Bringing the resources together for a more efficient factory.
Saturday 23/9/2017
Bookmark and Share
SEARCH NEWS
 
 
   
   
 
 
 
 


 Featured Links

 
 
For supplier companies who want to offer their customers comprehensive 24 hour online product ordering facilities, Netalogue b2b web catalogue and ordering plug-ins link instantly to any existing web page and are easily maintained via any standard product or component database.
 

  Rockwell Automation Reports First Quarter 2017 Results

2  February  2017

  Rockwell Automation, has reported fiscal 2017 first quarter sales of $1,490.3 million, up 4.5 percent from $1,426.6 million in the first quarter of fiscal 2016. Organic sales grew 3.8 percent. Currency translation reduced sales by 1.1 percentage points, and acquisitions contributed 1.8 percentage points to sales growth.

Fiscal 2017 first quarter net income was $214.7 million or $1.65 per share, compared to $185.5 million or $1.40 per share in the first quarter of fiscal 2016. Fiscal 2017 first quarter Adjusted EPS was $1.75, up 17 percent compared to $1.49 in the first quarter of fiscal 2016. The increases in EPS and Adjusted EPS were primarily due to higher sales, strong margin performance and lower tax rates.

Pre-tax margin increased to 17.3 percent in the first quarter of fiscal 2017 from 16.6 percent in the same period last year. Total segment operating earnings were $316.6 million in the first quarter of fiscal 2017, up 7 percent from $295.9 million in the same period of fiscal 2016. Total segment operating margin was 21.2 percent compared to 20.7 percent a year ago. The increases in pre-tax margin and total segment operating margin were primarily due to higher sales and productivity, partially offset by higher incentive compensation.

Commenting on the results, Blake D. Moret, president and chief executive officer, said, “Four percent organic growth in the quarter is a great start to the fiscal year, better than we expected. We returned to organic growth in our largest market, the U.S., and we saw double-digit growth in emerging markets. I am also pleased with the contribution from recent acquisitions, along with our strong margin performance."

Commenting on the outlook, Moret added, "The macro environment remains consistent with our assumptions earlier in the fiscal year. Oil and commodity prices have been stable or have inched up, and our business in these markets has been relatively flat now for a few quarters. Recent projections continue to call for improving GDP and Industrial Production growth rates, as well as a higher level of capital expenditures. We therefore expect continued growth in the consumer and transportation verticals, and expect heavy industry end markets to be about flat year over year.

"Taking the macro outlook and our strong first quarter into consideration, we are increasing full-year organic sales guidance by one point across the range, and increasing EPS guidance by ten cents across the range."

Moret continued, “Strong underlying demand for our products enables us to accelerate investments this year in core technologies and domain expertise, and to expand the new value we are providing in Information Solutions and Connected Services. Together, these will further enhance our ability to bring The Connected Enterprise to life and profitably grow share at customers globally.

“I would like to thank our employees, partners and suppliers for their continued dedication in serving our customers.”

Following is a discussion of fiscal 2017 first quarter results for both segments.

Architecture & Software quarterly sales were $696.4 million, an increase of 8.3 percent compared to $642.9 million in the same period last year. Organic sales increased 7.6 percent, currency translation reduced sales by 1.0 percentage point, and acquisitions contributed 1.7 percentage points to sales growth. Segment operating earnings were $208.6 million compared to $176.2 million in the same period last year. Segment operating margin increased to 30.0 percent from 27.4 percent a year ago, primarily due to higher sales.

Control Products & Solutions quarterly sales were $793.9 million, an increase of 1.3 percent compared to $783.7 million in the same period last year. Organic sales increased 0.7 percent, currency translation reduced sales by 1.3 percentage points, and acquisitions contributed 1.9 percentage points to sales growth. Segment operating earnings were $108.0 million compared to $119.7 million in the same period last year. Segment operating margin decreased to 13.6 percent from 15.3 percent a year ago, primarily due to higher incentive compensation.

In the first quarter of fiscal 2017 cash flow provided by operating activities was $310.8 million and free cash flow was $271.4 million. Return on invested capital was 34.6 percent.

Fiscal 2017 first quarter general corporate-net expense was $14.9 million compared to $18.0 million in the first quarter of fiscal 2016.

On a GAAP basis, the effective tax rate in the first quarter of fiscal 2017 was 16.7 percent compared to 21.7 percent in the first quarter of fiscal 2016. The Adjusted Effective Tax Rate for the first quarter of fiscal 2017 was 18.1 percent compared to 22.8 percent a year ago. The decreases in the effective tax rate and the Adjusted Effective Tax Rate were primarily due to larger favorable discrete tax items in the current quarter compared to the prior year. For fiscal 2017, the Company now expects an effective tax rate of approximately 22.5 percent and an Adjusted Effective Tax Rate of approximately 23.5 percent.

During the first quarter of fiscal 2017, the Company repurchased 646 thousand shares of its common stock at a cost of $80.8 million. At December 31, 2016, $864.2 million remained available under the existing share repurchase authorisation.

For more information, please contact:

Rockwell Automation Ltd
UK Marketing Communications Specialist
Pitfield, Kiln Farm
Milton Keynes K11 3DR
Tel:  0870 242 5004 
Fax:  01908 839696
Email: SRatcli@ra.rockwell.com
Web:  www.rockwellautomation.co.uk
   
  FactoryEquipment.com are not responsible for the content of submitted or externally produced articles and images.
Click here to email FactoryEquipment.com about any errors or omissions contained within this article.
   

 


Bookmark and Share
FactoryEquipment.Com
Reg. no 3733110  Email Editor   Email Webmaster
(c) Copyright 2005-2017 FactoryEquipment.com