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ROK · Rockwell Automation

25 filings

10-K

ROK 10-K Annual Reports

Rockwell Automation - 25 annual reports

Filing record · 2016–202610-K1010-Q338-K110

2025
Rockwell Automation Annual Report, Year Ended Sep 30, 2025
Rockwell Automation, Inc. reported modest sales growth of 1% for fiscal year 2025, primarily driven by pricing increases, while volume saw a slight decrease. The company experienced a decline in net income attributable to Rockwell Automation to $869 million from $953 million in the prior year, impacting diluted EPS to $7.67 from $8.28. However, Adjusted EPS saw a positive increase of 7% to $10.53, indicating operational improvements outside of certain charges. A significant factor influencing net income was a $224 million non-cash impairment charge related to the Sensia joint venture and a change in accounting for legacy asbestos liabilities. The Lifecycle Services segment's operating margin decreased, while the Software & Control segment showed strong margin expansion. Financially, the company demonstrated robust free cash flow generation of $1,358 million, a substantial increase from $639 million in the previous year, allowing for continued share repurchases and dividends. The company maintains a strong liquidity position with an undrawn revolving credit facility. Looking ahead, Rockwell Automation plans significant investments to support market share growth and operational resilience.
Nov 12, 2025
2024
Rockwell Automation Annual Report, Year Ended Sep 30, 2024
Rockwell Automation, Inc. (ROK) reported a decrease in sales for the fiscal year ended September 30, 2024, with total sales declining by 9% compared to the previous year. This downturn was driven by a significant 24% decrease in the Software & Control segment and a 7% decrease in the Intelligent Devices segment, partially offset by a 10% increase in the Lifecycle Services segment. Despite the sales challenges, the company continued to focus on its long-term strategy of industrial automation and digital transformation, aiming to enhance customer resilience, agility, and sustainability. The company's financial performance was impacted by macroeconomic factors and a shift in customer spending. While the company executed cost-optimization initiatives, including restructuring charges, the overall profitability decreased. Adjusted EPS fell to $9.71 from $12.12 in the prior year. However, Rockwell Automation maintained a strong commitment to returning capital to shareholders, with significant share repurchases during the period. The company also highlighted its ongoing investments in technology innovation and its strong talent management practices as key drivers for future growth.
Nov 12, 2024
2023
Rockwell Automation Annual Report, Year Ended Sep 30, 2023
Rockwell Automation, Inc. (ROK) reported strong performance in its fiscal year 2023, with total sales increasing by 16.7% to $9.06 billion. This growth was driven by broad-based demand across its three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. The company also saw significant growth in its annual recurring revenue (ARR), up approximately 16%. Despite a goodwill impairment charge of $157.5 million related to its Sensia joint venture, net income attributable to Rockwell Automation increased to $1.39 billion, and diluted Earnings Per Share (EPS) rose to $11.95, up from $7.97 in the prior year. Adjusted EPS showed a similar upward trend, increasing by 27.7% to $12.12. The company's strategy focuses on expanding human possibility and creating the future of industrial operations through its 'Connected Enterprise' vision, leveraging megatrends like digitization, AI, and sustainability. Management highlighted investments in technology innovation, domain expertise, and market expansion, particularly in Asia Pacific and EMEA, as key drivers for future profitable growth. The company also continued its share repurchase program, demonstrating a commitment to returning capital to shareholders.
Nov 8, 2023
2022
Rockwell Automation Annual Report, Year Ended Sep 30, 2022
Rockwell Automation, Inc. (ROK) reported a strong fiscal year 2022, with total sales increasing by 10.9% to $7.76 billion. The company's performance was driven by robust demand across its segments, particularly in Intelligent Devices and Software & Control, with organic sales growth of 11.3%. This growth was supported by strategic acquisitions and a focus on integrating advanced industrial automation with information technology to deliver customer value. Despite facing supply chain pressures and increased input costs, Rockwell Automation demonstrated resilience through pricing actions and cost productivity initiatives. The company highlights its strategic focus on driving organic sales growth above the automation market, expanding its recurring revenue streams, and enhancing market access through its partner network. Management provided positive outlook guidance for fiscal year 2023, anticipating continued sales growth and earnings per share improvement, supported by a record order backlog. Key risks identified include macroeconomic volatility, supply chain disruptions, and cybersecurity threats, which the company actively manages through its Enterprise Risk Management process. Investors should note the significant impact of the change in fair value of its investment in PTC Inc. on reported earnings.
Nov 8, 2022
2021
Rockwell Automation Annual Report, Year Ended Sep 30, 2021
Rockwell Automation, Inc. (ROK) demonstrated a strong recovery in fiscal year 2021, with total sales increasing by 10.5% year-over-year to $6,997.4 million. This growth was driven by broad-based demand across its three operating segments: Intelligent Devices, Software & Control, and Lifecycle Services. The company's strategic focus on digital transformation and industrial automation is evident in its performance, with notable acquisitions like Plex Systems and Fiix Inc. bolstering its software and connected services offerings. Despite facing supply chain challenges and inflationary pressures, Rockwell Automation's outlook for fiscal year 2022 remains positive, with guidance for reported sales growth between 16%-19% and Adjusted EPS between $10.50-$11.10. The company is actively managing its supply chain and investing in technology to maintain its competitive edge. Furthermore, Rockwell Automation continues to prioritize shareholder returns, evidenced by its share repurchase program and consistent dividend payments, underscoring its commitment to creating long-term shareholder value.
Nov 9, 2021
2020
Rockwell Automation Annual Report, Year Ended Sep 30, 2020
Rockwell Automation, Inc. reported total sales of $6.33 billion for fiscal year 2020, a decrease of 5.5% compared to fiscal year 2019, with organic sales down 7.8%. This decline was attributed to broad regional weakness, particularly in the Oil & Gas sector, and the ongoing impacts of the COVID-19 pandemic which affected customer spending and supply chains. Despite the sales dip, the company demonstrated resilience with net income attributable to Rockwell Automation increasing to $1.02 billion from $696 million in the prior year, largely due to favorable fair-value adjustments related to its investment in PTC Inc. Adjusted EPS, a key performance metric, decreased to $7.68 from $8.67 in fiscal 2019, reflecting the challenging operating environment. The company generated strong free cash flow of $1.01 billion, underscoring its operational efficiency and financial health. Rockwell Automation also continued its strategic acquisition efforts, acquiring several companies to enhance its digital transformation and cybersecurity capabilities, positioning itself for future growth.
Nov 10, 2020
2019
Rockwell Automation Annual Report, Year Ended Sep 30, 2019
Rockwell Automation, Inc. reported stable sales of $6.7 billion for the fiscal year ended September 29, 2019, marking a slight 0.4% increase year-over-year, with organic sales growing by 2.8%. The company operates through two key segments: Architecture & Software and Control Products & Solutions, serving diverse industries including automotive, food & beverage, and oil & gas. The company's strategic focus remains on integrating industrial automation with information technology to drive digital transformation for its customers. Key growth initiatives include expanding its market reach in emerging economies and strengthening its information solutions and connected services. Despite a challenging macroeconomic environment marked by slowing global growth and trade tensions, Rockwell Automation demonstrated resilience through its diversified end-market exposure and geographic footprint. The company's financial performance was impacted by a significant loss on investments, particularly its stake in PTC Inc., which affected reported net income but not the underlying operational performance of its core business. Looking ahead, Rockwell Automation is investing in strategic acquisitions, such as Emulate3D, to enhance its digital simulation capabilities. The company continues to prioritize productivity initiatives, cost management, and innovation to maintain its competitive edge in the industrial automation market. The company also announced the formation of a joint venture, Sensia, with Schlumberger to focus on digital oilfield automation solutions, signaling a strategic move into specialized market segments.
Nov 12, 2019
2018
Rockwell Automation Annual Report, Year Ended Sep 30, 2018
Rockwell Automation, Inc. (ROK) reported strong sales growth in fiscal year 2018, with total sales increasing by 5.6% to $6.67 billion, driven by a broad-based demand across its key industries. The company's strategic focus on "The Connected Enterprise" and investments in technology innovation, including its alliance with PTC, continue to be key drivers of growth. The Architecture & Software segment showed particularly robust performance with a 6.9% sales increase and improved operating margin. The company demonstrated solid financial health, with a significant increase in free cash flow to $1.17 billion. ROK also actively returned capital to shareholders through share repurchases totaling $1.5 billion. Management highlighted positive industrial economic trends in the U.S. and favorable, though moderating, trends in non-U.S. markets. Despite facing various macroeconomic and operational risks, Rockwell Automation appears well-positioned for continued growth, supported by its technological differentiation and global expansion efforts.
