Delaware | 1-12383 | 25-1797617 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit Number | Description | |
99 | Press Release of Registrant dated July 30, 2014. |
ROCKWELL AUTOMATION, INC. | |||
(Registrant) | |||
By | /S/ DOUGLAS M. HAGERMAN | ||
Douglas M. Hagerman | |||
Senior Vice President, General Counsel and Secretary |
Exhibit Number | Description | |
99 | Press Release of Registrant dated July 30, 2014. |
Contact | John Bernaden Media Relations Rockwell Automation 414.382.2555 | Rondi Rohr-Dralle Investor Relations Rockwell Automation 414.382.8510 |
• | Sales up 2 percent year over year |
• | Adjusted EPS of $1.49; diluted EPS of $1.43 |
• | Company narrows Adjusted EPS guidance to $6.10 - $6.25 |
• | macroeconomic factors, including global and regional business conditions, the availability and cost of capital, the cyclical nature of our customers’ capital spending, sovereign debt concerns and currency exchange rates; |
• | laws, regulations and governmental policies affecting our activities in the countries where we do business; |
• | the successful development of advanced technologies and demand for and market acceptance of new and existing products; |
• | the availability, effectiveness and security of our information technology systems; |
• | competitive products, solutions and services and pricing pressures, and our ability to provide high quality products, solutions and services; |
• | a disruption of our business due to natural disasters, acts of war, strikes, terrorism, social unrest or other causes; |
• | intellectual property infringement claims by others and the ability to protect our intellectual property; |
• | our ability to address claims by taxing authorities in the various jurisdictions where we do business; |
• | our ability to attract and retain qualified personnel; |
• | our ability to manage costs related to employee retirement and health care benefits; |
• | the uncertainties of litigation, including liabilities related to the safety and security of the products, solutions and services we sell; |
• | our ability to manage and mitigate the risks associated with our solutions and services businesses; |
• | a disruption of our distribution channels; |
• | the availability and price of components and materials; |
• | the successful integration and management of acquired businesses; |
• | the successful execution of our cost productivity and globalization initiatives; and |
• | other risks and uncertainties, including but not limited to those detailed from time to time in our Securities and Exchange Commission (SEC) filings. |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Sales | ||||||||||||||||
Architecture & Software (a) | $ | 715.2 | $ | 671.0 | $ | 2,097.9 | $ | 1,967.7 | ||||||||
Control Products & Solutions (b) | 934.3 | 953.2 | 2,743.8 | 2,668.5 | ||||||||||||
Total sales (c) | $ | 1,649.5 | $ | 1,624.2 | $ | 4,841.7 | $ | 4,636.2 | ||||||||
Segment operating earnings | ||||||||||||||||
Architecture & Software (d) | $ | 204.8 | $ | 188.6 | $ | 606.9 | $ | 541.7 | ||||||||
Control Products & Solutions (e) | 121.3 | 129.2 | 349.3 | 337.3 | ||||||||||||
Total segment operating earnings1 (f) | 326.1 | 317.8 | 956.2 | 879.0 | ||||||||||||
Purchase accounting depreciation and amortization | (5.5 | ) | (4.6 | ) | (15.9 | ) | (14.8 | ) | ||||||||
General corporate—net | (18.1 | ) | (20.9 | ) | (58.7 | ) | (57.5 | ) | ||||||||
Non-operating pension costs | (14.1 | ) | (19.6 | ) | (42.1 | ) | (59.0 | ) | ||||||||
