Fortive Corporation (NYSE:FTV) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:30 pm ET


Fortive Corporation (NYSE:FTV) Q4 2018 Earnings Conference Call Transcript


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My name is Ian and I will be your conference facilitator this afternoon. At this time I would like to welcome everyone to the Fortive Corporation's Fourth Quarter 2018 Earning Results Conference Call. (Operator Instructions) I would now like to turn the call over to Mr. Griffin Whitney, Vice President of Investor Relations. Mr. Whitney, you may begin your conference.

Griffin Whitney

Thank you, Ian. Good afternoon, everyone, and thank you for joining us on the call. With us today are Jim Lico, our President and Chief Executive Officer; and Chuck McLaughlin, our Senior Vice President and Chief Financial Officer. We present certain non-GAAP financial measures on today's call. Information required by SEC Regulation G relating to these non-GAAP financial measures are available on the Investors section of our website under the heading Financial Information. A replay of the webcast will be archived on the Investors section of our website later today under the heading Events & Presentations and will remain archived until our next quarterly call.

A replay of the conference call will be available shortly after the conclusion of this call until Friday, February 22, 2019. Instructions for accessing this replay are included in our fourth quarter 2018 earnings press release.

We completed the divestiture of the Automation & Specialty business in the fourth quarter on October 1, 2018, and accordingly have included the results of the A&S business as discontinued operations for current and historical periods. The results presented on this call are based on continuing operations.

During the presentation we will describe certain of the more significant factors that impacted year-over-year performance. All references to period-to-period increases or decreases and financial metrics are year-over-year on a continuing operations basis.

During the call we will make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we expect or anticipate, will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these 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, 2017 and subsequent quarterly reports on Form 10-Q. These forward-looking statements speak only as of the day that they are made and we do not assume any obligation to update any forward-looking statements.

With that, I'd like to turn the call over to Jim.

Jim Lico

Thanks, Griffin, and good afternoon, everyone. Our performance in the fourth quarter provided a strong finish to 2018, capping off another transformational year for Fortive. Looking at the full year, we generated adjusted earnings per share of $3.06 on a continuing operations basis, a 25% increase year-over-year, driven by 4.1% core revenue growth and 35 basis points of core operating margin expansion. The strong top line performance of our core portfolio reflected solid execution against a range of ongoing growth