Page 35 - Oil&Gas-AustralAsia-2015-Issue-5
P. 35
S INGAPORE
Rockwell Automation Reports Fourth
Quarter and Full Year 2015 Results
• Fourth quarter sales down 10 per EPS of US$6.17 in fiscal 2014. Total oil and gas, have not yet stabilised,
cent year over year; down 2 per cent segment operating earnings increased and we see continued softness in key
organically to US$1,360.5 million in fiscal 2015 emerging markets. In our largest market,
• Fourth quarter Adjusted EPS of compared to US$1,352.0 million in fiscal the U.S., the strong dollar is adversely af-
US$1.57; diluted EPS of US$1.50 2014. Total segment operating margin fecting producers and OEMs. As a result,
• Full year Adjusted EPS of US$6.40, up increased to 21.6 per cent from 20.4 per our customers are being more cautious
4 per cent despite 5 per cent lower sales; cent a year ago, primarily due to higher with capital expenditures and operating
diluted EPS of $6.09 organic sales and strong productivity. spending. We, therefore, expect a par-
• Record fiscal year free cash flow and ROIC On a GAAP basis, fiscal 2015 net income ticularly weak start to the fiscal year and
• Company increases dividend 12 per cent was US$827.6 million or US$6.09 per do not believe we will see year-over-year
• Company provides fiscal 2016 Adjust- share, compared to US$826.8 million or growth until later in fiscal 2016.”
ed EPS guidance of US$5.90 - US$6.40 US$5.91 per share in fiscal 2014. Pre-tax “Based on these factors, we are pro-
Rockwell Automation, Inc. (NYSE: margin increased to 17.9 per cent from jecting fiscal 2016 organic sales to be
ROK) reported fiscal 2015 fourth quar- 17.1 per cent a year ago. flat to down 4 per cent year over year.
ter sales of US$1,607.5 million, down Commenting on the results, Keith D. Including the impact of currency, we
9.8 per cent from US$1,781.8 million Nosbusch, Chairman and Chief Ex- are initiating fiscal 2016 sales guidance
in the fourth quarter of fiscal 2014. ecutive Officer, said, “Both sales and of approximately US$6.0 billion and
Organic sales decreased 2.3 per cent, and earnings were below our expectations in Adjusted EPS guidance of US$5.90 to
currency translation reduced sales by 7.6 the quarter. Sales softened through the US$6.40.”
per cent. quarter and September was especially “We have a proven track record of
Fiscal 2015 fourth quarter Adjusted EPS weak, particularly in the U.S.” managing costs whilst protecting our
was US$1.57, down 16 per cent com- “For the full year, we overcame signifi- technology investments and domain
pared to Adjusted EPS of US$1.86 in the cant headwinds from heavy industry end expertise during challenging market
fourth quarter of fiscal 2014. Total seg- markets and delivered organic growth of conditions. We have already initiated
ment operating earnings were US$335.8 1.1 per cent. I am pleased that segment restructuring actions and will continue
million in the fourth quarter of fiscal operating margin expanded 120 basis to balance short-term financial perfor-
2015, down 15 per cent compared to points. Strong productivity, particularly mance with investments that will enable
US$395.8 million in the same period in the Control Products & Solutions seg- long-term growth and sustainable com-
last year. Results in the fourth quarter ment, was a key contributor. I am also petitive differentiation.”
of fiscal 2015 included US$12 million pleased that we were able to grow our “The long-term prospects for Rockwell
of restructuring charges. Total segment earnings per share despite lower sales.” Automation are very attractive. The
operating margin decreased to 20.9 per “We generated record free cash flow of secular drivers for industrial automation
cent from 22.2 per cent a year ago, pri- about US$1.1 billion and continued our and information remain intact, and we
marily due to lower operating margin in track record of returning cash to share- will continue to expand the value we
the Architecture & Software segment. owners. We returned over US$950 mil- provide our customers and gain market
On a GAAP basis, fiscal 2015 fourth lion in fiscal 2015, a 19 per cent increase share.”
