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10-QPeriod: Q1 FY2019

ROCKWELL AUTOMATION, INC Quarterly Report for Q1 Ended Dec 31, 2018

Filed January 31, 2019For Securities:ROK

Summary

Rockwell Automation, Inc. reported results for the first quarter of fiscal year 2019, ending December 31, 2018. The company demonstrated a revenue increase of 3.5% year-over-year, with organic sales growing by 5.7%. This growth was primarily driven by strong performance in heavy industries and consumer sectors, although it was partially offset by a decline in the automotive segment. The Architecture & Software segment saw a 2.4% sales increase, while the Control Products & Solutions segment grew by 4.5%. The company's profitability saw a significant year-over-year improvement in Adjusted EPS, which rose to $2.21 from $1.96 in the prior year's comparable quarter. However, reported net income was $80.3 million, a substantial increase from the net loss of $(236.4) million in the prior year, largely influenced by a significant negative impact from investments in the current quarter, particularly related to PTC Inc. stock. Despite this, operating cash flow remained stable, and free cash flow was reported at $170.0 million.

Financial Statements
Beta
Revenue$1.64B
Cost of Revenue$903.60M
Gross Profit$738.70M
SG&A Expenses$386.70M
Interest Expense$20.70M
Net Income$80.30M
EPS (Basic)$0.67
EPS (Diluted)$0.66
Shares Outstanding (Basic)120.30M
Shares Outstanding (Diluted)121.50M

Key Highlights

  • 1Total sales increased by 3.5% to $1,642.3 million, with organic sales up 5.7%.
  • 2Architecture & Software segment sales grew 2.4%, and Control Products & Solutions segment sales grew 4.5%.
  • 3Reported net income turned positive at $80.3 million, a significant improvement from a net loss of $236.4 million in the prior year's quarter.
  • 4Adjusted EPS increased to $2.21 from $1.96 in the prior year's quarter, excluding significant non-operating items.
  • 5Operating cash flow remained strong at $212.0 million, while free cash flow was $170.0 million.
  • 6The company repurchased approximately $292.8 million of its common stock during the quarter.

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