Rockwell Automation, Inc.
) reported fourth quarter fiscal 2012 earnings of $1.38 per share
compared with $1.39 in the prior-year quarter. The results were
ahead of the Zacks Consensus Estimate of $1.32.
Sales inched up 1% to $1.664 billion in the quarter,
surpassing the Zacks Consensus Estimate of $1.617 billion.
Organic sales increased 5% while currency translation negatively
impacted sales by 4 percentage points.
Cost of sales increased 2% year over year to $1 billion from
$991 million in the prior-year quarter. Gross profit declined 1%
year over year to $654 million, with gross margins contracting 80
basis points (bps) to 39.3%.
Selling, general and administrative expenses decreased
marginally to $386 million from $388 million in the prior-year
quarter. Segment operating income was $295 million in the quarter
compared with $298 million in the fourth quarter of 2011. Segment
operating margin contracted 30 basis points to 17.7%.
Architecture & Software:
Net sales declined 2% to $671 million in the quarter. Organic
sales increased 2% while currency translation affected sales by
4%. Operating earnings were $166.5 million, down 6.4% year over
year. Segment operating margin was 24.8% compared with 26% a year
Control Products & Solutions:
Net sales increased 2% to $992.7 million in the quarter. Organic
sales were up 6% while currency translation impacted sales by 4%.
Segment operating earnings improved 7% to $128.8 million. Segment
operating margin was 13%, a 60-basis points year-over-year
Fiscal 2012 Performance
The company reported fiscal 2012 adjusted earnings of $5.29
per share compared with $4.89 in the prior fiscal, surpassing the
Zacks Consensus Estimate of $5.09. Including non-operating
pension costs and its tax effect, the company reported earnings
of $5.13 compared with $4.79 in the prior year.
Sales increased 4% to $6.259 billion, beating the Zacks
Consensus Estimate of $6.218 billion. Organic sales increased 6%,
acquisitions added 1% while currency translation negatively
impacted sales by 3%.
Rockwell had cash and cash equivalents of $903.9 million as of
fiscal 2012 end compared with $988.9 million as of fiscal 2011
end. Total debt was $1.06 billion as of September 30, 2012,
compared with $905 million as of September 30, 2011. The
debt-to-capitalization ratio was 36.4% as of September 30, 2012,
compared with 34.1% as of September 30, 2011. In fiscal 2012, the
company generated cash flow from operating activities of $718.7
million, up from $643.7 million in the prior year.
During the reported quarter, Rockwell repurchased 1.4 million
shares for $96 million. During fiscal 2012, the company
repurchased 3.7 million shares for $265.3 million. As of
September 30, 2012, the company had $936.7 million worth of
shares remaining under the $1 billion share repurchase
Rockwell expects sales to be around $6.35 to $6.65 billion in
fiscal 2013. The company has factored in organic growth of 1% to
5% while currency translation and acquisitions will add one point
of growth. It expects earnings in the range of $5.35 to $5.75 per
During the year, Rockwell Automation hiked the quarterly
dividend by 11% and continued to repurchase shares, adding value
to the share holders. Rockwell's commitment toward increasing
shareholders return reflects its free cash flow generating
capability and a strong balance sheet. Going into 2013, the
sluggish global economy and a weaker solutions backlog will
remain headwinds for the company.
Based in Milwaukee, Wisconsin, Rockwell Automation is an
original equipment manufacturer (OEM) of industrial automation
equipment, application specific integrated software and
consulting design services. The company is a leading global
provider of industrial automation power, control, and information
Rockwell competes with
Emerson Electric Company
). Currently, it retains a Zacks #3 Rank, which translates to a
short-term (1 to 3 months) Hold rating.
ABB LTD-ADR (ABB): Free Stock Analysis Report
EMERSON ELEC CO (EMR): Free Stock Analysis
ROCKWELL AUTOMT (ROK): Free Stock Analysis
SIEMENS AG-ADR (SI): Free Stock Analysis
To read this article on Zacks.com click here.