Investor Presentaiton
Business Segment Results of Operations
The following is a discussion of Net sales, operating profit and operating profit margin by business segment.
Electrical Americas
(In millions)
Net sales
Operating profit
Operating margin
Changes in Net sales are summarized as follows:
Organic growth
Acquisition of Tripp Lite
Divestiture of the Lighting business
2022
Change
from 2021
2021
Change
from 2020
2020
$ 8,497
17 % $ 7,242
8 % $ 6,680
$ 1,913
28 % $ 1,495
11 % $ 1,352
22.5 %
20.6 %
20.2 %
2022
2021
16 %
1 %
5 %
7%
%
(4)%
17 %
8%
Total increase in Net sales
The increase in organic sales in 2022 reflects broad-based strength in end-markets, with particular strength in residential,
industrial, and data center end-markets. The increase in organic sales in 2021 was primarily due to broad-based recovery in end-
markets as they had largely recovered from the initial COVID-19 pandemic impact with particular strength in residential and
data centers, partially offset by weakness in sales to utilities.
The operating margin increased from 20.6% in 2021 to 22.5% in 2022 primarily due to higher sales volumes including
inflationary pricing recovery, while headwinds from commodity and logistics inflation and operating inefficiencies due to
supply chain constraints were offset by gains from the sale of certain office and distribution facilities. The operating margin
increased from 20.2% in 2020 to 20.6% in 2021 primarily due to higher organic sales volumes, the favorable net impact of an
acquisition and a divestiture, and savings from restructuring actions. Conversely, commodity and logistics inflation had an
unfavorable impact on the operating margin.
Electrical Global
(In millions)
Net sales
Operating profit
Operating margin
Changes in Net sales are summarized as follows:
Organic growth
Foreign currency
Total increase in Net sales
2022
Change
from 2021
2021
Change
from 2020
$ 5,848
6 % $ 5,516
2020
17% $ 4,703
$ 1,134
10% $ 1,034
38 % $
750
19.4 %
18.7 %
15.9 %
2022
2021
13 %
15 %
(7)%
2%
6%
17 %
The increase in organic sales in 2022 was primarily due to broad-based strength in end-markets, with particular strength in
commercial & institutional and industrial end-markets. The increase in organic sales in 2021 was primarily due to broad-based
strength in end-markets as they had largely recovered from the COVID-19 pandemic.
The operating margin increased from 18.7% in 2021 to 19.4% in 2022 primarily due to higher sales volumes including
inflationary pricing recovery, partially offset by commodity and logistics inflation and operating inefficiencies due to supply
chain constraints. The operating margin increased from 15.9% in 2020 to 18.7% in 2021 primarily due to higher sales volumes
and savings from restructuring actions, partially offset by commodity and logistics inflation.
84View entire presentation