10-QPeriod: Q1 FY2015

ROCKWELL AUTOMATION, INC Quarterly Report for Q1 Ended Dec 31, 2014

Filed February 5, 2015For Securities:ROK

Summary

Rockwell Automation, Inc.'s (ROK) report for the quarter ended December 31, 2014, indicates a slight decrease in total sales by 1.1% year-over-year to $1.57 billion, primarily due to unfavorable currency translations impacting reported figures. However, on an organic basis, sales increased by 2.1%, highlighting underlying business growth. Net income rose by 7.6% to $214.2 million, or $1.56 per diluted share, compared to the prior year's $198.1 million, or $1.41 per diluted share. The company demonstrated solid operational execution, with total segment operating earnings increasing by 6% and segment operating margin expanding to 22.0% from 20.6%. This growth was driven by strong productivity and favorable mix, particularly within the Architecture & Software segment.

Financial Highlights

48 data points
Beta

Revenue

$1.57B

43.7% Gross Margin

Net Income

$214.20M

13.6% Net Margin

EPS (Diluted)

$1.56

Total Assets

$6.20B

Cash & Equivalents

$1.29B

Free Cash Flow

$228.20M

Financial Statements
Beta
Revenue$1.57B
Cost of Revenue$886.90M
Gross Profit$687.50M
SG&A Expenses$386.90M
Interest Expense$14.90M
Net Income$214.20M
EPS (Basic)$1.58
EPS (Diluted)$1.56
Shares Outstanding (Basic)135.60M
Shares Outstanding (Diluted)136.90M

Key Highlights

  • 1Total sales for the quarter were $1.57 billion, a slight decrease of 1.1% year-over-year, influenced by currency headwinds.
  • 2Organic sales grew by 2.1%, indicating underlying demand strength.
  • 3Net income increased by 7.6% to $214.2 million, with diluted EPS rising to $1.56 from $1.41.
  • 4Total segment operating earnings improved by 6% to $346.8 million.
  • 5The Architecture & Software segment saw a 1.7% increase in sales and a margin expansion to 31.3%.
  • 6Cash provided by operating activities significantly increased to $268.2 million, leading to robust free cash flow of $232.6 million.
  • 7The company repurchased approximately $167.3 million of its common stock during the quarter.

Frequently Asked Questions

Currency translation had an unfavorable impact on reported sales, reducing them by 3.4% year-over-year. This means that while underlying business performance was positive (organic sales grew 2.1%), the reported total sales decreased by 1.1% to $1.57 billion.

Profitability improved compared to the prior year. Net income rose by 7.6% to $214.2 million, and diluted earnings per share (EPS) increased to $1.56 from $1.41. The company also saw an improvement in its total segment operating margin, which expanded to 22.0%.

Rockwell Automation generated strong cash flow from operations, totaling $268.2 million, a significant increase from the previous year. This resulted in a healthy free cash flow of $232.6 million, indicating the company's ability to generate cash from its business operations. The company also continued its share repurchase program, buying back approximately $167.3 million of its stock.

During the quarter, Rockwell Automation acquired the assets of ESC Services, Inc., a provider of lockout-tagout services and solutions. This acquisition is expected to enhance customers' asset utilization and enterprise risk management.