Emerson Electric Co (EMR) Q2 2020 Earnings Call Transcript

Emerson Electric Co (EMR) Q2 2020 Earnings Call Transcript

Emerson Electric Co ( NYSE:EMR ) Q2 2020 Earnings Call Apr 21, 2020 , 9:00 a.m. ET. We get together on an ongoing basis to make sure we're making decisions -- constantly making decisions.. Trailing three-month orders were down 3%, also reflective of the decaying demand environment, but indicating some modest backlog buildup.. Despite lower sales, both platforms executed well on profitability, exceeding their adjusted EBIT and adjusted EBITDA peak margin plans for the quarter due to previously initiated and ongoing restructuring actions.. Cash flow performance was solid in the quarter, with operating cash flow of $588 million and free cash flow of $477 million, up 10% and 15% respectively.. The company continued and built upon its aggressive cost reset plan, initiating $40 million of restructuring actions in the quarter.. Second quarter gross margin was flat at 42.1% as favorable price cost and cost containment actions offset the declining revenues.. Adjusted EBIT and adjusted EBITDA margins, which exclude restructuring and related costs, increased 240 basis points and 300 basis points respectively.. The improvements primarily reflected lower stock compensation costs combined with aggressive cost containment actions taking effect.. Overall, the company continued to execute on peak margin plans, which were laid