Emerson Electric Co. (NYSE:EMR) Q1 2024 Earnings Call Transcript

Lal Karsanbhai: No, nothing really different. Look, the profitability certainly varies between MRO and project activity, but that’s well known. I think you know that well. But in terms of the mix within the funnel, there’s not really a significant difference between a growth platform and traditional project work there. Of course, we have a $150 billion installed base around the world. And with that, some of that is obtained through and managed through service contracts, a large portion of it, where we have commitments for replacement and maintenance with many of our global customers. And others are upgrades, activities and things of that sort.

Brett Linzey: Okay. Great. And then just shifting to price/cost, I think the original guide was about 2 points. You had 2 points in the quarter. Has the expectation changed at all for the year? And then any movement on material or non-material inflation that is shifting expectations at all on the cost side?

Ram Krishnan: No, price is 2 points in the quarter, 2 points for the year. We feel good, no change there. In terms of our net material inflation, I think we’re seeing continued opportunities that we’re driving on the direct material side. The logistics costs have come down. We don’t see any impact in terms of inflation or it’s de minimis from the dynamics around what’s going on with — in the Red Sea or the Panama Canal. So we see NMI or net material inflation continuing to improve as we go through the year.

Brett Linzey: Okay, great. Appreciate the insights. Best of luck.

Operator: This concludes our question-and-answer session, and the conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.