- Delivered resilient earnings growth and operating cash flow
despite delayed recovery
- Revenue increase of 2% year-over-year to $1.55
billion
- Operating profit margin was 19%, with adjusted operating
profit margin of 27%, up 90 bps year-over-year
- GAAP diluted EPS of $0.55, adjusted diluted EPS of $0.93,
representing high-end of guidance; reported operating cash flow of
$309 million and free cash flow of $280 million, ahead of
guidance
- Strong full-year 2024 outlook; GAAP diluted EPS of $2.68 to
$2.74, year-over-year increase of 10% to 13%; adjusted diluted EPS
of $3.80 to $3.86, year-over-year increase of 11% to 13%
Fortive Corporation (“Fortive”) (NYSE: FTV) today announced
financial results for the second quarter of 2024.
For the second quarter, net earnings were $195 million. For the
same period, adjusted net earnings were $329 million. Diluted net
earnings per share for the second quarter were $0.55. For the same
period, adjusted diluted net earnings per share were $0.93.
For the second quarter, revenues increased 2% year-over-year to
$1.55 billion, which included flat core revenue growth.
James A. Lico, President and Chief Executive Officer, stated,
“Strong execution across our businesses resulted in earnings and
cash flow at the high-end of our guidance in the second quarter.
Our performance reflects our ability to adapt to the delayed
recovery we are seeing in certain end markets and deliver
differentiated financial results, enabled by FBS-led innovation and
productivity. Our leadership position across durable growth markets
is reflected in upside performance in Advanced Healthcare Solutions
and continued momentum in Intelligent Operating Solutions,
positioning Fortive well for the future.”
For the third quarter of 2024, Fortive anticipates revenue of
approximately $1.55 billion, diluted net earnings per share of
$0.63 to $0.66 and adjusted diluted net earnings per share of $0.92
to $0.95.
For the full year 2024, Fortive anticipates revenue of
approximately $6.25 billion to $6.30 billion, diluted net earnings
per share of $2.68 to $2.74, and adjusted diluted net earnings per
share of $3.80 to $3.86.
Mr. Lico continued, “Our updated 2024 outlook reflects
double-digit earnings and cash flow growth, including a balanced
view of end markets, specifically in the Precision Technologies
segment. As we look ahead, we are excited to see the acceleration
of our innovation and new product launches delivering more value
for customers and more sustainable growth for Fortive.”
CONFERENCE CALL DETAILS
Fortive will discuss results and outlook during its quarterly
investor conference call today starting at 12:00 p.m. ET. The call
and an accompanying slide presentation will be webcast on the
“Investors” section of Fortive’s website, www.fortive.com, under
“Events & Presentations.” A replay of the webcast will be
available at the same location shortly after the conclusion of the
presentation.
The conference call can be accessed by dialing 877-407-3110
within the U.S. or by dialing 215-268-9915 outside the U.S. a few
minutes before 12:00 p.m. ET and notifying the operator that you
are dialing in for Fortive’s earnings conference call. A digital
recording of the conference call will be available two hours after
the completion of the call until Wednesday, August 7, 2024. You can
access the conference call replay on the “Investors” section of
Fortive’s website, www.fortive.com, under “Events/Presentations,”
or by dialing 877-660-6853 within the U.S. or 201-612-7415 outside
the U.S (Access ID: 13747612).
ABOUT FORTIVE
Fortive is a provider of essential technologies for connected
workflow solutions across a range of attractive end-markets.
