10-KPeriod: FY2012

ROCKWELL AUTOMATION, INC Annual Report, Year Ended Sep 30, 2012

Filed November 19, 2012For Securities:ROK

Summary

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.

Financial Highlights

53 data points
Beta

Revenue

$6.26B

40.3% Gross Margin

Net Income

$737.00M

11.8% Net Margin

EPS (Diluted)

$5.13

Total Assets

$5.64B

Cash & Equivalents

$903.90M

Free Cash Flow

$579.10M

Financial Statements
Beta
Revenue$6.26B
Cost of Revenue$3.74B
Gross Profit$2.52B
R&D Expenses$247.60M
SG&A Expenses$1.49B
Operating Income$737.00M
Interest Expense$60.10M
Net Income$737.00M
EPS (Basic)$5.20
EPS (Diluted)$5.13
Shares Outstanding (Basic)141.50M
Shares Outstanding (Diluted)143.40M

Key Highlights

  • 1Total sales reached $6.26 billion, a 4% increase year-over-year (6% organic growth), demonstrating resilience in a challenging economic climate.
  • 2Architecture & Software segment sales were $2.65 billion (42% of total), and Control Products & Solutions segment sales were $3.61 billion (58% of total).
  • 3Income from continuing operations was $737.0 million, with diluted EPS of $5.13, indicating strong profitability.
  • 4Free cash flow generation was robust at $597.6 million, supporting investments, dividends, and share repurchases.
  • 5The company increased its quarterly dividend by 11% to $0.47 per share, reflecting confidence in financial health and commitment to shareholder returns.
  • 6Significant investments were made in R&D ($259.1 million) to drive innovation and maintain technology leadership in industrial automation.
  • 7International sales accounted for 51% of total revenue, highlighting the company's strong global footprint and reliance on diverse markets.

Frequently Asked Questions

Rockwell Automation's sales growth in fiscal year 2012 was primarily driven by strength in the transportation and oil & gas end markets, along with continued positive momentum in its 'process initiative' which saw sales grow approximately 20% year-over-year. Organic sales growth across all regions, particularly Canada and EMEA's emerging markets, also contributed significantly.

The company focused on continuous improvement initiatives, including cost productivity programs and driving operational efficiencies. This, combined with increased sales volume and a favorable sales mix, led to an expansion in total segment operating margin by one full percentage point, contributing to a healthy income from continuing operations.

Key risks include macroeconomic factors like global economic conditions and customer capital spending cycles, currency exchange rate volatility, intense competition from major players like Siemens and ABB, cybersecurity threats to IT systems, supply chain disruptions, and potential litigation or regulatory changes. The company also noted risks associated with its solutions business, including project execution and managing subcontractors.

Rockwell Automation continues to prioritize global expansion, with 51% of its revenue generated outside the U.S. The company is investing in emerging markets, particularly in Asia-Pacific, Latin America, and Central/Eastern Europe, anticipating that these regions will drive future automation market growth. Its strategy also includes expanding its served market, diversifying revenue streams, and making strategic acquisitions to complement organic growth.