Nov 9, 2018
2017
Rockwell Automation Annual Report, Year Ended Sep 30, 2017
Rockwell Automation, Inc. (ROK) reported a solid performance for the fiscal year ending September 30, 2017, with total sales reaching $6.31 billion, a 7.3% increase year-over-year. This growth was driven by a 6.1% increase in organic sales, supported by contributions from acquisitions and favorable currency translation. The company's strategic focus on "The Connected Enterprise" appears to be resonating, with its Architecture & Software segment showing robust growth, up 10% in sales. The Control Products & Solutions segment also saw an increase in sales, albeit at a slower pace. Management highlighted the importance of technology innovation, global expansion, and channel partnerships in driving future growth. Despite a challenging global economic environment, Rockwell Automation's broad industry diversification and strategic acquisitions are positioning it for continued success. Investors can appreciate the company's commitment to returning value through dividends and share repurchases, supported by strong free cash flow generation.
Nov 15, 2017
2016
Rockwell Automation Annual Report, Year Ended Sep 30, 2016
Rockwell Automation, Inc.'s 2016 10-K report details a challenging fiscal year marked by a sales decline of 6.8% to $5.88 billion, primarily driven by weakness in heavy industries like oil and gas and mining, which more than offset growth in consumer and automotive sectors. Despite these headwinds, the company maintained strong segment operating margins above 20% through effective cost productivity initiatives. The company's strategy continues to focus on organic sales growth, diversification, market share expansion, and strategic acquisitions, having completed several acquisitions in 2016 to enhance its capabilities in systems integration, software solutions, and intelligent conveying systems. Financially, Rockwell Automation demonstrated resilience, with free cash flow of $833.7 million in 2016. The company also returned significant value to shareholders through $500.2 million in share repurchases and $378.2 million in dividends paid. While the report highlights a decrease in reported sales, the underlying drivers of the business, such as the Architecture & Software segment's focus on integrated control and information, and the Control Products & Solutions segment's core competencies, remain central to the company's long-term value proposition. Key risks identified include macroeconomic volatility, global economic instability, and cybersecurity threats.
Nov 15, 2016
2015
Rockwell Automation Annual Report, Year Ended Sep 30, 2015
Rockwell Automation, Inc. (ROK) reported total sales of $6.3 billion for the fiscal year ended September 29, 2015, a decrease of 4.8% compared to the previous year. This decline was primarily attributed to currency translation impacts and headwinds from heavy industries, particularly oil and gas, although modest organic sales growth of 1.1% was achieved, driven by consumer and automotive sectors. The company maintained strong segment operating margins, which improved by over one percentage point, supported by productivity gains. Financially, ROK demonstrated robust cash flow generation, with operating activities providing $1.19 billion and free cash flow reaching $1.08 billion, an increase from the prior year driven by improved working capital management. The company continued its commitment to returning capital to shareholders through dividends and share repurchases, with $350 million paid in dividends and $606 million used for share repurchases during the fiscal year. The company's long-term strategy focuses on organic sales growth exceeding the automation market, diversification, market share expansion, and strengthening its technology leadership and global presence, particularly in emerging markets.
Nov 17, 2015
2014
Rockwell Automation Annual Report, Year Ended Sep 30, 2014
Rockwell Automation, Inc. (ROK) in its 2014 10-K filing reported solid performance with record sales of $6.62 billion, an increase of 4.3% year-over-year, driven by organic sales growth of 5.1%. The company operates through two segments: Architecture & Software and Control Products & Solutions, with the latter generating higher sales. Geographically, the United States remains the largest market, accounting for 52% of total sales. The company demonstrated strong operational execution, expanding segment operating margin and generating substantial free cash flow of $922.2 million. Investments in technology innovation and global expansion, particularly in emerging markets, are key strategic priorities. Looking ahead, Rockwell Automation aims for continued growth through market expansion, product diversification, and strategic acquisitions, projecting sales growth of 6-8% and double-digit EPS growth. The company's financial condition appears stable, supported by a revolving credit facility and consistent dividend payments. However, investors should note potential risks including macroeconomic volatility, currency fluctuations, competitive pressures, and cybersecurity threats, which are actively managed through their Enterprise Risk Management process.
