Summary
Rockwell Automation, Inc. (ROK) reported its financial results for the fiscal quarter ending December 31, 2017. The company experienced a net loss of $236.4 million, or -$1.84 per diluted share, a significant shift from the net income of $214.7 million, or $1.65 per diluted share, in the same period last year. This loss was primarily influenced by the provisional tax effects of the Tax Cuts and Jobs Act of 2017, including a deemed repatriation tax on foreign earnings and the revaluation of deferred tax assets, which together amounted to a substantial expense. Despite the reported net loss, the company's operations showed underlying strength. Total sales increased by 6.5% to $1.59 billion, driven by a 5.3% increase in organic sales, reflecting broad-based regional growth and strength in heavy industries. Both the Architecture & Software and Control Products & Solutions segments reported sales growth, with improved segment operating margins. Adjusted Diluted EPS, which excludes certain one-time charges including those related to the Tax Act, increased to $1.96 from $1.75 in the prior year, indicating operational resilience.
Financial Highlights
49 data points| Revenue | $1.59B |
| Cost of Revenue | $886.40M |
| Gross Profit | $700.20M |
| SG&A Expenses | $386.60M |
| Interest Expense | $20.00M |
| Net Income | -$236.40M |
| EPS (Basic) | $-1.84 |
| EPS (Diluted) | $-1.84 |
| Shares Outstanding (Basic) | 128.20M |
| Shares Outstanding (Diluted) | 128.20M |
Key Highlights
- 1Reported a net loss of $236.4 million ($1.84/share) for the quarter, a significant decline from a net income of $214.7 million ($1.65/share) in the prior year, largely due to tax reform impacts.
- 2Total sales increased 6.5% to $1.59 billion, with organic sales up 5.3%, showing broad-based demand across regions and industries.
- 3Architecture & Software segment sales grew 7.3%, with a segment operating margin of 30.1%.
- 4Control Products & Solutions segment sales increased 5.8%, with segment operating margin improving to 15.6% from 13.6%.
- 5Adjusted Diluted EPS (excluding tax reform impacts and other charges) increased to $1.96 from $1.75 in the prior year, highlighting operational performance.
- 6Cash provided by operating activities was $212.7 million, though free cash flow decreased to $178.6 million from $271.4 million year-over-year, mainly due to higher incentive compensation payments.
- 7The company announced an additional $1.0 billion share repurchase authorization, underscoring its commitment to returning capital to shareholders.