10-KPeriod: FY2015

ROCKWELL AUTOMATION, INC Annual Report, Year Ended Sep 30, 2015

Filed November 17, 2015For Securities:ROK

Summary

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.

Financial Statements
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Key Highlights

  • 1Total sales decreased by 4.8% to $6.3 billion in fiscal year 2015, impacted by currency headwinds and weakness in heavy industries like oil and gas.
  • 2The company achieved a modest organic sales growth of 1.1%, driven by the consumer and automotive industries.
  • 3Segment operating margin improved by over one percentage point to 21.6%, primarily due to strong productivity measures.
  • 4Free cash flow increased to $1.08 billion, up from $922 million in the prior year, attributed to strong working capital performance.
  • 5Rockwell Automation returned $350 million to shareholders via dividends and repurchased approximately $606 million of its common stock.
  • 6The company's strategy includes expanding its served market, enhancing market access through channel partners, and pursuing acquisitions that catalyze organic growth.
  • 7Significant R&D investment of $307.3 million was made to drive technology innovation and maintain a competitive edge.

Frequently Asked Questions

Sales in fiscal year 2015 decreased by 4.8% to $6.3 billion. The primary factors contributing to this decline were unfavorable currency translation impacts (6.0%) and weakness in heavy industries, particularly the oil and gas sector. However, the company did achieve a modest organic sales growth of 1.1%, led by the consumer and automotive industries.

Rockwell Automation improved its segment operating margin by over one percentage point to 21.6% in fiscal year 2015. This improvement was driven by strong productivity initiatives and higher organic sales, which more than offset unfavorable currency effects and increased spending. The company also invested $307.3 million in research and development to support its technology leadership.

The company demonstrated strong cash flow generation. Cash provided by operating activities was $1.19 billion, and free cash flow increased to $1.08 billion in fiscal year 2015, primarily due to effective working capital management. Rockwell Automation returned capital to shareholders through $350 million in dividends paid and $606 million used for share repurchases during the year.

Rockwell Automation's long-term strategy focuses on achieving organic sales growth exceeding the automation market, diversifying its sales streams by broadening its product and service portfolio and expanding its global presence. Key strategies include enhancing market access through channel partners, pursuing acquisitions that complement its core offerings and strengthen technology leadership, and continuously improving quality and customer experience.