Business Performance on Track; Quarter Ahead of Company's Expectations
Second quarter highlights, year-over-year
- Sales increased 3.7 percent to $35.8 billion, up 4.1 percent on a constant currency basis
- Operating income decreased 18.7 percent to $1.2 billion; Adjusted operating income decreased 12.0 percent to $1.7 billion, on both a reported and constant currency basis
- EPS decreased 14.0 percent to $1.07; Adjusted EPS decreased 7.3 percent to $1.52, on both a reported and constant currency basis
Year-to-date highlights
- Net cash provided by operating activities in the first half of fiscal 2020 was $2.5 billion, an increase of $1.3 billion compared with the same period a year ago; Free cash flow was $1.8 billion, an increase of $1.4 billion
Fiscal 2020 outlook
- Prior to the COVID-19 pandemic, the company was on track to maintain fiscal 2020 guidance of roughly flat growth in adjusted EPS, at constant currency rates, plus or minus 3 percent
- Future impacts of COVID-19 uncertain; updates will be provided in the next earnings report
Transformational Cost Management Program
- Company on target to deliver in excess of $1.8 billion in annual cost savings by fiscal 2022
Some of our proudest achievements from this quarter are highlighted in this video: