01—Abstract
Summary
Summary of the 10-K filed November 21, 2008. Cited figures are marked; the original filing is the authoritative source.
Rockwell Automation, Inc. (ROK) reported strong performance for the fiscal year ended September 30, 2008, with total sales reaching $5.7 billiona, a 14% increase over the previous year.
This growth was driven by a 6%b 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%c 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.
02—Key points
Key Highlights
- Total sales increased by 14% to $5.7 billion, with a 6% organic sales growth, reflecting robust demand and effective market penetration.
- The company achieved a 50% revenue contribution from non-U.S. customers, highlighting successful global expansion and diversification.
- Architecture & Software segment sales grew by 9%, driven by strong performance in Logix platform sales.
- Control Products & Solutions segment sales saw an 18% increase, bolstered by growth initiatives and strong performance in resource-based end markets.
- Income from continuing operations increased by 9% to $577.6 million, demonstrating effective cost management and operational efficiency.
- The company maintained its commitment to shareholder value by declaring and paying dividends totaling $1.16 per share.
- Strategic acquisitions in 2008, including CEDES, Incuity, and Pavilion, are expected to enhance market share and broaden the company's technology portfolio.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, Rockwell Automation kept $0.10.
- Revenue$5.70B100.0%
- Cost of revenue−$3.36B58.9%
- Gross profit$2.34B41.1%
- Operating costs−$1.76B30.9%
- Operating income$577.6M10.1%
- Interest, other & tax$-00.0%
- Net income$577.6M10.1%
Where FY2008 revenue went
$5.70B- Cost of revenue: $3.36B, 59% of revenue
- SG&A: $1.48B, 26% of revenue
- Net income: $577.6M, 10% of revenue
- R&D: $191.3M, 3.4% of revenue
- Other operating costs: $89.7M, 1.6% of revenue
Kept 10% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2008filed November 21, 2008Financial Statements
FY2008 against FY2007
| Line item | FY2008FY2007 | Change |
|---|---|---|
| Revenue | $5.70B$5.00B | +13.9% |
| Cost of Revenue | $3.36B$2.91B | +15.5% |
| Gross Profit | $2.34B$2.10B | +11.6% |
| R&D Expenses | $191.30M— | — |
| SG&A Expenses | $1.48B$1.28B | +15.9% |
| Operating Income | $577.60M$569.30M | +1.5% |
| Interest Expense | $68.20M$63.40M | +7.6% |
| Net Income | $577.60M$1.49B | −61.2% |
| EPS (Basic) | $3.94$9.37 | −58.0% |
| EPS (Diluted) | $3.89$9.23 | −57.9% |
| Shares Outstanding (Basic) | 146.50M158.70M | −7.7% |
| Shares Outstanding (Diluted) | 148.10M161.20M | −8.1% |
05—Questions
Frequently Asked Questions
What was Rockwell Automation's overall financial performance in fiscal year 2008?
Rockwell Automation reported a strong fiscal year 2008 with total sales reaching $5.7 billion, a 14% increase over the prior year. The company also saw its income from continuing operations rise by 9% to $577.6 million, indicating healthy profitability and operational efficiency.
How did Rockwell Automation's geographic sales performance fare in 2008?
The company achieved a significant global presence, with 50% of its sales generated from customers outside the United States. Growth was particularly strong in the Asia-Pacific region (15% organic growth) and Latin America (14% organic growth), demonstrating the success of its globalization strategy.
What were the key drivers for the company's sales growth in 2008?
Sales growth was driven by a combination of factors, including a 6% organic sales increase, positive currency translation effects (5%), and contributions from strategic acquisitions (3%). The company also saw strong performance in resource-based industries and growth in its process and OEM initiatives.
How did the company manage its expenses and profitability?
Rockwell Automation effectively managed its expenses, despite increased investment in growth and technology, and the impact of acquisitions. This, along with productivity gains and volume leverage, contributed to a 9% increase in income from continuing operations. Special charges related to restructuring were also incurred, impacting net income but aimed at future cost efficiencies.
06—Continue