Rockwell Automation, Inc. · NYSE:ROK
Rockwell Automation — Q3 2015 Earnings Presentation
16 slides from Rockwell Automation's earnings presentation, Jul 29, 2015
Slide 1: Fiscal Year 2015 Third Quarter Conference Call
Fiscal Year 2015 Third Quarter Conference Call July 29, 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 liste
Slide 3: Fiscal 2015 Third Quarter and YTD Highlights
Fiscal 2015 Third Quarter and YTD Highlights Q3 Results Organic sales up 2.2% YOY Segment operating margin of 21.8%, up 200 bps YOY Adjusted EPS of $1.59, up 7% YOY Free cash flow of $267M YTD Highlights Revenue diversification yielding results Strong productivity driving margin expansio
Slide 4: Key Financial Information: Third Quarter
Key Financial Information: Third Quarter (in millions, except per share amounts) Q3 2015 Q3 2014 YOY B/(W) Sales $ 1,575 $ 1,650 (4.5)% Segment Operating Margin 21.8% 19.8% 200 bps General Corporate - Net $ 22 $ 18 $ (4) Adjusted EPS $ 1.59 $ 1.49 7% Adjusted Effective Tax Rate 27.9% 27.6% (30) bps
Slide 5: Architecture & Software
Architecture & Software Sales Segment Operating Margin ($ millions) 35% $2,200 $2,098 $2,066 $1,800 30.1% 30% 28.6% 29.2% 28.9% $1,400 $1,000 $715 $684 25% $600 $200 20% Q3 YTD Q3 YTD 2014 2015 2014 2015 YOY Sales % Change Segment operating margin expanded 60 bps Q3 2015 YTD in Q3, primarily due t
Slide 6: Control Products & Solutions
Control Products & Solutions Sales Segment Operating Margin ($ millions) $2,744 20% $2,800 $2,635 16.1% 15.3% $2,400 15% 13.0% 12.7% $2,000 $1,600 10% $1,200 $934 $892 5% $800 $400 0% Q3 YTD Q3 YTD 2014 2015 2014 2015 YOY Sales % Change Segment operating margin expanded 310 bps Q3 2015 YTD in Q3,
Slide 7: Regional Sales
Regional Sales (in millions, except percentages) Third Quarter * Q3 2015 YTD Solid US growth in spite of Organic Organic oil & gas headwinds Region Sales % Change Sales % Change Canada adversely impacted by U.S. $ 873 3.1% $ 2,572 2.2% resource-based industries Canada 93 (7.5)% 279 (3.7)% Impr
Slide 8: Revised Fiscal 2015 Guidance
Revised Fiscal 2015 Guidance April Guidance July Guidance Sales Midpoint ~ $6.4B ~ $6.4B Organic Growth Range 1.5% to 4.5% 1.5% to 2.5% Currency Translation & Acquisitions ~ (5.8)% ~ (5.5)% Segment Operating Margin ~ 21.5% ~ 22% Adjusted Effective Tax Rate ~ 26.5% ~ 27% Adjusted EPS $6.50 to $6.80 $
Slide 9: Supplemental Financial Information and Reconciliations to non-GAAP Measures
Appendix Supplemental Financial Information and Reconciliations to non-GAAP Measures Copyright © 2015 Rockwell Automation, Inc. All Rights Reserved.
Slide 10: Third Quarter Results: Summary
Third Quarter Results: Summary (in millions, except per share amounts) Q3 2015 Q3 2014 Total Sales $ 1,575.2 $ 1,649.5 Total Segment Operating Earnings $ 343.7 $ 326.1 Purchase Accounting Depreciation and Amortization (5.2) (5.5) General Corporate - Net (21.9) (18.1) Non-Operating Pension Costs (15.
Slide 11: Free Cash Flow
Free Cash Flow (in millions) Q3 2015 YTD 2015 Net Income $ 206.1 $ 626.3 Depreciation/Amortization 41.2 120.9 Retirement Benefits Expense 35.1 106.4 Receivables/Inventory/Payables (4.2) 69.1 Compensation and Benefits 12.2 (58.1) Pension Contributions (9.6) (30.9) Income Taxes 1.3 (12.7) Other 4.2 18
Slide 12: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended June 30, 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)/(c
Slide 13: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Organic Sales (in millions, except percentages) Three Months Ended June 30, 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)/(c
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 Nine Months Ended Nine Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Sales Architecture & Software (a) $ 683.5 $ 715.2 $ 2,065.6 $ 2,097.9 Contr
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) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Income from continuing operation
Slide 16: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Return On Invested Capital (in millions, except percentages) Twelve Months Ended June 30, 2015 2014 (a) Return Income from continuing operations $ 875.0 $ 793.4 Interest expense 62.0 59.2 Income tax provision 312.6 281.0 Purchase accounting depreciation and amorti