“This impact is expected to be fully covered by the price actions we implemented in Q2.”

In context

“all the financial metrics on Slide 9. We are raising organic growth expectations from 3% to greater than 3.5% for the year. This is a result of strong commercial momentum in our industrial businesses supported by increased sales contribution from new product launches which will more than offset the slight weakness in consumer business. EPS guidance is increasing from a range of $8.50 to $8.70 to $8.80 to $8.95, a growth of 9% to 11% year over year. This increases both the low and high end of the guidance and reflects about a $0.27 increase at the midpoint. The increase in earnings versus the prior guidance is coming from stronger sales growth, productivity gains and our capital deployment strategy. We now estimate oil inflation $150 million to $175 million up from $125 million previously. This impact is expected to be fully covered by the price actions we implemented in Q2. Though oil price cost is dollar neutral, it impacts margin rate by 20 basis points which we will mitigate through higher volume and better productivity resulting in operating margin expansion in line with our prior expectations. Given the higher earnings growth, and progress in working capital, we have increased our free cash flow guidance by $100 million to a $4.7 billion to $4.9 billion implying conversion greater than 100%. The updated guidance implies second half organic sales growth of high-3s or better over 2x macro and margin expansion of about 100 basis points from the prior year resulting in EPS growth of approximately $0.30 at the midpoint. Sequentially, we expect operating profit to follow typical seasonality with similar phasing between the halves while earnings will see an im”