Summary
Rockwell Automation, Inc. (ROK) reported its fiscal second-quarter 2013 results, showing a slight year-over-year decline in total sales, down 2% to $1.52 billion. This decrease was primarily driven by weakness in the Asia-Pacific region and the ongoing recession in Western Europe, which offset solid performance in the Americas and Latin America. Despite the modest sales dip, the company demonstrated strong operational execution, with earnings per share (EPS) increasing to $1.24 ($1.33 on an adjusted basis), up from $1.16 ($1.20 adjusted) in the prior year's quarter. The company's profitability was supported by effective cost management and productivity initiatives, which compensated for lower sales volumes. Revenue from the 'Architecture & Software' segment saw a 4% decrease, while 'Control Products & Solutions' experienced a 1% decline. Emerging markets, a key growth area for Rockwell, saw a 9% decrease in sales, though Latin America showed resilience. Management remains focused on its long-term strategy of expanding market share, diversifying revenue, and driving innovation.
Financial Highlights
48 data points| Revenue | $1.52B |
| Cost of Revenue | $906.40M |
| Gross Profit | $616.40M |
| SG&A Expenses | $376.80M |
| Interest Expense | $15.30M |
| Net Income | $175.90M |
| EPS (Basic) | $1.25 |
| EPS (Diluted) | $1.24 |
| Shares Outstanding (Basic) | 140.00M |
| Shares Outstanding (Diluted) | 141.80M |
Key Highlights
- 1Total sales decreased by 2.0% to $1,522.8 million for the three months ended March 31, 2013, compared to $1,561.1 million for the same period in 2012.
- 2Diluted Earnings Per Share (EPS) increased to $1.24 from $1.16 year-over-year for the three months ended March 31, 2013.
- 3Adjusted Diluted EPS also saw an increase, rising to $1.33 from $1.20 year-over-year for the same period.
- 4The 'Architecture & Software' segment experienced a sales decline of 4.0%, while 'Control Products & Solutions' saw a slight decrease of 1.0%.
- 5Sales in emerging markets declined by 9% year-over-year, indicating a challenging global economic environment.
- 6The company repurchased approximately 1.4 million shares of common stock during the quarter for $88.91 per share.
- 7Cash provided by operating activities significantly improved, reaching $369.9 million for the six months ended March 31, 2013, compared to $64.5 million in the prior year period, largely due to the absence of a large pension contribution.