Fortive Reports Fourth Quarter 2020 Results

Rhea-AI Summary

Fortive Corporation (NYSE: FTV) reported strong fourth quarter results for 2020, with net earnings from continuing operations of $1.25 billion and adjusted net earnings of $252.9 million. The company experienced a 4.9% year-over-year revenue increase, totaling $1.3 billion, driven by 0.7% core revenue growth. Adjusted diluted net earnings per share rose by 19% year-over-year to $0.70. Looking ahead, Fortive anticipates first quarter 2021 diluted net earnings per share between $0.18 and $0.22.

Positive

• Net earnings from continuing operations were $1.25 billion.
• Adjusted diluted net earnings per share increased 19% year-over-year to $0.70.
• Revenue increased 4.9% year-over-year to $1.3 billion, exceeding guidance.
• Free cash flow improved by 39% year-over-year.
• Successful strategic initiatives, leading to core operating margin expansion.

Negative

• None.

Fortive Corporation (“Fortive”) (NYSE: FTV) today announced results for the fourth quarter 2020.

For the fourth quarter ended December 31, 2020, net earnings from continuing operations were $1.25 billion. For the same period, adjusted net earnings from continuing operations were $252.9 million. Diluted net earnings per share from continuing operations for the fourth quarter ended December 31, 2020 were $3.47. For the same period, adjusted diluted net earnings per share from continuing operations were $0.70.

For the fourth quarter of 2020, revenues from continuing operations increased 4.9% year-over-year to $1.3 billion, which reflected core revenue growth of 0.7%.

James A. Lico, President and Chief Executive Officer, stated, “We are pleased to announce our fourth quarter results which represented a strong finish to 2020. This performance highlighted the benefits of our transformation efforts and demonstrated the increased resilience of our portfolio. In addition to a 19% year-over-year increase in adjusted diluted net earnings per share, we saw continued sequential improvement in top-line performance resulting in total revenue growth of 4.9%, which was above the high end of our guidance, and a return to positive core growth. Through the application of the Fortive Business System, we also drove strong core operating margin expansion and a 39% year-over-year increase in free cash flow.”

For the first quarter of 2021, Fortive anticipates diluted net earnings per share from continuing operations to be in the range of $0.18 to $0.22 and adjusted diluted net earnings per share from continuing operations to be in the range of $0.56 to $0.60. For the full year 2021, Fortive anticipates diluted net earnings per share from continuing operations to be in the range of $1.37 to $1.52 and adjusted diluted net earnings per share from continuing operations to be in the range of $2.40 to $2.55.

Mr. Lico added, “In 2020 we made substantial progress across a range of strategic imperatives, despite the challenging environment. Although we are mindful of continued near-term uncertainty, we are in a strong position to build on the progress we have made, and we are optimistic about our ability to continue to invest in innovation to accelerate growth across our portfolio and deliver increasing value for all our stakeholders.”

Fortive will discuss results and outlook during its quarterly investor conference call today starting at 5:30 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 and will remain available until the next quarterly earnings call.

The conference call can be accessed by dialing 833-900-2302 within the U.S. or by dialing 236-714-2716 outside the U.S. a few minutes before 5:30 p.m. ET and notifying the operator that you are dialing in for Fortive’s earnings conference call (access code 5897681). A replay of the conference call will be available two hours after the completion of the call until Thursday, February 18, 2021. Once available, you can access the conference call replay by dialing 800-585-8367 within the U.S. or 416-621-4642 outside the U.S. (access code 5897681) or visit the “Investors” section of the website under “Events & Presentations.”

ABOUT FORTIVE

Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. The company holds leading positions in intelligent operating solutions, precision technologies, and advanced healthcare solutions. Fortive is headquartered in Everett, Washington and employs a team of more than 17,000 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.

VONTIER SEPARATION

On October 9, 2020 (the “Distribution Date”), Fortive completed the separation of its prior Industrial Technologies segment by distributing 80.1% of the outstanding shares of Vontier Corporation (“Vontier”), the entity incorporated to hold such businesses, to Fortive stockholders (the “Separation”) on a pro rata basis.

As the Separation occurred during the fourth fiscal quarter of 2020, Fortive has classified Vontier as a discontinued operation in its financial statements for all periods.

DIVESTITURE OF THE A&S BUSINESS

On October 1, 2018, Fortive completed the previously announced split-off of four of our operating companies (the “A&S Business”) and the operating

FAQ

What were Fortive's Q4 2020 earnings results?

For Q4 2020, Fortive reported net earnings from continuing operations of $1.25 billion and adjusted net earnings of $252.9 million.

What was Fortive's revenue growth in Q4 2020?

Fortive's revenue grew by 4.9% year-over-year, reaching $1.3 billion.

What is the adjusted diluted net earnings per share for Fortive in Q4 2020?

The adjusted diluted net earnings per share for Fortive in Q4 2020 was $0.70.

What are Fortive's earnings projections for Q1 2021?

Fortive projects diluted net earnings per share for Q1 2021 to be between $0.18 and $0.22.

What strategic progress did Fortive make in 2020?

Fortive made substantial progress in strategic initiatives, demonstrating improved resilience and core margin expansion.