Fortive’s strategic segments - Intelligent Operating Solutions,
Precision Technologies, and Advanced Healthcare Solutions - include
well-known brands with leading positions in their markets. The
company’s businesses design, develop, service, manufacture, and
market professional and engineered products, software, and
services, building upon leading brand names, innovative
technologies, and significant market positions. Fortive is
headquartered in Everett, Washington and employs a team of more
than 18,000 research and development, manufacturing, sales,
distribution, service and administrative employees in more than 50
countries around the world. With a culture rooted in continuous
improvement, the core of our company’s operating model is the
Fortive Business System. For more information please visit:
www.fortive.com.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), this earnings
release also references “adjusted net earnings,” “adjusted diluted
net earnings per share,” “adjusted operating profit margin,” “free
cash flow,” and “core revenue growth,” which are non-GAAP financial
measures. The reasons why we believe these measures, when used in
conjunction with the GAAP financial measures, provide useful
information to investors, how management uses such non-GAAP
financial measures, a reconciliation of these measures to the most
directly comparable GAAP measures and other information relating to
these measures are included in the supplemental reconciliation
schedule attached. The non-GAAP financial measures should not be
considered in isolation or as a substitute for the GAAP financial
measures, but should instead be read in conjunction with the GAAP
financial measures. The non-GAAP financial measures used by Fortive
in this release may be different from similarly-titled non-GAAP
measures used by other companies.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical,
including statements regarding anticipated financial results,
business and acquisition opportunities, economic conditions,
industry trends, future prospects, shareholder value, timing of
transactions, and any other statements identified by their use of
words like “anticipate,” “expect,” “believe,” “outlook,”
“guidance,” “target,” or “will” or other words of similar meaning
are “forward-looking” statements within the meaning of the federal
securities laws. These factors include, among other things:
deterioration of or instability in the economy, the markets we
serve, international trade policies, the condition of the financial
markets and the banking systems, security breaches or other
disruptions of our information technology systems, the spread of,
and the future resurgence of COVID-19, our ability to adjust
purchases, supply chain management, and manufacturing capacity to
reflect market conditions and customer demand, reliance on sole
sources of supply, changes in relations with China, contractions or
lower growth rates and cyclicality of markets we serve,
competition, changes in industry standards and governmental
regulations, our ability to recruit and retain key employees, our
ability to successfully identify, consummate, integrate and realize
the anticipated value of appropriate acquisitions and successfully
complete divestitures and other dispositions, our ability to
develop and successfully market new products, software, and
services and expand into new markets, the potential for improper
conduct by our employees, agents or business partners, contingent
liabilities relating to acquisitions and divestitures, impact of
changes to tax laws, our compliance with applicable laws and
regulations and changes in applicable laws and regulations, risks
relating to international economic, geopolitical, including war and
sanctions, legal, compliance and business factors, risks relating
to potential impairment of goodwill and other intangible assets,
currency exchange rates, tax audits and changes in our tax rate and
income tax liabilities, the impact of our debt obligations,
including our cost of debt, on our operations, litigation and other
contingent liabilities including intellectual property and
environmental, health and safety matters, our ability to adequately
protect our intellectual property rights, risks relating to
product, service or software defects, product liability and
recalls, risks relating to product manufacturing, our relationships
with and the performance of our channel partners, commodity costs
and surcharges, adverse effects of restructuring activities, risk
related to tax treatment of the separation of Vontier, impact of
our indemnification obligation to Vontier, impact of changes to
U.S. GAAP, labor matters, and disruptions relating to man-made and
natural disasters and climate change. Additional information
regarding the factors that may cause actual results to differ
materially from these forward-looking statements is available in
our SEC filings, including our Annual Report on Form 10-K for the
year ended December 31, 2023. These forward-looking statements
speak only as of the date of this release, and Fortive does not
assume any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events
and developments or otherwise.
FORTIVE CORPORATION AND
SUBSIDIARIES
CONSOLIDATED CONDENSED
STATEMENTS OF EARNINGS
($ and shares in millions,
except per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Sales
$
1,552.4
$
1,526.4
$
3,076.9
$
2,987.1
Cost of sales
(624.1
)
(621.0
)
(1,244.4
)
(1,233.5
)
Gross profit
928.3
905.4
1,832.5
1,753.6
Operating costs:
Selling, general and administrative
expenses
(525.4
)
(514.0
)
(1,086.4
)
(1,021.7
)
Research and development expenses
(101.1
)
(100.1
)
(205.2
)
(200.2
)
Gain on sale of property
—
—
63.1
—
Operating profit
301.8
291.3
604.0
531.7
Non-operating income (expense), net:
Interest expense, net
(38.7
)
(33.1
)
(82.7
)
(65.2
)
Loss from divestiture
(25.6
)
—
(25.6
)
—
Other non-operating expense, net
(8.8
)
(7.8
)
(33.0
)
(10.3
)
Earnings before income taxes
228.7
250.4
462.7
456.2
Income taxes
(33.6
)
(41.4
)
(60.2
)
(73.6
)
Net earnings
$
195.1
$
209.0
$
402.5
$
382.6
Net earnings per share:
Basic
$
0.56
$
0.59
$
1.15
$
1.08
Diluted
$
0.55
$
0.59
$
1.13
$
1.07
Average common stock and common equivalent
shares outstanding:
Basic
351.3
353.0
351.5
353.3
Diluted
354.8
355.5
355.4
356.0
This information is presented for reference only. A complete
copy of Fortive’s Form 10-Q financial statements is available on
the Company’s website (www.fortive.com).
