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 Highlights
52 data points| Revenue | $6.31B |
| Cost of Revenue | $3.60B |
| Gross Profit | $2.70B |
| R&D Expenses | $307.30M |
| SG&A Expenses | $1.51B |
| Interest Expense | $63.70M |
| Net Income | $827.60M |
| EPS (Basic) | $6.15 |
| EPS (Diluted) | $6.09 |
| Shares Outstanding (Basic) | 134.50M |
| Shares Outstanding (Diluted) | 135.70M |
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.