quarter net income was US$201.3 mil- compared to fiscal 2014. And today we Following is a discussion of fourth
lion or US$1.50 per share, compared to are announcing a 12 per cent dividend quarter and full year results for both
US$248.7 million or US$1.79 per share increase, the seventh consecutive dou- segments.
in the fourth quarter of fiscal 2014. Pre- ble-digit percentage increase since the
tax margin decreased to 17.3 per cent beginning of 2010. This increase reflects AArrcchhiitteeccttuurree&&SSoofftwtwaarerefiscal 2015
from 19.0 per cent in the same period confidence in our sustainable cash fourth quarter sales were US$683.9
last year. generation.” million, a decrease of 8.5 per cent from
SFaullelsFwisecraelUYSea$r6,2300175.9 million in fiscal “I would like to thank our employ- US$747.4 million in the same period
2015, down 4.8 per cent compared ees, partners and suppliers for their last year. Organic sales decreased 0.4 per
to US$6,623.5 million in fiscal 2014. continued commitment to serve our cent, and currency translation reduced
Organic sales increased 1.1 per cent, and customers. Their dedication is key to our sales by 8.1 per cent. Segment operating
currency translation reduced sales by 6.0 success.” earnings were US$186.5 million in the
per cent. fourth quarter of fiscal 2015 compared
Fiscal 2015 Adjusted EPS was US$6.40, OCoumtlomoeknting on the outlook, Nosbusch to US$232.7 million in the fourth quar-
up 3.7 per cent compared to Adjusted added, “We are experiencing weak mar- ter of fiscal 2014. Segment operating
ket conditions as we enter fiscal 2016. margin decreased to 27.3 per cent in the
Heavy industry end markets, including fourth quarter of fiscal 2015 from 31.1
per cent a year ago, primarily due to
~continued on page 34
A Awww.oilandgasaustralasia.com NOVEMBER/DECEMBER 2015 OIL & GAS ustral SIA 33
Rockwell Automation Reports Fourth
Quarter and Full Year 2015 Results
• Fourth quarter sales down 10 per EPS of US$6.17 in fiscal 2014. Total oil and gas, have not yet stabilised,
cent year over year; down 2 per cent segment operating earnings increased and we see continued softness in key
organically to US$1,360.5 million in fiscal 2015 emerging markets. In our largest market,
• Fourth quarter Adjusted EPS of compared to US$1,352.0 million in fiscal the U.S., the strong dollar is adversely af-
US$1.57; diluted EPS of US$1.50 2014. Total segment operating margin fecting producers and OEMs. As a result,
• Full year Adjusted EPS of US$6.40, up increased to 21.6 per cent from 20.4 per our customers are being more cautious
4 per cent despite 5 per cent lower sales; cent a year ago, primarily due to higher with capital expenditures and operating
diluted EPS of $6.09 organic sales and strong productivity. spending. We, therefore, expect a par-
• Record fiscal year free cash flow and ROIC On a GAAP basis, fiscal 2015 net income ticularly weak start to the fiscal year and
• Company increases dividend 12 per cent was US$827.6 million or US$6.09 per do not believe we will see year-over-year
• Company provides fiscal 2016 Adjust- share, compared to US$826.8 million or growth until later in fiscal 2016.”
ed EPS guidance of US$5.90 - US$6.40 US$5.91 per share in fiscal 2014. Pre-tax “Based on these factors, we are pro-
Rockwell Automation, Inc. (NYSE: margin increased to 17.9 per cent from jecting fiscal 2016 organic sales to be
ROK) reported fiscal 2015 fourth quar- 17.1 per cent a year ago. flat to down 4 per cent year over year.