FORTIVE CORPORATION AND
SUBSIDIARIES
SEGMENT INFORMATION
($ in millions)
(unaudited)
Three Months Ended
Six Months Ended
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Sales:
Intelligent Operating Solutions
$
677.0
$
653.1
$
1,342.7
$
1,285.2
Precision Technologies
551.8
560.3
1,110.8
1,101.4
Advanced Healthcare Solutions
323.6
313.0
623.4
600.5
Total
$
1,552.4
$
1,526.4
$
3,076.9
$
2,987.1
Operating Profit:
Intelligent Operating Solutions
$
173.2
$
161.7
$
337.3
$
295.2
Precision Technologies
115.3
136.8
264.4
260.4
Advanced Healthcare Solutions
40.2
25.4
67.7
40.8
Other (a)
(26.9
)
(32.6
)
(65.4
)
(64.7
)
Total
$
301.8
$
291.3
$
604.0
$
531.7
Operating Margins:
Intelligent Operating Solutions
25.6
%
24.8
%
25.1
%
23.0
%
Precision Technologies
20.9
%
24.4
%
23.8
%
23.6
%
Advanced Healthcare Solutions
12.4
%
8.1
%
10.9
%
6.8
%
Total
19.4
%
19.1
%
19.6
%
17.8
%
(a) Operating profit amounts in the Other
category consist of unallocated corporate costs and other costs not
considered part of our evaluation of reportable segment operating
performance.
This information is presented for reference only. A complete
copy of Fortive’s Form 10-Q financial statements is available on
the Company’s website (www.fortive.com).
FORTIVE CORPORATION AND
SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE
SHEETS
($ and shares in millions,
except per share amounts)
As of
June 28, 2024
December 31, 2023
(unaudited)
ASSETS
Current assets:
Cash and equivalents
$
644.1
$
1,888.8
Accounts receivable less allowance for
doubtful accounts of $27.8 and $39.2, respectively
934.5
960.8
Inventories:
Finished goods
224.0
214.1
Work in process
116.1
108.9
Raw materials
231.9
213.9
Inventories
572.0
536.9
Prepaid expenses and other current
assets
368.9
285.1
Total current assets
2,519.5
3,671.6
Property, plant and equipment, net of
accumulated depreciation of $810.2 and $809.0, respectively
417.9
439.8
Other assets
540.0
518.9
Goodwill
10,216.5
9,121.7
Other intangible assets, net
3,591.1
3,159.8
Total assets
$
17,285.0
$
16,911.8
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt
$
383.9
$
—
Trade accounts payable
636.1
608.6
Accrued expenses and other current
liabilities
1,025.8
1,182.7
Total current liabilities
2,045.8
1,791.3
Other long-term liabilities
1,337.0
1,149.0
Long-term debt
3,396.4
3,646.2
Commitments and Contingencies (Note 9)
Equity:
Common stock: $0.01 par value, 2,000.0
shares authorized; 365.6 and 363.7 issued; 350.3 and 350.7
outstanding, respectively
3.7
3.6
Additional paid-in capital
3,937.3
3,851.3
Treasury shares, at cost
(870.4
)
(715.8
)
Retained earnings
7,852.3
7,505.9
Accumulated other comprehensive loss
(423.6
)
(326.1
)
Total Fortive stockholders’ equity
10,499.3
10,318.9
Noncontrolling interests
6.5
6.4
Total stockholders’ equity
10,505.8
10,325.3
Total liabilities and equity
$
17,285.0
$
16,911.8
This information is presented for reference only. A complete
copy of Fortive’s Form 10-Q financial statements is available on
the Company’s website (www.fortive.com).
