Summary
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.
Key Highlights
- 1Total sales reached $5.0 billion, a 13% increase year-over-year, driven by broad-based demand.
- 2Control Systems segment sales grew 13% to $4.1 billion, with significant strength in the Logix platform.
- 3Power Systems segment sales increased 17% to $0.9 billion, benefiting from demand in heavy industries.
- 4Income from continuing operations grew 46% to $518.4 million.
- 5Diluted earnings per share (EPS) from continuing operations were $2.77, up from $1.85 in the prior year.
- 6Free cash flow generation was strong at $514.8 million.
- 7The company provided a positive outlook for fiscal year 2006, expecting 7-9% revenue growth and EPS between $3.00 and $3.10.