Nov 18, 2014
2013
Rockwell Automation Annual Report, Year Ended Sep 30, 2013
Rockwell Automation, Inc. (ROK) reported record sales of $6.35 billion for the fiscal year ended September 29, 2013, an increase of 1.5% from the previous year. The company operates through two segments: Architecture & Software and Control Products & Solutions. While overall sales showed modest growth, the company achieved this in a sluggish market environment by expanding its segment operating margin. The U.S. market accounted for 50% of total sales, with international sales making up the other half, spread across various regions including Canada, China, the UK, Italy, Mexico, Germany, and Brazil. The company highlighted its long-term strategy focused on achieving growth exceeding the automation market, diversifying sales streams, and enhancing market access through technology innovation and domain expertise. Investments in emerging markets and strengthening its global footprint are key components of this strategy. ROK also emphasized its commitment to cost productivity and continuous improvement initiatives to offset inflation and fund growth investments.
Nov 18, 2013
2012
Rockwell Automation Annual Report, Year Ended Sep 30, 2012
Rockwell Automation, Inc. (ROK) reported total sales of $6.26 billion for the fiscal year ending September 29, 2012, representing a 4% increase over the previous year, or 6% on an organic basis. The company's performance was driven by growth in the transportation and oil & gas sectors, and continued execution of its 'process initiative' and global expansion strategies. The Architecture & Software segment generated $2.65 billion in sales, while the Control Products & Solutions segment reported $3.61 billion. Despite a challenging economic environment, Rockwell Automation demonstrated robust operational performance with expanded segment operating margins and solid income from continuing operations of $737.0 million, or $5.13 per diluted share. The company maintained a strong balance sheet and generated $597.6 million in free cash flow, allowing for continued investment in growth opportunities, a 11% increase in quarterly dividends, and a significant share repurchase program. Key risks highlighted include macroeconomic volatility, currency fluctuations, competition, and cybersecurity threats. However, the company's diversified product portfolio, global presence, and focus on technology leadership position it to navigate these challenges and pursue long-term growth.
Nov 19, 2012
2011
Rockwell Automation Annual Report, Year Ended Sep 30, 2011
Rockwell Automation (ROK) closed fiscal 2011 (year ended September 30, 2011) with a strong rebound in results. Sales rose 24% to $6.0 billion, driven by volume recovery across both segments, with organic sales up roughly 20% and emerging markets up 31%. Income from continuing operations more than doubled... actually rose 58% pre-tax to $867.6 million, and diluted EPS from continuing operations increased to $4.79 from $3.05. Operating leverage was visible: SG&A fell to 24.4% of sales from 27.2%, and the Architecture & Software segment margin expanded to 25.4% while Control Products & Solutions improved to 10.8%. Balance sheet and cash generation were solid. Free cash flow (a non-GAAP measure that adds back the excess tax benefit from share-based compensation) was $561.7 million, up from $410.7 million, though it includes a $150 million discretionary U.S. pension contribution in both 2011 and 2010. Total debt was stable at about $905 million of long-term notes, with no commercial paper outstanding at year-end. Debt-to-total-capital fell to 34.1% from 38.3%, and shareowners' equity rose to $1.75 billion. The company returned capital through $211 million in dividends (raised 21% to a $1.70 annualized rate) and roughly $299 million in buybacks. In October 2011, it made a $300 million pension contribution, partly funded with $275 million of commercial paper, which will weigh on near-term cash. Key risks for investors include the cyclical nature of industrial capital spending, sovereign debt concerns in Europe, growing pension and retiree health liabilities (the retirement benefits liability rose to $1.06 billion), asbestos and environmental exposures, and dependence on distributors (about 70% of global sales flow through independent distributors). Management's outlook remains cautiously optimistic about a continued but potentially slower and more uneven recovery into fiscal 2012, with long-term targets of 6-8% revenue growth, double-digit EPS growth, and 60% of revenue outside the U.S.
