Rockwell reports 2nd quarter revenue upturn

Apr 28, 2010

MILWAUKEE -- Rockwell Automation, Inc. today reported fiscal 2010 second quarter revenue of $1,164.5 million, up 10 percent compared to $1,058.1 million in the second quarter of fiscal 2009. Currency translation contributed 5 percentage points to the increase. Fiscal 2010 second quarter revenue was up 9 percent sequentially compared to the first quarter of fiscal 2010. Fiscal 2010 second-quarter income from continuing operations was $111.9 million ($0.77 per share), compared to $40.6 million ($0.29 per share) in the second quarter of fiscal 2009. Fiscal 2010 second-quarter net income was $137.0 million ($0.95 per share), including $25.1 million (or $0.18 per share) from discontinued operations primarily due to the favorable resolution of a tax matter related to the fiscal 2007 Power Systems divestiture.

Total segment operating earnings were $177.3 million in the second quarter of fiscal 2010, up from $86.2 million in the same period of 2009. Total segment operating margin in the second quarter of fiscal 2010 increased to 15.2 percent from 8.1 percent in the second quarter of fiscal 2009, primarily due to higher segment operating margin in the Architecture & Software segment. Total segment operating margin was up 2.4 points sequentially compared to the first quarter of fiscal 2010.

Free cash flow was $166.8 million in the second quarter of fiscal 2010. Return on invested capital was 13.2 percent.

Commenting on the results, Keith D. Nosbusch, chairman and chief executive officer, said, "Our strong performance in the quarter reflects continued improvement in market conditions. We saw a return to year-over-year organic growth in the quarter, with continued momentum in our product revenues, meaningful growth in North America and mid-teens growth in emerging Asia. Increased volume, favorable mix and the impact of our previous cost-reduction actions all contributed to significant year-over-year margin improvement in the quarter. And we continue to deliver strong free cash flow. Given the market uncertainties at the beginning of this fiscal year, I am very pleased with our year-to-date results."

Nosbusch continued, "The recovery is underway. While the shape of the recovery remains uncertain, we are well positioned to outperform the underlying market in this cycle. Our growth prospects are bright. I am excited by the new opportunities we see every day, particularly in the areas of process control, OEMs and emerging markets. Our focus on customer success has provided superior long-term returns for our shareowners in the past and I believe it will do so in the future."


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