Summary
Rockwell Automation, Inc. reported stable sales of $6.7 billion for the fiscal year ended September 29, 2019, marking a slight 0.4% increase year-over-year, with organic sales growing by 2.8%. The company operates through two key segments: Architecture & Software and Control Products & Solutions, serving diverse industries including automotive, food & beverage, and oil & gas. The company's strategic focus remains on integrating industrial automation with information technology to drive digital transformation for its customers. Key growth initiatives include expanding its market reach in emerging economies and strengthening its information solutions and connected services. Despite a challenging macroeconomic environment marked by slowing global growth and trade tensions, Rockwell Automation demonstrated resilience through its diversified end-market exposure and geographic footprint. The company's financial performance was impacted by a significant loss on investments, particularly its stake in PTC Inc., which affected reported net income but not the underlying operational performance of its core business. Looking ahead, Rockwell Automation is investing in strategic acquisitions, such as Emulate3D, to enhance its digital simulation capabilities. The company continues to prioritize productivity initiatives, cost management, and innovation to maintain its competitive edge in the industrial automation market. The company also announced the formation of a joint venture, Sensia, with Schlumberger to focus on digital oilfield automation solutions, signaling a strategic move into specialized market segments.
Financial Highlights
57 data points| Revenue | $6.69B |
| Cost of Revenue | $3.79B |
| Gross Profit | $2.90B |
| R&D Expenses | $378.90M |
| SG&A Expenses | $1.54B |
| Interest Expense | $98.20M |
| Net Income | $695.80M |
| EPS (Basic) | $5.88 |
| EPS (Diluted) | $5.83 |
| Shares Outstanding (Basic) | 118.30M |
| Shares Outstanding (Diluted) | 119.30M |
Key Highlights
- 1Total sales were $6.7 billion, a modest 0.4% increase from the prior year, with organic sales up 2.8%, indicating underlying business growth.
- 2The company's core strategy revolves around 'The Connected Enterprise,' integrating automation and information technology for digital transformation.
- 3Architecture & Software segment sales slightly decreased by 0.9%, while Control Products & Solutions saw a 1.6% increase in sales.
- 4Segment operating earnings increased by 2% to $1.47 billion, with a total segment operating margin of 22.0%, up from 21.6% in the prior year.
- 5A significant loss of $368.5 million related to the fair value change of its investment in PTC Inc. heavily impacted the 'Income before income taxes' line item, reducing it by 32% year-over-year.
- 6Rockwell Automation repurchased approximately $1.0 billion of its common stock during the fiscal year.
- 7The company completed the formation of a joint venture, Sensia, with Schlumberger, to focus on digital oilfield automation solutions, holding a 53% controlling stake.