Nov 14, 2011
2010
Rockwell Automation Annual Report, Year Ended Sep 30, 2010
Rockwell Automation (ROK) reported a strong fiscal 2010 rebound after the 2009 recession. Sales rose 12% to $4.86 billion, with organic growth of 10% and a 2-point currency benefit. Income from continuing operations more than doubled to $440.4 million, and diluted EPS from continuing operations rose to $3.05 from $1.53. Gross margin expanded 3.7 points to 39.9%, helped by volume recovery, roughly $120 million of savings from 2009 restructuring, and a favorable mix shift toward the higher-margin Architecture & Software segment, whose operating margin climbed to 22.5%. Cash generation and balance sheet items were mixed. Operating cash flow fell to $494.0 million and free cash flow declined to $410.7 million, mainly because of a discretionary $150 million U.S. pension contribution and a working capital build in inventory and receivables. Shareholders received $173.6 million in dividends, and the company repurchased about $120 million of stock. The board raised the quarterly dividend 21% to $0.35, and about $501 million remained under the buyback authorization. Commercial paper was undrawn, $567.5 million of revolving credit capacity was available, and the company was rated A/A3/A. Key risks include pension expense rising to an expected $90.9 million in 2011, the ongoing DOJ claim over the McGregor, Texas environmental site (cleanup costs above $50 million, with no exposure estimate given), asbestos litigation, an open SEC negotiation over Foreign Corrupt Practices Act matters, and heavy dependence on distributors, which handle about 90% of U.S. and Canadian sales. Management expects 2011 capital expenditures of about $120 million and continued revenue growth against its 6-8% long-term target.
Nov 18, 2010
2009
Rockwell Automation Annual Report, Year Ended Sep 30, 2009
Rockwell Automation's fiscal 2009 (year ended September 30, 2009) was a sharply down year driven by the global recession. Sales fell 24% to $4.33 billion from $5.70 billion, with organic sales down 19%, and income from continuing operations dropped 62% to $217.9 million, or $1.53 per diluted share versus $3.90 in 2008. Restructuring charges of $60.4 million ($0.29 per diluted share) weighed on results, and the segment operating margin fell to 12.9% in Architecture & Software and 7.9% in Control Products & Solutions. Management said demand in the products business stabilized in the latter part of the year and that sales grew sequentially in the fourth quarter, but it described the manufacturing investment outlook as uncertain. Balance sheet and cash flow remained a relative bright spot. Operating cash flow was $526.4 million and free cash flow was $430.8 million, supported by inventory reduction and working capital releases. Cash rose to $643.8 million and there was no commercial paper outstanding. Shareowners' equity fell to $1.32 billion from $1.69 billion, largely because of a $360 million pension-related hit to other comprehensive income. Retirement benefit liabilities rose to $849 million. The debt-to-total-capital ratio increased to 40.7% from 37.3%. Share repurchases were minimal ($50 million, all in October 2008), with $621 million left on the authorization. The $0.29 quarterly dividend was maintained. Investors should weigh the cyclical trough against the risks the filing flags: a pension funding and expense increase (estimated 2010 pension expense of $71.2 million, up about $38.5 million), credit rating outlooks that are negative at S&P and Fitch, ongoing legacy litigation (Rocky Flats, the McGregor NWIRP claim, asbestos, and an FCPA investigation), and an ERP rollout that continues through 2013.
Nov 18, 2009
2008
Rockwell Automation Annual Report, Year Ended Sep 30, 2008
Rockwell Automation, Inc. (ROK) reported strong performance for the fiscal year ended September 30, 2008, with total sales reaching $5.7 billion, a 14% increase over the previous year. This growth was driven by a 6% organic sales increase, complemented by favorable currency translations and strategic acquisitions. The company's global expansion efforts are evident, with approximately 50% of sales generated outside the U.S., particularly strong growth in the Asia-Pacific and Latin America regions. The company's two primary operating segments, Architecture & Software and Control Products & Solutions, both contributed positively to sales, with Architecture & Software sales up 9% and Control Products & Solutions up 18%. Despite increased investment in growth and technology, and the impact of acquisitions, Rockwell Automation managed its expenses effectively, leading to a 9% increase in income from continuing operations year-over-year. The company also continued its commitment to shareholder returns through consistent dividend payments and share repurchases.
