Summary
Rockwell Automation, Inc. (ROK) reported its financial results for the fiscal quarter ended December 31, 2008. The company experienced a notable decrease in sales and net income compared to the same period in the prior year, reflecting the challenging global economic conditions. Sales declined by 11% to $1.19 billion, while net income fell to $118.4 million from $156.6 million in the prior year. Earnings per diluted share also decreased to $0.83 from $1.04. Despite the revenue and profit decline, the company demonstrated resilience in certain areas. Operating cash flow was $48.8 million, though free cash flow was significantly lower year-over-year at $21.8 million, impacted by special charges and a change in timing of certain payments. Management cited deteriorating economic, financial, and credit market conditions globally as the primary drivers of reduced customer demand. The company is actively managing costs and pursuing strategic initiatives to navigate the current economic environment.
Financial Highlights
27 data points| Revenue | $1.19B |
| Cost of Revenue | $718.80M |
| Gross Profit | $470.40M |
| SG&A Expenses | $313.40M |
| Operating Income | $115.60M |
| Interest Expense | $15.00M |
| Net Income | $118.40M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Basic) | 141.60M |
| Shares Outstanding (Diluted) | 142.10M |
Key Highlights
- 1Total sales decreased by 11% to $1.19 billion for the quarter ended December 31, 2008, compared to $1.33 billion in the prior year, impacted by global economic conditions and currency translation effects.
- 2Net income from continuing operations declined by 26% to $115.6 million, resulting in diluted earnings per share of $0.83, down from $1.04 in the prior year.
- 3The company recorded special charges of $50.7 million in the fourth quarter of 2008 related to restructuring actions aimed at aligning resources and reducing costs.
- 4Operating cash flow for the quarter was $48.8 million, a decrease from $101.5 million in the prior year.
- 5Free cash flow significantly decreased to $21.8 million from $78.1 million year-over-year, impacted by lower earnings, special charges, and payment timing.
- 6The Architecture & Software segment saw sales decrease by 12% and operating margin contract to 21.6% from 25.7%.
- 7The Control Products & Solutions segment experienced a sales decrease of 9% and its operating margin fell to 10.0% from 14.5%.