Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q2 2015 Earnings Presentation
16 slides from Rockwell Automation's earnings presentation, Apr 30, 2015
Slide 1: Fiscal Year 2015 Second Quarter Conference Call
Fiscal Year 2015 Second Quarter Conference Call April 30, 2015 Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes statements related to the expected future results of the company and are therefore forward-looking statements. Actual results may differ materially from those projections due to a wide range of risks and uncertainties, including those that are listed
Slide 3: Fiscal 2015 Second Quarter and First Half Highlights
Fiscal 2015 Second Quarter and First Half Highlights Q2 Results Organic sales up 2.7% YOY Logix sales up 6%; Process up 2% Segment operating margin of 21.6%, up 270 bps YOY Adjusted EPS of $1.59, up 18% Free cash flow of $269M First Half Highlights Strong Latin America growth Segment operating margi
Slide 4: Key Financial Information: Second Quarter
Key Financial Information: Second Quarter (in millions, except per share amounts) Q2 2015 Q2 2014 YOY B/(W) Sales $ 1,551 $ 1,601 (3.1)% Segment Operating Margin 21.6% 18.9% 270 bps General Corporate - Net $ 21 $ 19 $ (2) Adjusted EPS $ 1.59 $ 1.35 18% Adjusted Effective Tax Rate 26.0% 27.9% 190 bps
Slide 5: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) $1,800 35% $1,383 $1,382 30.5% $1,400 29.8% 30% 29.1% 27.7% $1,000 $687 $674 25% $600 $200 20% Q2 YTD Q2 YTD 2014 2015 2014 2015 YOY Sales % Change Segment operating margin expanded 210 bps Q2 2015 YTD in Q2, primarily due to higher
Slide 6: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $2,000 20% $1,810 $1,743 15.2% 14.8% $1,600 15% 12.2% 12.6% $1,200 10% $914 $877 $800 5% $400 0% Q2 YTD Q2 YTD 2014 2015 2014 2015 YOY Sales % Change Segment operating margin expanded 300 bps Q2 2015 YTD in Q2, primarily due to
Slide 7: Regional Sales
Regional Sales (in millions, except percentages) Q2 2015 YTD Organic Organic Second Quarter * Region Sales % Change Sales % Change Solid US growth in spite of U.S. $ 863 3.5% $ 1,700 1.8% oil & gas headwinds Canada 86 (10.8)% 186 (1.7)% Canada adversely impacted by resource-based industries EMEA 286
Slide 8: Revised Fiscal 2015 Guidance
Revised Fiscal 2015 Guidance January Guidance April Guidance Sales Midpoint ~ $6.6B ~ $6.4B Organic Growth Range 2.5% to 5.5% 1.5% to 4.5% Currency Translation ~ (4.5)% ~ (6.0)% Acquisitions 0.2% 0.2% Segment Operating Margin ~ 21% ~ 21.5% Adjusted Effective Tax Rate ~ 26.5% ~ 26.5% Adjusted EPS $6.
Slide 9: Appendix
Appendix Supplemental Financial Information and Reconciliations to non-GAAP Measures Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.
Slide 10: Second Quarter Results: Summary
Second Quarter Results: Summary (in millions, except per share amounts) Q2 2015 Q2 2014 Total Sales $ 1,550.8 $ 1,600.5 Total Segment Operating Earnings $ 334.2 $ 302.1 Purchase Accounting Depreciation and Amortization (5.2) (5.8) General Corporate - Net (21.4) (18.9) Non-Operating Pension Costs (15
Slide 11: Free Cash Flow
Free Cash Flow (in millions) Q2 2015 YTD 2015 Net Income $ 206.0 $ 420.2 Depreciation/Amortization 39.1 79.7 Retirement Benefits Expense 35.2 71.3 Receivables/Inventory/Payables 34.8 73.3 Compensation and Benefits 28.9 (70.3) Pension Contributions (12.7) (21.3) Income Taxes (60.9) (14.0) Other 14.8
Slide 12: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended March 31, 2015 2014 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (a)/(
Slide 13: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended March 31, 2015 2014 Sales Sales Organic Effect of Excluding Growth Growth Changes in Changes in Effect of Organic (Decline) (Decline) Sales(a) Currency Currency Acquisitions Sales(b) Sales(c) (a)/(
Slide 14: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Segment Operating Margin (in millions, except percentages) Three Months Ended Three Months Ended Six Months Ended Six Months Ended March 31, 2015 March 31, 2014 March 31, 2015 March 31, 2014 Sales Architecture & Software (a) $ 674.3 $ 686.8 $ 1,382.1 $ 1,382.7 Con
Slide 15: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Adjusted Income, Adjusted EPS and Adjusted Effective Tax Rate (in millions, except per share amounts and percentages) Three Months Ended Three Months Ended Six Months Ended Six Months Ended March 31, 2015 March 31, 2014 March 31, 2015 March 31, 2014 Income from co
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended March 31, 2015 2014 (a) Return Income from continuing operations $ 868.6 $ 797.4 Interest expense 60.0 60.1 Income tax provision 308.4 260.4 Purchase accounting depreciation and amort