How did Rockwell Automation's sales perform in the first half of fiscal year 2017 compared to the same period last year?

For the six months ended March 31, 2017, Rockwell Automation reported a 6.2% increase in total sales, reaching $3.04 billion, compared to $2.87 billion for the same period in fiscal year 2016. This growth was driven by a combination of organic sales increases, currency translation effects, and acquisitions.

What was the company's profitability like in this reporting period?

Profitability showed a marked improvement. Net income for the first six months of fiscal year 2017 increased to $404.2 million, up from $353.5 million in the prior year. Diluted Earnings Per Share (EPS) also saw a significant rise, from $2.68 to $3.11.

Can you provide details on the performance of Rockwell Automation's business segments?

The 'Architecture & Software' segment was a strong performer, with sales increasing by 11.2% to $1.42 billion for the first six months of FY2017. The 'Control Products & Solutions' segment also saw sales growth of 2.2% to $1.63 billion, although its operating margin decreased due to higher incentive compensation.

How is Rockwell Automation managing its cash flow, and what are the key drivers?

The company demonstrated robust cash flow generation. Cash provided by operating activities increased to $611.8 million for the six months ended March 31, 2017, compared to $399.3 million in the prior year. Free cash flow also saw a substantial increase to $544.4 million. This improvement was primarily attributed to higher pre-tax income, lower incentive compensation payments, and reduced income tax payments.

ROK 10-Q Quarterly Report Q2 FY2017 — Revenue, Net Income, EPS

Summary

Rockwell Automation, Inc. reported solid financial results for the first half of fiscal year 2017, demonstrating a healthy recovery and growth trajectory. Sales increased by 6.2% to $3.04 billion for the six months ended March 31, 2017, driven by a broad-based growth across most regions and industries, particularly in the transportation sector. The company's 'Architecture & Software' segment showed robust performance with a 11.2% sales increase, reflecting strong demand for its advanced automation and information solutions. The company also highlighted improved profitability, with net income rising to $404.2 million for the first six months of fiscal 2017, up from $353.5 million in the prior year. Diluted Earnings Per Share (EPS) saw a significant increase to $3.11 from $2.68. This performance was bolstered by effective cost management and a lower effective tax rate, which decreased from 22.1% to 17.2% due to favorable discrete tax items and tax benefits related to share-based compensation. Free cash flow also saw a substantial improvement, reaching $544.4 million for the period, indicating strong operational cash generation.

Financial Highlights

49 data points

Beta

Revenue

$1.55B

0.4% Gross Margin

Net Income

$189.50M

0.1% Net Margin

EPS (Diluted)

$1.45

Total Assets

$7.07B

Cash & Equivalents

$1.44B

Free Cash Flow

$273.00M

Financial Statements

Beta

Revenue	$1.55B
Cost of Revenue	$897.80M
Gross Profit	$656.50M
SG&A Expenses	$409.20M
Interest Expense	$18.90M
Net Income	$189.50M
EPS (Basic)	$1.47
EPS (Diluted)	$1.45
Shares Outstanding (Basic)	128.70M
Shares Outstanding (Diluted)	130.30M

Key Highlights

1Total sales for the six months ended March 31, 2017, increased by 6.2% to $3.04 billion compared to the same period in the prior year.
2Net income for the six months ended March 31, 2017, rose to $404.2 million, an increase of 14.3% year-over-year.
3Diluted EPS grew to $3.11 for the first six months of FY2017, up from $2.68 in the prior year.
4The 'Architecture & Software' segment reported a strong 11.2% sales increase for the six months ended March 31, 2017.
5Free cash flow for the first six months of FY2017 significantly improved to $544.4 million, up from $347.9 million in the prior year.
6The company's effective tax rate decreased from 22.1% to 17.2% for the six months ended March 31, 2017, driven by favorable discrete tax items.
7Share repurchases continued, with $186.0 million spent on repurchasing approximately 1.3 million shares during the first six months of FY2017.

ROCKWELL AUTOMATION, INC Quarterly Report for Q2 Ended Mar 31, 2017

Summary

Financial Highlights

Key Highlights

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