Interest expense | (14.4 | ) | (15.3 | ) | (44.3 | ) | (46.0 | ) | ||||||||
Income before income taxes (g) | 274.0 | 257.4 | 795.2 | 701.7 | ||||||||||||
Income tax provision | (74.3 | ) | (53.7 | ) | (217.1 | ) | (160.7 | ) | ||||||||
Net income | $ | 199.7 | $ | 203.7 | $ | 578.1 | $ | 541.0 | ||||||||
Diluted EPS | $ | 1.43 | $ | 1.45 | $ | 4.12 | $ | 3.83 | ||||||||
Adjusted EPS2 | $ | 1.49 | $ | 1.54 | $ | 4.32 | $ | 4.09 | ||||||||
Average diluted shares | 139.6 | 140.4 | 140.0 | 141.1 | ||||||||||||
Segment operating margin | ||||||||||||||||
Architecture & Software (d/a) | 28.6 | % | 28.1 | % | 28.9 | % | 27.5 | % | ||||||||
Control Products & Solutions (e/b) | 13.0 | % | 13.6 | % | 12.7 | % | 12.6 | % | ||||||||
Total segment operating margin1 (f/c) | 19.8 | % | 19.6 | % | 19.7 | % | 19.0 | % | ||||||||
Pre-tax margin (g/c) | 16.6 | % | 15.8 | % | 16.4 | % | 15.1 | % |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Sales | $ | 1,649.5 | $ | 1,624.2 | $ | 4,841.7 | $ | 4,636.2 | ||||||||
Cost of sales | (968.0 | ) | (971.3 | ) | (2,840.7 | ) | (2,759.6 | ) | ||||||||
Gross profit | 681.5 | 652.9 | 2,001.0 | 1,876.6 | ||||||||||||
Selling, general and administrative expenses | (394.4 | ) | (383.7 | ) | (1,172.3 | ) | (1,134.0 | ) | ||||||||
Other income | 1.3 | 3.5 | 10.8 | 5.1 | ||||||||||||
Interest expense | (14.4 | ) | (15.3 | ) | (44.3 | ) | (46.0 | ) | ||||||||
Income before income taxes | 274.0 | 257.4 | 795.2 | 701.7 | ||||||||||||
Income tax provision | (74.3 | ) | (53.7 | ) | (217.1 | ) | (160.7 | ) | ||||||||
Net income | $ | 199.7 | $ | 203.7 | $ | 578.1 | $ | 541.0 |
June 30, 2014 | September 30, 2013 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,175.1 | $ | 1,200.9 | ||||
Short-term investments | 574.4 | 372.7 | ||||||
Receivables | 1,177.8 | 1,186.1 | ||||||
Inventories | 655.4 | 615.4 | ||||||
Property, net | 610.4 | 616.0 | ||||||
Goodwill and intangibles | 1,318.1 | 1,235.8 | ||||||
Other assets | 633.9 | 617.7 | ||||||
Total | $ | 6,145.1 | $ | 5,844.6 | ||||
Liabilities and Shareowners’ Equity | ||||||||
Short-term debt | $ | 279.9 | $ | 179.0 | ||||
Accounts payable | 564.1 | 546.7 | ||||||
Long-term debt | 905.4 | 905.1 | ||||||
Other liabilities | 1,673.8 | 1,628.3 | ||||||
Shareowners’ equity | 2,721.9 | 2,585.5 | ||||||
Total | $ | 6,145.1 | $ | 5,844.6 |
Nine Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Continuing operations: | ||||||||
Operating activities: | ||||||||
Income from continuing operations | $ | 578.1 | $ | 541.0 | ||||
Depreciation and amortization | 114.4 | 109.1 | ||||||
Retirement benefits expense | 100.0 | 127.8 | ||||||
Pension contributions | (32.7 | ) | (29.9 | ) | ||||
Receivables/inventories/payables | 4.2 | (43.3 | ) | |||||
Advanced payments from customers and deferred revenue | 25.5 | 26.0 | ||||||
Compensation and benefits | (21.3 | ) | (55.5 | ) | ||||
Income taxes | (29.1 | ) | 20.0 | |||||
Other | (31.7 | ) | (31.4 | ) | ||||
Cash provided by operating activities | 707.4 | 663.8 | ||||||
Investing activities: | ||||||||
Capital expenditures | (96.4 | ) | (86.9 | ) | ||||
Acquisition of businesses, net of cash acquired | (81.5 | ) | (84.8 | ) | ||||
Purchases of short-term investments | (487.0 | ) | (284.6 | ) | ||||
Proceeds from maturities of short-term investments | 285.3 | 262.5 | ||||||
Proceeds from sale of property | 0.3 | 0.3 | ||||||
Other investing activities | (3.4 | ) | (4.1 | ) | ||||
Cash used for investing activities | (382.7 | ) | (197.6 | ) | ||||
