Rockwell Automation Reports 16% increase in 4Q profits; Announces Full Year 2014 Results
Rockwell Automation, Inc. reported fiscal 2014 fourth quarter sales of $1,781.8 million, up 3.9 percent from $1,715.7 million in the fourth quarter of fiscal 2013. The company reported its fourth quarter profits increased by about 16 percent, according to a press release by the company.
Organic sales growth was 4.4 percent, and currency translation reduced sales by 0.7 percent. Fiscal 2014 fourth quarter sales were up 8.0 percent compared to the third quarter of fiscal 2014, despite nearly a full point of currency headwind.
Fiscal 2014 fourth quarter Adjusted EPS was $1.86, up 15 percent compared to Adjusted EPS of $1.62 in the fourth quarter of fiscal 2013. Total segment operating earnings were $395.8 million in the fourth quarter of fiscal 2014, up 11 percent compared to $357.8 million in the same period last year. Total segment operating margin increased to 22.2 percent from 20.9 percent a year ago, primarily due to higher sales, partially offset by increased spending.
On a GAAP basis, fiscal 2014 fourth quarter net income was $248.7 million or $1.79 per share, compared to $215.3 million or $1.53 per share in the fourth quarter of fiscal 2013. Pre-tax margin increased to 19.0 percent from 16.3 percent in the same period last year.
Fourth quarter sales up 3.9 percent year over year; up 4.4 percent organically
Fourth quarter Adjusted EPS of $1.86, up 15 percent year over year; fourth quarter diluted EPS of $1.79
Record sales and Adjusted EPS for full fiscal year 2014
Company provides fiscal 2015 Adjusted EPS guidance of $6.55 – $6.95
Sales were $6,623.5 million in fiscal 2014, up 4.3 percent compared to $6,351.9 million in fiscal 2013. Organic sales increased 5.1 percent, and currency translation reduced sales by 1.0 percent.
Fiscal 2014 Adjusted EPS was $6.17, up 8 percent compared to Adjusted EPS of $5.71 in fiscal 2013. Total segment operating earnings increased 9 percent to $1,352.0 million in fiscal 2014 compared to $1,236.8 million in fiscal 2013. Total segment operating margin increased to 20.4 percent from 19.5 percent a year ago, primarily due to higher sales, partially offset by increased spending.
On a GAAP basis, fiscal 2014 net income was $826.8 million or $5.91 per share, compared to $756.3 million or $5.36 per share in fiscal 2013. Pre-tax margin increased to 17.1 percent from 15.4 percent a year ago.
Commenting on the results, Keith D. Nosbusch, chairman and chief executive officer, said, “Results in the quarter were about as we expected with strong earnings on solid sales growth. Adjusted EPS grew an impressive 15 percent on 4.4 percent organic sales growth.
“For the full year we again achieved record sales and earnings per share. The U.S. led our sales performance with 7 percent organic growth, while segment operating margin increased almost a point for the second year in a row.
“We continued our strong track record of returning cash to shareowners in fiscal 2014 with over $800 million in dividends and share repurchases. That represents 87 percent of free cash flow for the year. During the year we authorized an additional $1 billion in share repurchases, and we have more than doubled the dividend over the last five years.
“These results would not be possible without the efforts of our employees, partners, and suppliers, and I want to thank them all for their ongoing commitment to our customers and their contributions to our success.”
Commenting on the outlook, Nosbusch said, “Despite heightened uncertainty in some regions, the U.S. economy remains strong, and forecasts call for continued moderate global economic growth. Based on these factors, along with underlying demand trends, we are projecting fiscal 2015 organic sales growth of 2.5 percent to 6.5 percent and initiating fiscal 2015 Adjusted EPS guidance of $6.55 – $6.95.
“The key drivers of automation growth remain intact, and we believe we have the right strategy to capitalize on these opportunities. We will continue to invest in innovative technology and domain expertise to expand the value we provide to our customers, while delivering superior returns to our shareowners.”
