Rockwell Automation Inc. Reports Consolidated Earnings Results for the First Quarter Ended December 31, 2016; Provides Earnings Guidance for the Fiscal 2017
January 25, 2017 at 05:30 pm IST
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Rockwell Automation Inc. reported consolidated earnings results for the first quarter ended December 31, 2016. For the quarter, the company reported sales of $1,490.3 million compared to $1,426.6 million a year ago. Income before income taxes was of $257.6 million compared to $236.9 million a year ago. Net income was $214.7 million or $1.65 per share compared to $185.5 million or $1.40 per share a year ago. Cash provided by operating activities was of $310.8 million compared to $184.8 million a year ago. Capital expenditures were of $39.4 million compared to $40.2 million a year ago. Adjusted income was $227.3 million or $1.75 per share compared to $197.6 million or $1.49 per share a year ago. The increase is due to a combination of higher sales, improved margins and a lower tax rate.
The company provided earnings guidance for the fiscal 2017. For the year, the company expects diluted EPS from continuing operations of $5.56 to $5.96, adjusted EPS of $5.95 to $6.35. The Company now expects an effective tax rate of approximately 22.5% and an Adjusted Effective Tax Rate of approximately 23.5%. Previous margin guidance was about 20%. Now it's a little higher than 20%. For the full year, the company expects free cash flow conversion to be above 100% of adjusted income.
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, 2016; Provides Earnings Guidance for the Fiscal 2017