Summary
Rockwell Automation, Inc.'s third quarter 2013 10-Q filing indicates a period of modest sales growth and improved profitability compared to the prior year. Total sales increased by 4% year-over-year, driven by solid performance in the United States, Canada, and Latin America, while the Asia-Pacific region saw a decline. The company experienced strong margin conversion, attributed to volume leverage and ongoing productivity initiatives. Profitability metrics show improvement, with Diluted EPS rising to $1.45 from $1.33 in the prior year's comparable quarter. Management highlighted the effective execution of their long-term strategy, focusing on market expansion, revenue diversification, and strategic acquisitions. The company also demonstrated robust cash flow generation, with free cash flow significantly increasing year-over-year, supporting share repurchases and dividend payments.
Financial Highlights
48 data points| Revenue | $1.62B |
| Cost of Revenue | $971.30M |
| Gross Profit | $652.90M |
| SG&A Expenses | $383.70M |
| Interest Expense | $15.30M |
| Net Income | $203.70M |
| EPS (Basic) | $1.46 |
| EPS (Diluted) | $1.45 |
| Shares Outstanding (Basic) | 138.90M |
| Shares Outstanding (Diluted) | 140.40M |
Key Highlights
- 1Total sales for the third quarter of fiscal year 2013 increased by 4% to $1.62 billion compared to the prior year, with notable strength in the Americas.
- 2Diluted Earnings Per Share (EPS) increased to $1.45 for the quarter, up from $1.33 in the same period last year.
- 3The Control Products & Solutions segment showed robust growth, with sales up 6% and operating margin improving to 13.6% from 11.9%.
- 4Architecture & Software segment sales saw a modest 1% increase year-over-year, with operating margin remaining stable.
- 5Free cash flow for the nine months ended June 30, 2013, significantly increased to $599.5 million from $251.0 million in the prior year, reflecting improved operating cash flow.
- 6The company repurchased approximately 1.2 million shares of common stock during the quarter for $104 million under its authorized share repurchase program.
- 7The effective tax rate decreased to 20.9% in the current quarter from 22.1% in the prior year quarter, partly due to favorable resolution of tax matters.