FORTIVE CORPORATION AND
SUBSIDIARIES
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
($ in millions)
(unaudited)
Six Months Ended
June 28, 2024
June 30, 2023
Cash flows from operating activities:
Net earnings
$
402.5
$
382.6
Noncash items:
Amortization
227.1
184.2
Depreciation
46.2
42.1
Stock-based compensation expense
53.1
55.7
Gain on sale of property
(63.1
)
—
Loss from divestiture
25.6
—
Change in trade accounts receivable,
net
24.6
26.0
Change in inventories
(12.0
)
(27.4
)
Change in trade accounts payable
30.7
(36.4
)
Change in prepaid expenses and other
assets
(11.5
)
(13.1
)
Change in accrued expenses and other
liabilities
(157.6
)
(118.3
)
Net cash provided by operating
activities
565.6
495.4
Cash flows from investing activities:
Cash paid for acquisitions, net of cash
received
(1,721.8
)
—
Payments for additions to property, plant
and equipment
(55.6
)
(45.8
)
Proceeds from sale of property
10.8
4.9
Cash infusion into divestiture
(14.0
)
—
All other investing activities
(1.6
)
—
Net cash used in investing
activities
(1,782.2
)
(40.9
)
Cash flows from financing activities:
Net proceeds from (repayments of)
commercial paper borrowings
(571.5
)
(268.6
)
Proceeds from borrowings (maturities
greater than 90 days), net of issuance costs
1,733.5
—
Repayment of borrowings (maturities
greater than 90 days)
(1,000.0
)
—
Repurchase of common shares
(152.9
)
(129.1
)
Payment of dividends
(56.1
)
(49.3
)
All other financing activities
31.9
5.6
Net cash used in financing
activities
(15.1
)
(441.4
)
Effect of exchange rate changes on cash
and equivalents
(13.0
)
(9.5
)
Net change in cash and equivalents
(1,244.7
)
3.6
Beginning balance of cash and
equivalents
1,888.8
709.2
Ending balance of cash and equivalents
$
644.1
$
712.8
This information is presented for reference only. A complete
copy of Fortive’s Form 10-Q financial statements is available on
the Company’s website (www.fortive.com).
FORTIVE CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND
OTHER INFORMATION
Management believes that each of the non-GAAP financial measures
described below provide useful information to investors by
reflecting additional ways of viewing aspects of our operations
that, when reconciled to the corresponding GAAP measure, help our
investors to understand the long-term profitability trends of our
business, and facilitate comparisons of our operational performance
and profitability to prior and future periods and to our peers.
These non-GAAP measures should be considered in addition to, and
not as a replacement for or superior to, the comparable GAAP
measures, and may not be comparable to similarly titled measures
reported by other companies.
Adjusted Net Earnings, Adjusted Diluted Net
Earnings per Share, and Adjusted Operating Profit Margin
We disclose the non-GAAP measures of historical adjusted net
earnings, historical and forecasted adjusted diluted net earnings
per share and historical adjusted operating profit margin, which to
the extent applicable, make the following adjustments to GAAP net
earnings, GAAP diluted net earnings per share, and GAAP operating
profit margin:
- Excluding on a pretax basis amortization of acquisition related
intangible assets and non-cash impairments;
- Excluding on a pretax basis acquisition and divestiture related
items;
- Excluding on a pretax basis the gain on sale of property;
and
- Excluding on a pretax basis the costs incurred pursuant to
discrete restructuring plans that are fundamentally different from
ongoing productivity improvements in terms of the size, strategic
nature, planning requirements and the inconsistent frequency of
such plans as well as the associated macroeconomic drivers which
underlie such plans (the “Discrete Restructuring Charges”).
In addition, with respect to the non-GAAP measures of historical
adjusted net earnings and historical and forecasted adjusted
diluted net earnings per share, we make the following adjustments
to GAAP net earnings and GAAP diluted net earnings per share:
- Excluding on a pretax basis the effect of gains and losses from
our equity investments;
- Excluding the loss from divestiture;
- Excluding on a pretax basis the charitable contribution
expense; and
- Excluding the tax effect (to the extent tax deductible) of the
pretax adjustments noted above. The tax effect of such adjustments
was calculated by applying our overall estimated effective tax rate
to the pretax amount of each adjustment (unless the nature of the
item and/or the tax jurisdiction in which the item has been
recorded requires application of a specific tax rate or tax
treatment, in which case the tax effect of such item is estimated
by applying such specific tax rate or tax treatment). We expect to
apply our overall estimated effective tax rate to each adjustment
going forward.