Financing activities: | ||||||||
Net issuance of short-term debt | 100.9 | 63.0 | ||||||
Cash dividends | (240.9 | ) | (203.9 | ) | ||||
Purchases of treasury stock | (345.2 | ) | (319.3 | ) | ||||
Proceeds from the exercise of stock options | 104.7 | 115.8 | ||||||
Excess income tax benefit from share-based compensation | 29.1 | 22.6 | ||||||
Other financing activities | — | (1.8 | ) | |||||
Cash used for financing activities | (351.4 | ) | (323.6 | ) | ||||
Effect of exchange rate changes on cash | 0.9 | (14.8 | ) | |||||
Cash (used for) provided by continuing operations | (25.8 | ) | 127.8 | |||||
Discontinued operations: | ||||||||
Cash used for discontinued operations | — | (7.0 | ) | |||||
(Decrease) increase in cash and cash equivalents | $ | (25.8 | ) | $ | 120.8 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Sales | Effect of Changes in Currency | Sales Excluding Effect of Changes in Currency | Effect of Acquisitions | Organic Sales | Sales | |||||||||||||||||||
United States | $ | 845.9 | $ | 2.0 | $ | 847.9 | $ | (0.4 | ) | $ | 847.5 | $ | 807.7 | |||||||||||
Canada | 113.3 | 7.4 | 120.7 | — | 120.7 | 131.5 | ||||||||||||||||||
Europe, Middle East, Africa | 336.7 | (12.9 | ) | 323.8 | (2.9 | ) | 320.9 | 318.6 | ||||||||||||||||
Asia Pacific | 220.5 | 2.6 | 223.1 | — | 223.1 | 223.1 | ||||||||||||||||||
Latin America | 133.1 | 9.6 | 142.7 | — | 142.7 | 143.3 | ||||||||||||||||||
Total | $ | 1,649.5 | $ | 8.7 | $ | 1,658.2 | $ | (3.3 | ) | $ | 1,654.9 | $ | 1,624.2 | |||||||||||
Nine Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Sales | Effect of Changes in Currency | Sales Excluding Effect of Changes in Currency | Effect of Acquisitions | Organic Sales | Sales | |||||||||||||||||||
United States | $ | 2,515.2 | $ | 6.6 | $ | 2,521.8 | $ | (0.4 | ) | $ | 2,521.4 | $ | 2,345.7 | |||||||||||
Canada | 321.0 | 23.2 | 344.2 | — | 344.2 | 354.6 | ||||||||||||||||||
Europe, Middle East, Africa | 1,001.1 | (30.0 | ) | 971.1 | (8.0 | ) | 963.1 | 931.8 | ||||||||||||||||
Asia Pacific | 627.8 | 14.4 | 642.2 | — | 642.2 | 608.8 | ||||||||||||||||||
Latin America | 376.6 | 34.0 | 410.6 | — | 410.6 | 395.3 | ||||||||||||||||||
Total | $ | 4,841.7 | $ | 48.2 | $ | 4,889.9 | $ | (8.4 | ) | $ | 4,881.5 | $ | 4,636.2 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Sales | Effect of Changes in Currency | Sales Excluding Effect of Changes in Currency | Effect of Acquisitions | Organic Sales | Sales | |||||||||||||||||||
Architecture & Software | $ | 715.2 | $ | 3.9 | $ | 719.1 | $ | (0.4 | ) | $ | 718.7 | $ | 671.0 | |||||||||||
Control Products & Solutions | 934.3 | 4.8 | 939.1 | (2.9 | ) | 936.2 | 953.2 | |||||||||||||||||
Total | $ | 1,649.5 | $ | 8.7 | $ | 1,658.2 | $ | (3.3 | ) | $ | 1,654.9 | $ | 1,624.2 | |||||||||||
Nine Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Sales | Effect of Changes in Currency | Sales Excluding Effect of Changes in Currency | Effect of Acquisitions | Organic Sales | Sales | |||||||||||||||||||
Architecture & Software | $ | 2,097.9 | $ | 14.8 | $ | 2,112.7 | $ | (0.4 | ) | $ | 2,112.3 | $ | 1,967.7 | |||||||||||
Control Products & Solutions | 2,743.8 | 33.4 | 2,777.2 | (8.0 | ) | 2,769.2 | 2,668.5 | |||||||||||||||||
Total | $ | 4,841.7 | $ | 48.2 | $ | 4,889.9 | $ | (8.4 | ) | $ | 4,881.5 | $ | 4,636.2 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | 19.7 | $ | 22.9 | $ | 59.0 | $ | 69.0 | |||||||
Amortization of prior service credit | (0.7 | ) | (0.6 | ) | (2.1 | ) | (1.9 | ) | |||||||
