Rockwell Automation Inc. Reports Consolidated Earnings Results for the First Quarter Ended December 31, 2015; Revises Earnings Outlook for the Fiscal Year 2016
January 27, 2016 at 07:00 am EST
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Rockwell Automation Inc. reported consolidated earnings results for the first quarter ended December 31, 2015. For the quarter, the company's sales were $1,426.6 million, down 9.4% from $1,574.4 million in the first quarter of fiscal 2015. Adjusted EPS was $1.49, down 9% compared to $1.64 in the first quarter of fiscal 2015. On a GAAP basis, fiscal 2016 first quarter net income was $185.5 million or $1.40 per diluted share, compared to $214.2 million or $1.56 per diluted share in the first quarter of fiscal 2015. Cash flow provided by operating activities was $184.8 million against $268.2 million a year ago. Capital expenditure was $40.2 million against $40.0 million a year ago. Income before income tax was $236.9 million against $287.5 million a year ago.
The company is revising adjusted EPS guidance from the previous range of $5.90 to $6.40 to a new range of $5.70 to $6.20. The change in EPS guidance as about a $0.14 improvement due to the tax rate, about a $0.16 decline due to the additional currency headwind and about an $0.18 decline that is a combination of lower organic sales and a lower-margin expectation. The company continue to expect to convert about 100% of net income to free cash flow. Previously, the company expects a full year adjusted tax rate of 27%. The company now expects that to be 25%, reflecting the benefit of the R&D tax credit. The company now expecting fiscal 2016 sales of approximately $5.9 billion.
Rockwell Automation, Inc. is one of the world's largest companies that specialize in the manufacturing and marketing of automation and industrial infrastructure control systems. The products are primarily intended for the food processing, automotive, mining, oil, and gas industries. Net sales break down by family of products and services as follows:
- automation and control devices (45.2%): drive systems, variable frequency drives, motor controls, servo drives, servomotors, actuators, microcontrollers, safety, detection, protection systems, etc.;
- automation solutions and systems (31.9%): automation software and hardware platforms, design, visualization, simulation and execution software, human-machine interface devices, industrial computers, computer networks, etc.;
- professional services and value-added solutions (22.9%): consulting, training and maintenance services, on-site and remote assistance, cloud-based connected services, digital automation solutions for the oil, gas and petrochemical industries, etc.
Net sales are distributed geographically as follows: North America (57.7%), Europe/Middle East/Africa (20.7%), Asia/Pacific (15%) and Latin America (6.6%).
Rockwell Automation Inc. Reports Consolidated Earnings Results for the First Quarter Ended December 31, 2015; Revises Earnings Outlook for the Fiscal Year 2016