Summary
Rockwell Automation, Inc. (ROK) reported a significant year-over-year decline in sales for the third quarter of fiscal 2009, down 31% to $1.01 billion, reflecting the impact of the global recession. This downturn affected all geographic regions and industries, with organic sales decreasing across the board. Consequently, income from continuing operations fell sharply to $32.8 million, or $0.23 per diluted share, compared to $152.6 million, or $1.03 per diluted share, in the prior year period. The company's performance was impacted by reduced customer demand and a higher effective tax rate. Despite the challenging environment, Rockwell Automation demonstrated resilience in cash flow generation, with free cash flow increasing to $342.4 million for the first nine months of fiscal 2009 due to improved working capital management and reduced capital expenditures.
Financial Highlights
51 data points| Revenue | $1.01B |
| Cost of Revenue | $640.60M |
| Gross Profit | $370.20M |
| SG&A Expenses | $305.00M |
| Operating Income | $32.80M |
| Interest Expense | $15.40M |
| Net Income | $32.80M |
| EPS (Basic) | $0.23 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 141.70M |
| Shares Outstanding (Diluted) | 142.30M |
Key Highlights
- 1Total sales decreased by 31% to $1.01 billion for the three months ended June 30, 2009, compared to $1.47 billion in the same period of 2008, driven by a broad decline in customer demand due to weak economic conditions.
- 2Income from continuing operations for the quarter was $32.8 million, a substantial decrease from $152.6 million in the prior year's quarter, resulting in diluted earnings per share of $0.23 compared to $1.03.
- 3Both operating segments, Architecture & Software and Control Products & Solutions, experienced significant sales declines, with operating margins contracting considerably.
- 4The company maintained a strong free cash flow generation, increasing to $342.4 million for the nine months ended June 30, 2009, up from $261.1 million in the comparable period of 2008, attributed to working capital improvements and lower capital expenditures.
- 5Total assets decreased to $4.16 billion as of June 30, 2009, from $4.59 billion as of September 30, 2008, primarily due to decreases in current assets like receivables and inventories.
- 6The company's debt-to-total-capital ratio remained relatively stable at 36.0% as of June 30, 2009, indicating a solid balance sheet despite the economic downturn.
- 7Rockwell Automation continues to manage costs and invest in core technologies, positioning itself to benefit from market recovery.