Nov 21, 2008
2007
Rockwell Automation Annual Report, Year Ended Sep 30, 2007
Rockwell Automation, Inc. (ROK) reported strong performance in its fiscal year ended September 30, 2007, driven by a 10% increase in sales, reaching $5.0 billion. This growth was primarily fueled by robust international demand, particularly in Europe and Latin America, which saw organic sales increases of 14% and 19% respectively. The company's strategic divestiture of its Dodge and Reliance Electric motor businesses generated a significant after-tax gain of $868.2 million. Financially, Rockwell Automation demonstrated improved profitability, with income from continuing operations increasing by 8% over the prior year. The company also managed its cash flow effectively, generating $531.0 million in free cash flow, which supported substantial share repurchases totaling approximately 23.8 million shares. The company maintained a healthy balance sheet with a debt-to-total-capital ratio of 34.7% and continued to return value to shareholders through dividends. Looking ahead, Rockwell Automation expressed optimism for fiscal year 2008, projecting revenue growth of 10-12% and continued expansion in emerging markets.
Nov 19, 2007
2006
Rockwell Automation Annual Report, Year Ended Sep 30, 2006
Rockwell Automation, Inc. (ROK) reported strong growth in fiscal year 2006, with total sales reaching $5.6 billion, an 11% increase year-over-year. The company's Control Systems segment, its largest, saw a 10% sales increase, driven by strong performance in the Americas and Asia-Pacific, despite a slowdown in the North American automotive market. The Power Systems segment also performed well, with a 15% sales increase, benefiting from higher energy and commodity prices fueling customer investments in capacity expansion. Financially, the company demonstrated robust earnings from continuing operations, and successfully managed its debt, maintaining a healthy debt-to-total-capital ratio. Rockwell Automation also actively engaged in share repurchases, signaling confidence in its financial health and commitment to returning value to shareholders. A significant event noted is the announced divestiture of the Power Systems segment (Dodge mechanical and Reliance Electric motors and motor repair services businesses) for $1.8 billion, which is expected to close in the second quarter of fiscal 2007. This strategic move indicates a focus on optimizing the company's portfolio and reinvesting proceeds for future growth.
Nov 9, 2006
2005
Rockwell Automation Annual Report, Year Ended Sep 30, 2005
Rockwell Automation, Inc. (ROK) reported total sales of $5.0 billion for the fiscal year ended September 29, 2005, a 13% increase over the prior year, driven by strong performance in both its Control Systems and Power Systems segments. The company experienced robust growth across most industries served, particularly in emerging economies within the Asia-Pacific and Latin American regions. Control Systems, its largest segment, saw sales rise 13%, bolstered by its Logix platform and intelligent motor control products. Power Systems also grew significantly, up 17%, driven by demand in heavy industries like mining and oil & gas. Financially, Rockwell Automation demonstrated solid operational execution, with income from continuing operations increasing by 46% to $518.4 million, translating to diluted earnings per share of $2.77. The company's financial condition remained strong, with free cash flow generation of $514.8 million. Key initiatives for 2006 include continued focus on the Logix platform, geographic expansion, and cost productivity. The company projects 7-9% revenue growth and diluted EPS in the range of $3.00 to $3.10 for fiscal year 2006, assuming a favorable economic environment.
Nov 10, 2005
2004
Rockwell Automation Annual Report, Year Ended Sep 30, 2004
Rockwell Automation, Inc. (ROK) reported strong financial performance for the fiscal year ended September 30, 2004, with total sales reaching $4.41 billion, a 10% increase from the prior year. This growth was primarily driven by the Control Systems segment, which accounted for 83% of total sales and saw an 11% increase, benefiting from a recovery in industrial demand and increased capital spending by manufacturers. The Power Systems segment also contributed positively with a 7% sales increase. Key financial highlights include a significant improvement in income from continuing operations, which rose to $354.1 million, up from $281.4 million in the prior year. Diluted earnings per share (EPS) from continuing operations increased to $1.85 from $1.48. The company also generated strong free cash flow of $498.9 million, demonstrating its ability to convert operational performance into cash. Rockwell Automation continued its commitment to shareholder returns through dividends and share repurchases, indicating a healthy financial position and a positive outlook for the upcoming fiscal year.
Nov 19, 2004
2003
Rockwell Automation Annual Report, Year Ended Sep 30, 2003
Rockwell Automation, Inc. (ROK) reported total sales of $4.1 billion for the fiscal year ended September 30, 2003. The company operates through three main segments: Control Systems, Power Systems, and FirstPoint Contact. The Control Systems segment is the largest, contributing approximately 80% of total sales, and offers industrial automation products, systems, software, and services. Financially, the company demonstrated improved profitability compared to the prior year, with income from continuing operations before accounting change increasing to $282 million ($1.49 per diluted share) from $226 million ($1.20 per diluted share) in 2002. Net income for fiscal 2003 was $286 million. The company's cash flow from operations remained strong at $436 million, and it maintained a solid balance sheet with total assets of $3.986 billion and total shareowners' equity of $1.587 billion. The company also repurchased approximately $128 million of its common stock during the year. Rockwell Automation's outlook for fiscal 2004 is optimistic, with management forecasting mid-single-digit revenue growth and diluted earnings per share in the range of $1.35 to $1.45, reflecting signs of emerging upward trends in customer demand across its markets.
