Rockwell Automation Sales Up 32.6% Year Over Year
July 29, 2021
In addition to the sales increase, Rockwell reports an organic sales increase of 26.4% and record orders of over US$2 billion, up double digits year over year.
“Rockwell delivered an outstanding quarter, with record orders and organic sales growth of 26% exceeding our expectations,” says Blake Moret, Chairman and CEO. “These results reflect the high demand we are seeing for Rockwell’s core automation and digital transformation solutions, which provide our customers with the resiliency, agility and sustainability they need to be successful for the long term.”
Fiscal 2021 third quarter sales were $1,848.2 million, up 32.6% from $1,394.0 million in the third quarter of fiscal 2020 (all figures in $US). Currency translation increased sales by 5.1%, and acquisitions increased sales by 1.1%.
Fiscal 2021 third quarter GAAP net income attributable to Rockwell Automation was $271.3 million or $2.32 per share, compared to $317.8 million or $2.73 per share in the third quarter of fiscal 2020. The decreases in GAAP net income attributable to Rockwell Automation and Diluted EPS were primarily due to lower fair-value gains in fiscal 2021 versus fiscal 2020 in connection with our investment in PTC (the “PTC adjustments”). Fiscal 2021 third quarter Adjusted EPS was $2.31, up 75.0% compared to $1.32 in the third quarter of fiscal 2020, primarily driven by higher sales.
Pre-tax margin was 17.0% in the third quarter of fiscal 2021 compared to 24.0% in the same period last year. The decrease in pre-tax margin was primarily due to the PTC adjustments.
Total segment operating earnings were $368.7 million in the third quarter of fiscal 2021, up 60.7% from $229.4 million in the same period of fiscal 2020. Total segment operating margin was 19.9% compared to 16.5% a year ago, primarily driven by higher sales.
Cash flow provided by operating activities in the third quarter of fiscal 2021 was $461.5 million, compared to $346.2 million in the third quarter of fiscal 2020. Free cash flow in the third quarter of fiscal 2021 was $437.0 million, compared to $310.9 million in the same period last year, primarily due to higher Adjusted Income partially offset by higher income tax payments.
Fiscal year 2021 outlook
The COVID-19 pandemic and global efforts to respond to it continue to evolve. Rockwell is updating its guidance considering its performance through the first three quarters of the year, expectations of continued orders strength, and anticipation of continued supply chain constraints.
“Our strong quarterly performance and raised outlook reflect our high level of execution and the organic and inorganic investments we continue to make to accelerate our strategy. As always, the foundation of our success lies in our talented, engaged employees around the world. Across all three business segments and in each functional area, the dedication to our customers’ success sets us apart,” says Moret.