Amortization of Acquisition Related Intangible Assets and
Non-cash Impairments
As a result of our acquisition activity, we have significant
amortization expense associated with definite-lived intangible
assets. We adjust for amortization expense of acquisition related
intangible assets incurred in each period, and impairment charges
incurred, if any. During the three and six-month periods ended June
30, 2023 we recognized $2.9 million related to impairment charges.
We believe that this adjustment provides our investors with
additional insight into our operational performance and
profitability as such impacts are not related to our core business
performance.
Acquisition and Divestiture Related Items
While we have a history of acquisition and divestiture activity,
we do not acquire and divest businesses or assets on a predictable
cycle. The amount of an acquisition’s purchase price allocated to
inventory fair value adjustments are unique to each acquisition and
can vary significantly from acquisition to acquisition. In
addition, transaction costs, which include acquisition,
divestiture, integration and restructuring costs related to
completed or announced transactions, and the non-recurring gains on
divestitures of businesses or assets are unique to each transaction
and are impacted from period to period depending on the number of
acquisitions or divestitures evaluated, pending, or completed
during such period, and the complexity of such transactions.
We adjust for transaction costs, acquisition related fair value
adjustments to inventory, integration costs and corresponding
restructuring charges related to acquisitions, in each case,
incurred in a given period. We believe, however, that it is
important for investors to understand that such inventory fair
value adjustments related to past acquisitions will recur in future
periods until such inventory fair value adjustments, as applicable,
have been fully amortized.
Gains and Losses from Equity Investments
We adjust for the effect of earnings and losses from our equity
method investments over which we do not exercise control over the
operations or the resulting earnings or losses. We believe that
this adjustment provides our investors with additional insight into
our operational performance. However, it should be noted that
earnings and losses from our equity method investments will recur
in future periods while we maintain such investments.
In addition, we adjust for remeasurement gains and losses,
including impairment loss, on equity investments. We believe such
adjustments facilitate comparison of our performance with prior and
future periods and provides our investors with additional insight
into our operational performance.
Loss from Divestiture
In June 2024, we divested and transferred ownership of Invetech,
excluding the Motion Solution Business, to its management team (the
“Invetech Divestiture”). As a result of the divestiture, in the
three and six-month periods ended June 28, 2024, we recorded a net
realized loss of $25.6 million. We adjust for the loss from the
Invetech Divestiture because we believe the adjustment facilitates
comparison of our performance with prior and future periods and
provides our investors with additional insight into our operational
performance.
Gain on Sale of Property and Charitable Contribution Expense
On March 14, 2024 we completed a transaction to sell land and
certain office buildings in our Precision Technologies segment for
$90 million, for which we received $20 million cash proceeds and a
$70 million promissory note secured by a letter of credit, with
principal due in August and November 2024. During the six-month
period ended June 28, 2024, we recorded a gain on sale of property
of $63.1 million in the Consolidated Condensed Statements of
Earnings.
Concurrently, we pledged to make a charitable donation of $20
million to the Fortive Foundation, a related party, without any
donor imposed conditions or restrictions. During the three-month
period ended March 29, 2024, we recorded a charitable contribution
expense of $20 million within the “Other non-operating expense,
net” line in the Consolidated Condensed Statements of Earnings.
We adjust for the gain on sale of property and charitable
donation expense because we believe the adjustment facilitates
comparison of our performance with prior and future periods and
provides our investors with additional insight into our operational
performance.
