Emerson Electric conference call took place on May 3, 2016, 02:00 PM ET. So, there's two avenues here. Emerson Electric (EMR) Q2 Earnings Beat Estimates. We have a very strong position in oil and gas. Yeah, I absolutely agree. Commercial and Residential Solutions underlying sales and orders were both down 5%. Approximately 50 players generate 80% of the oil production in the United States. So, I'm very negative on the US growth model. And so, what you're seeing right now is this wave is hitting us a lot harder as we saw around the world. Just a question. This is on chart 24. And if we get comfortable that things are improving, we'll start to work that down, but for now we think it's prudent to have that on the balance sheet, just in case that there should be a downward turn in market conditions. Four, we have increased engagement with customers using our remote educational services. But we do know what happened to us, and I guarantee you there will be changes as we leave this year on a calendar year basis and as we move into 2021 on a calendar year basis. And that's also, we anticipate, being a key as far as coming out of it as they work on stimulating the economy. We had a couple -- last year, for Bob's business, he was flat or slightly down. The two other areas, David, that I'm particularly focused on from a diversification perspective are in the hybrid segment, life science particularly, as we touched on, Mike, and the power segment. And so, what I see right now, to be honest, Rob, I think you're going to see the next two quarters are going to be pretty tough for America. It started turning down -- the first half of last year was down 20 plus percent and we felt we were coming out of that with some ups and downs. The platform delivered strong profitability in a very challenging demand environment. So, again, at this point, we're buckling down for a very challenging quarter that we're in. Darius and I actually talked several times on this issue to make sure they got equipment. We recognized savings from the restructuring and other activities in the first half of $46 million, OK? I just want you to make sure, but I think it's important that our investors understand what we are living in day in and day out. So, we're in very, very good shape if there should be a market disruption. So, we've accelerated some stuff in, and therefore, the $83 million. They are coming along with quick testing to allow us to have a much faster impact. If we can only convert a third of that backlog assumption, meaning about $100 million, Q4 will be down 12% and 2020 sales will be down approximately 8%. It's got to come to give confidence to the workers. It's obviously just escalated a little bit higher, but it's been going on for some time. If we're going to go back, assuming -- I'm hearing more and more words. Okay, Josh. Yes. Good morning and thank you and welcome everyone to Emerson's Second Quarter 2020 earnings conference call. And frankly, we've done a lot of work to give away a lot of these things initially, particularly N95 and KN95 masks, which are basically the Chinese standard of the N95 masks. And it is the liquids and the gas side that I would worry about, which is about 20% of the total business. So, we'll have a negative number based on right now in the second half of the year. And in the meantime, I do know we'll make some changes as we go forward here in '20, late '20 and early '21. The big issue that we've all talked to the president, Bob, he knows this from a business standpoint, is we're going to have to have, what I call, quick-testing facilities. I think Europe and those guys will probably fall off sooner, and it's going to be a tough one. So, we have to continue to diversify. So, it's going to take a little time. They are under way, but, obviously, building plants takes time, accelerating as best we can. And so, Mike has been leading this battle with the operating leaders at the same time, taking care of this battle. Next call comes from Josh Pokrzywinski from Morgan Stanley. The team has identified an additional $53 million of restructuring, bringing the total for 2020 to $230 million and driving annualized savings of $314 million. Thermo Fisher, an important customer of ours, needs refrigeration for some of their COVID test stations -- some of the testing environment and we're able to supply a number of those quickly. And that's something that we're working on right now as a corporation and I'll work with the full comp committee and the full board. So, Mike, I'm turning it over to you. And given the CEO that runs this company, you guys know me pretty well. Mike, I want to thank you very much for this issue. So, the numbers are bigger than I talked about earlier, but it's always hard to tie back to other things I've said over the phone. We're going to stay down longer and then gradually come back out of it in the second half of '21. Orders were down 0.8 point in Q2 versus the 2.3% plan and will weaken and trough in Q3 and stay negative for five consecutive quarters, as we have modeled the next four quarters. An additional $40 million of savings are generated by pull back of discretionary spending and other cost actions. It takes a team effort and we've divided and conquered and formed task force and worked this on a day-to-day, face-to-face basis, and I want to make sure that everyone's recognized for that. And a lot of it is because nobody just -- nobody really knows what to expect. That's damn close. So, we see these as a proxy. Now turning to slide 6. Yes. Walking across, we have 2019 adjusted EPS of $3.69, which excludes $0.14 of favorable discrete tax items and adds back $0.12 of restructuring. Emerson Electric (EMR) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.76 per share. Or is it just you're being more aggressive on footprint? Bob, do you want to add anything to that? I firmly believe, based on what we're seeing in our customer base, in both the chemical industry, what we see in, obviously, the food and beverage, the hybrid, the medical industries, we're seeing a push to try to rebalance some of these -- the supply chains and also where they make stuff. Q2 ended very differently than what we thought, starting with China downturn in February, a delayed coming out of Chinese New Year, and then going into March as we'll talk about. And every one of us, myself and Bob and Lal and Steve and Mike, we've all had videos. And, David, to your point around gas, you're absolutely right. So, what we're mapped out here, Andrew, is a different -- a slower recovery within the markets outside of China. The starting point for the bridge is 2019 GAAP EPS of $3.71. They worked extremely hard. Lal's still got some backlog. And unlike the famous doctor that works with Donald Trump, I intend to shake hands and hug people at some point in time before I die. Both businesses are using this opportunity to really evaluate, 'Okay, how do we set the cost structure even stronger for us going forward, looking at layers, looking at organizations and what do we really need to do relative to the organization to make sure we win, but also have the right cost structure?' No, I know. Now, there are issues we'll deal with when we get out of this, but from my perspective, this whole regional strategy, one you hear now even the President of the United States talk about, is something that's been very effective for this company relative to serving our customers. One being the North America impact, which is most significant in the third quarter, accelerates from March into Q3, and the book-to-ship businesses impact. Adjusted EBIT and adjusted EBITDA margins were up 50 basis points and 130 basis points respectively, reflecting aggressive cost actions taking effect. We're doing well from the standpoint of what's going on in the economy, but it's still going to start dropping down, and hence the very weak third quarter that Pete outlined with you earlier. He likes home quarantine. And the key issue is for the next CEO is to make sure that he or she does not allow those structural costs to come back in. Certainly, discretionary, I think most everybody else is doing the same thing, is practically nonexistent. Oh, OK. But you're going to see a lot of the -- as the White House, and I'm sure every government around the world is looking at, all the areas that went into the healthcare, the medical, the type of chemicals, whatever they need, pharmaceutical, I guarantee you they're going to look at how do you -- around the world, not just the US, but also Europe and Asia, they're going to look at, 'Okay, where do we need to make those investments?' 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