ter sales of US$1,607.5 million, down Commenting on the results, Keith D. Including the impact of currency, we
9.8 per cent from US$1,781.8 million Nosbusch, Chairman and Chief Ex- are initiating fiscal 2016 sales guidance
in the fourth quarter of fiscal 2014. ecutive Officer, said, “Both sales and of approximately US$6.0 billion and
Organic sales decreased 2.3 per cent, and earnings were below our expectations in Adjusted EPS guidance of US$5.90 to
currency translation reduced sales by 7.6 the quarter. Sales softened through the US$6.40.”
per cent. quarter and September was especially “We have a proven track record of
Fiscal 2015 fourth quarter Adjusted EPS weak, particularly in the U.S.” managing costs whilst protecting our
was US$1.57, down 16 per cent com- “For the full year, we overcame signifi- technology investments and domain
pared to Adjusted EPS of US$1.86 in the cant headwinds from heavy industry end expertise during challenging market
fourth quarter of fiscal 2014. Total seg- markets and delivered organic growth of conditions. We have already initiated
ment operating earnings were US$335.8 1.1 per cent. I am pleased that segment restructuring actions and will continue
million in the fourth quarter of fiscal operating margin expanded 120 basis to balance short-term financial perfor-
2015, down 15 per cent compared to points. Strong productivity, particularly mance with investments that will enable
US$395.8 million in the same period in the Control Products & Solutions seg- long-term growth and sustainable com-
last year. Results in the fourth quarter ment, was a key contributor. I am also petitive differentiation.”
of fiscal 2015 included US$12 million pleased that we were able to grow our “The long-term prospects for Rockwell
of restructuring charges. Total segment earnings per share despite lower sales.” Automation are very attractive. The
operating margin decreased to 20.9 per “We generated record free cash flow of secular drivers for industrial automation
cent from 22.2 per cent a year ago, pri- about US$1.1 billion and continued our and information remain intact, and we
marily due to lower operating margin in track record of returning cash to share- will continue to expand the value we
the Architecture & Software segment. owners. We returned over US$950 mil- provide our customers and gain market
On a GAAP basis, fiscal 2015 fourth lion in fiscal 2015, a 19 per cent increase share.”
quarter net income was US$201.3 mil- compared to fiscal 2014. And today we Following is a discussion of fourth
lion or US$1.50 per share, compared to are announcing a 12 per cent dividend quarter and full year results for both
US$248.7 million or US$1.79 per share increase, the seventh consecutive dou- segments.
in the fourth quarter of fiscal 2014. Pre- ble-digit percentage increase since the
tax margin decreased to 17.3 per cent beginning of 2010. This increase reflects AArrcchhiitteeccttuurree&&SSoofftwtwaarerefiscal 2015
from 19.0 per cent in the same period confidence in our sustainable cash fourth quarter sales were US$683.9
last year. generation.” million, a decrease of 8.5 per cent from
SFaullelsFwisecraelUYSea$r6,2300175.9 million in fiscal “I would like to thank our employ- US$747.4 million in the same period
2015, down 4.8 per cent compared ees, partners and suppliers for their last year. Organic sales decreased 0.4 per
to US$6,623.5 million in fiscal 2014. continued commitment to serve our cent, and currency translation reduced
Organic sales increased 1.1 per cent, and customers. Their dedication is key to our sales by 8.1 per cent. Segment operating
currency translation reduced sales by 6.0 success.” earnings were US$186.5 million in the
per cent. fourth quarter of fiscal 2015 compared
Fiscal 2015 Adjusted EPS was US$6.40, OCoumtlomoeknting on the outlook, Nosbusch to US$232.7 million in the fourth quar-
up 3.7 per cent compared to Adjusted added, “We are experiencing weak mar- ter of fiscal 2014. Segment operating
ket conditions as we enter fiscal 2016. margin decreased to 27.3 per cent in the
Heavy industry end markets, including fourth quarter of fiscal 2015 from 31.1
per cent a year ago, primarily due to
~continued on page 34
A Awww.oilandgasaustralasia.com NOVEMBER/DECEMBER 2015 OIL & GAS ustral SIA 33