Discrete Restructuring Costs
We will exclude costs incurred pursuant to discrete
restructuring plans that are fundamentally different in terms of
the size, strategic nature and planning requirements, as well as
the inconsistent frequency, of such plans originating from
significant macroeconomic trends or material disruptions to
operations, economy or capital markets from the ongoing
productivity improvements that result from application of the
Fortive Business System or from execution of general cost saving
strategies. Because these restructuring plans will be incremental
to the fundamental activities that arise in the ordinary course of
our business and we believe are not indicative of our ongoing
operating costs in a given period, we exclude these costs to
facilitate a more consistent comparison of operating results over
time. Restructuring costs related primarily to an acquisition are
not included in this adjustment but are instead included in
acquisition and divestiture related items. Discrete restructuring
charges adjusted for in both periods are related to our 2023
discrete plan.
Management believes that each of the non-GAAP financial measures
noted above provide useful information to investors by reflecting
additional ways of viewing aspects of our operations that, when
reconciled to the corresponding GAAP measure, help our investors to
understand the long-term profitability trends of our business, and
facilitate comparisons of our operational performance and
profitability to prior and future periods and to our peers.
These non-GAAP measures should be considered in addition to, and
not as a replacement for or superior to, the comparable GAAP
measures, and may not be comparable to similarly titled measures
reported by other companies.
Core Revenue Growth
We use the term “core revenue growth” when referring to a
corresponding year-over-year GAAP revenue measure, excluding (1)
the impact from acquired or divested businesses and (2) the impact
of currency translation. References to sales attributable to
acquisitions or acquired businesses refer to GAAP sales from
acquired businesses recorded prior to the first anniversary of the
acquisition less the amount of sales attributable to certain
divested businesses or product lines that have been divested or, at
the time of reporting, are pending divestiture but are not, and
will not be, considered discontinued operations prior to the first
anniversary of the divestiture. The portion of sales attributable
to the impact of currency translation is calculated as the
difference between (a) the period-to-period change in sales
(excluding sales impact from acquired businesses) and (b) the
period-to-period change in sales (excluding sales impact from
acquired businesses) after applying the current period foreign
exchange rates to the prior year period. This non-GAAP measure
should be considered in addition to, and not as a replacement for
or superior to, the comparable GAAP measure, and may not be
comparable to similarly titled measures reported by other
companies.
Management believes that this non-GAAP measure provides useful
information to investors by helping identify underlying growth
trends in our business and facilitating comparisons of our revenue
performance with prior and future periods and to our peers. We
exclude the effect of acquisition and divestiture-related items
because the nature, size and number of such transactions can vary
dramatically from period to period and between us and our peers. We
exclude the effect of currency translation from sales measures
because currency translation is not under management’s control and
is subject to volatility. We believe that such exclusions, when
presented with the corresponding GAAP measures, may assist in
assessing the business trends and making comparisons of long-term
performance.
Free Cash Flow
We use the term “free cash flow” when referring to cash provided
by operating activities calculated according to GAAP less payments
for capital expenditures.
Management believes that such non-GAAP measure provides useful
information to investors in assessing our ability to generate cash
without external financing, fund acquisitions and other investments
and, in the absence of refinancing, repay our debt obligations.
However, it should be noted that free cash flow as a liquidity
measure has material limitations because it excludes certain
expenditures that are required or that we have committed to, such
as debt service requirements and other non-discretionary
expenditures. Such non-GAAP measure should be considered in
addition to, and not as a replacement for or superior to, the
comparable GAAP measure, and may not be comparable to similarly
titled measures reported by other companies.
Adjusted Operating Profit and Adjusted
Operating Profit Margin (unaudited)
Three Months Ended
Six Months Ended
($ in millions)
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Revenue (GAAP)
$
1,552.4
$
1,526.4
$
3,076.9
$
2,987.1
Operating Profit (GAAP)
$
301.8
$
291.3
$
604.0
$
531.7
Amortization of Acquisition-Related
Intangible Assets and Non-cash Impairments
113.4
94.6
227.1
187.0
Acquisition and Divestiture Related
Items
2.1
—
31.7
—
Gain on sale of property
—
—
(63.1
)
—
Discrete Restructuring Charges
—
10.7
—
28.3
Adjusted Operating Profit
(Non-GAAP)
$
417.3
$
396.6
$
799.7
$
747.0
Operating Profit Margin (GAAP)
19.4
%
19.1
%
19.6
%
17.8
%
Adjusted Operating Profit Margin
(Non-GAAP)
26.9
%
26.0
%
26.0
%
25.0
%
The sum of the components of adjusted
operating profit may not equal due to rounding.