Dec 3, 2003
2002
Rockwell Automation Annual Report, Year Ended Sep 30, 2002
Rockwell Automation's fiscal 2002 10-K (year ended September 30, 2002) shows a company working through a prolonged industrial downturn while protecting cash generation and earnings. Sales fell 9% to $3,909 million from $4,285 million, driven mainly by depressed automation demand, with Control Systems (79% of sales) down about 8%. Income from continuing operations before the accounting change rose to $226 million, or $1.20 per diluted share, from $125 million, but that improvement was helped by a $48 million tax benefit from resolving 1995-1999 tax matters. Reported net income fell to $121 million ($0.64 per diluted share) after a $108 million after-tax cumulative effect charge from adopting SFAS 142, which covered goodwill and trademark impairments. Cash flow and the balance sheet were the strongest parts of the report. Operating cash flow rose to $476 million and free cash flow to $372 million, up from $178 million, mainly on working capital gains and lower capital spending. Shareowners' equity held at $1,609 million, the debt-to-capital ratio was 36.6%, and the company had no commercial paper outstanding at year end. Management guided to first-quarter EPS of $0.16 to $0.18 and full-year fiscal 2003 EPS of at least $1.05 (15% growth), or $1.15 if business conditions improve modestly. Dividends were held at $0.66 per share, and the company expected to repay a $150 million note due April 2003. For investors, the central question is whether the cost actions and tax-driven earnings support can deliver the guided growth while the manufacturing economy remains weak. The filing also notes that the stock price excludes the value of the Rockwell Collins shares distributed in the 2001 spinoff, and that the company faces long-running legacy litigation tied to its former Rocky Flats, Hanford, and Russellville operations, although management does not expect material adverse outcomes.
Nov 25, 2002
1996
Rockwell Automation Annual Report, Year Ended Sep 30, 1996
Rockwell's fiscal 1996 10-K (year ended September 30, 1996) describes a company reshaped by two major transactions completed in late 1996. On December 6, 1996, it divested its Aerospace & Defense business to Boeing (about $3.2 billion including $2.3 billion of liabilities assumed) and spun off the remaining operations as a new company that kept the Rockwell name. Graphic Systems was sold for about $600 million in October 1996. The continuing businesses are now predominantly electronics: Electronics generated 70% of sales and 83% of operating earnings. Continuing sales rose 14% to $10.4 billion, and income from continuing operations was $555 million, or $2.55 per share. Excluding a $121 million Brooktree purchased R&D charge (56 cents per share), income was $676 million, or $3.11 per share, up 37%. Growth was led by Automation (industrial automation, $4.2 billion in sales, up 16%) and Semiconductor Systems (modem chipsets, up 82% to $1.6 billion, with a 21% return on sales). Automotive was roughly flat at $3.1 billion, and Avionics & Communications was flat with earnings down 8%. The balance sheet was transformed: management reports an 11% debt-to-capital ratio excluding $2.165 billion of debt assumed by Boeing, and year-end cash was about $715 million. Operating cash flow was $1.16 billion, with capital spending of $866 million and dividends of $253 million ($1.16 per share). Management's long-term targets are 8% annual sales growth, 15% annual EPS growth, and a return on equity rising from about 14% to 20% over three years. Investors should weigh the legacy liabilities that remain with the continuing company. These include environmental exposure (31 Superfund sites, with about $112 million accrued against roughly $140 million of reasonably possible costs for other matters), and the Rocky Flats and Hanford nuclear litigation, which management says is indemnified by the DOE. The most significant near-term item is a June 1996 Kentucky judgment of $218 million (including $210 million in punitive damages) for alleged PCB contamination, which the company is contesting. Management considers none of these matters material. The filing also notes that the company filed late, as its 10-K was delayed by the reorganization, and that the 1997 proxy was not yet filed.
Dec 19, 1996