Operating pension costs | 19.0 | 22.3 | 56.9 | 67.1 | |||||||||||
Interest cost | 43.6 | 40.0 | 130.8 | 120.2 | |||||||||||
Expected return on plan assets | (54.5 | ) | (56.5 | ) | (163.5 | ) | (169.7 | ) | |||||||
Amortization of net actuarial loss | 25.0 | 36.1 | 74.8 | 108.5 | |||||||||||
Non-operating pension costs | 14.1 | 19.6 | 42.1 | 59.0 | |||||||||||
Net periodic pension cost | $ | 33.1 | $ | 41.9 | $ | 99.0 | $ | 126.1 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Income from continuing operations | $ | 199.7 | $ | 203.7 | $ | 578.1 | $ | 541.0 | |||||||
Non-operating pension costs | 14.1 | 19.6 | 42.1 | 59.0 | |||||||||||
Tax effect of non-operating pension costs | (5.1 | ) | (7.2 | ) | (15.1 | ) | (21.5 | ) | |||||||
Adjusted Income | $ | 208.7 | $ | 216.1 | $ | 605.1 | $ | 578.5 | |||||||
Diluted EPS from continuing operations | $ | 1.43 | $ | 1.45 | $ | 4.12 | $ | 3.83 | |||||||
Non-operating pension costs per diluted share, before tax | 0.10 | 0.14 | 0.30 | 0.42 | |||||||||||
Tax effect of non-operating pension costs per diluted share | (0.04 | ) | (0.05 | ) | (0.10 | ) | (0.16 | ) | |||||||
Adjusted EPS | $ | 1.49 | $ | 1.54 | $ | 4.32 | $ | 4.09 | |||||||
Effective tax rate | 27.1 | % | 20.9 | % | 27.3 | % | 22.9 | % | |||||||
Tax effect of non-operating pension costs | 0.5 | % | 1.1 | % | 0.4 | % | 1.1 | % | |||||||
Adjusted Effective Tax Rate | 27.6 | % | 22.0 | % | 27.7 | % | 24.0 | % |
Fiscal 2014 Guidance | Year Ended September 30, 2013 | |||||
Diluted EPS from continuing operations | $5.84 - $5.99 | $ | 5.36 | |||
Non-operating pension costs per diluted share, before tax | 0.40 | 0.55 | ||||
Tax effect of non-operating pension costs per diluted share | (0.14) | (0.20 | ) | |||
Adjusted EPS | $6.10 - $6.25 | $ | 5.71 |
Quarter Ended | ||||||||||||||||||||||||||||
Dec. 31, 2012 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | ||||||||||||||||||||||
Cash provided by continuing operating activities | $ | 167.3 | $ | 202.6 | $ | 293.9 | $ | 351.0 | $ | 203.5 | $ | 202.8 | $ | 301.1 | ||||||||||||||
Capital expenditures | (21.6 | ) | (33.4 | ) | (31.9 | ) | (59.3 | ) | (35.6 | ) | (22.7 | ) | (38.1 | ) | ||||||||||||||
Excess income tax benefit from share-based compensation | 10.6 | 10.4 | 1.6 | 9.3 | 10.7 | 7.9 | 10.5 | |||||||||||||||||||||
Free cash flow | $ | 156.3 | $ | 179.6 | $ | 263.6 | $ | 301.0 | $ | 178.6 | $ | 188.0 | $ | 273.5 |
Twelve Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
(a) Return | ||||||||
Income from continuing operations | $ | 793.4 | $ | 736.2 | ||||
Interest expense | 59.2 | 60.9 | ||||||
Income tax provision | 281.0 | 220.4 | ||||||
Purchase accounting depreciation and amortization | 20.4 | 19.7 | ||||||
Return | 1,154.0 | 1,037.2 | ||||||
(b) Average invested capital | ||||||||
Short-term debt | 254.5 | 227.2 | ||||||
Long-term debt | 905.2 | 905.0 | ||||||
Shareowners’ equity | 2,550.6 | 1,954.1 | ||||||
Accumulated amortization of goodwill and intangibles | 773.7 | 775.4 | ||||||
Cash and cash equivalents | (1,177.3 | ) | (931.1 | ) | ||||
Short-term investments | (434.0 | ) | (357.2 | ) | ||||
Average invested capital | 2,872.7 | 2,573.4 | ||||||
(c) Effective tax rate | ||||||||
Income tax provision | 281.0 | 220.4 | ||||||
Income from continuing operations before income taxes | $ | 1,074.4 | $ | 956.6 | ||||
Effective tax rate | 26.2 | % | 23.0 | % | ||||
(a) / (b) * (1-c) Return On Invested Capital | 29.6 | % | 31.0 | % |
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