Adjusted Net Earnings and Adjusted
Diluted Net Earnings Per Share (unaudited)
Three Months Ended
Six Months Ended
($ in millions, except per share
amounts)
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Per share values
Per share values
Per share values
Per share values
Net Earnings and Net Earnings Per Share
(GAAP)
$
195.1
$
0.55
$
209.0
$
0.59
$
402.5
$
1.13
$
382.6
$
1.07
Pretax amortization of acquisition related
intangible assets and non-cash impairments
113.4
0.32
94.6
0.27
227.1
0.64
187.0
0.52
Pretax acquisition and divestiture related
items
2.1
0.01
—
—
31.7
0.09
—
—
Pretax losses from equity investments
8.6
0.02
7.2
0.02
13.2
0.04
9.1
0.03
Loss from divestiture
25.6
0.07
—
—
25.6
0.07
—
—
Pretax gain on sale of property and
charitable contribution expense
—
—
—
—
(43.1
)
(0.12
)
—
—
Pretax discrete restructuring charges
—
—
10.7
0.03
—
—
28.3
0.08
Tax effect of the adjustments reflected
above (a)
(15.7
)
(0.04
)
(18.4
)
(0.05
)
(32.6
)
(0.09
)
(37.2
)
(0.10
)
Adjusted Net Earnings and Adjusted Net
Earnings Per Share (Non-GAAP)
$
329.1
$
0.93
$
303.1
$
0.85
$
624.4
$
1.76
$
569.8
$
1.60
Average Common Diluted Stock
Outstanding (shares in millions)
354.8
355.5
355.4
356.0
(a) The loss from divestiture had no tax
impact. The tax effect of the adjustments includes all other line
items.
The sum of the components of adjusted
diluted net earnings per share may not equal due to rounding.
Core Revenue Growth (unaudited)
% Change Three Months
Ended
June 28, 2024 vs. Comparable
2023 Period
% Change Six Months
Ended
June 28, 2024 vs. Comparable
2023 Period
Total Revenue Growth (GAAP)
1.7
%
3.0
%
Core (Non-GAAP)
—
%
1.2
%
Acquisitions and divestitures
(Non-GAAP)
2.7
%
2.6
%
Impact of currency translation
(Non-GAAP)
(1.0
)%
(0.8
)%
Free Cash Flow (unaudited)
($ in millions)
Three Months Ended
Six Months Ended
June 28, 2024
June 30, 2023
% Change
June 28, 2024
June 30, 2023
% Change
Operating Cash Flows (GAAP)
$
308.9
$
321.0
(3.8
)%
$
565.6
$
495.4
14.2
%
Less: purchases of property, plant &
equipment (capital expenditures) (GAAP)
(29.2
)
(21.0
)
(55.6
)
(45.8
)
Free Cash Flow (Non-GAAP)
$
279.7
$
300.0
(6.8
)%
$
510.0
$
449.6
13.4
%
Forecasted Adjusted Diluted Net
Earnings Per Share (unaudited)
Three Months Ending
September 27, 2024
Twelve Months Ending
December 31, 2024
Low
High
Low
High
Forecasted Diluted Net Earnings Per
Share (GAAP)
$
0.63
$
0.66
$
2.68
$
2.74
Anticipated pretax amortization of
acquisition related intangible assets
0.32
0.32
1.28
1.28
Anticipated pretax acquisition-related
items
—
—
0.10
0.10
Anticipated pretax losses from equity
investments
0.01
0.01
0.06
0.06
Loss from divestiture
—
—
0.07
0.07
Pretax gain from sale of property and
charitable contribution expense
—
—
(0.12
)
(0.12
)
Tax effect of the adjustments reflected
above
(0.04
)
(0.04
)
(0.27
)
(0.27
)
Forecasted Adjusted Diluted Net
Earnings Per Share (Non-GAAP)
$
0.92
$
0.95
$
3.80
$
3.86
The sum of the components of forecasted
adjusted diluted net earnings per share may not equal due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724407232/en/
Elena Rosman Investor Relations Fortive Corporation 6920 Seaway
Boulevard Everett, WA 98203 Telephone: (425) 446-5000
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