Rockwell Automation(US:ROK)2024-05-07 17:13Sales Performance - Total sales for the second quarter of 2024 were $2,126.0 million, a decrease of 6.6% compared to $2,275.4 million in the same quarter of 2023[123]. - Intelligent Devices segment sales were $973.5 million, down from $1,023.2 million year-over-year, reflecting a decline of 4.9%[123]. - Software & Control segment sales decreased by 23.1% to $570.0 million from $741.1 million in the prior year[123]. - Lifecycle Services segment sales increased by 14.0% to $582.5 million compared to $511.1 million in the same quarter of 2023[123]. - Total company sales decreased by 6.6% and 1.8% year over year for the three and six months ended March 31, 2024, respectively, with organic sales down 8.1% and 3.9%[124]. - North America sales for the three months ended March 31, 2024, were $1,293.6 million, a decrease of 1.3%, while Latin America saw an increase of 13.5% to $163.6 million[125]. - For the three months ended March 31, 2024, reported sales totaled $2,126.0 million, with organic sales at $2,090.8 million, reflecting a decrease from $2,275.4 million in the same period of 2023[163]. - For the six months ended March 31, 2024, total company sales were $4,178.1 million, compared to $4,256.4 million in the same period of 2023, showing a decline in overall sales performance[164]. - The Intelligent Devices segment reported sales of $973.5 million for the three months ended March 31, 2024, down from $1,023.2 million in the same period of 2023[164]. - The Asia Pacific region experienced a decline in reported sales to $269.9 million for the three months ended March 31, 2024, compared to $334.2 million in the prior year[163]. Financial Performance - Net income attributable to Rockwell Automation for the second quarter of 2024 was $266.2 million, down from $300.3 million in the same quarter of 2023, representing a decline of 11.3%[123]. - Diluted EPS for the second quarter of 2024 was $2.31, compared to $2.59 in the same quarter of 2023, a decrease of 10.8%[123]. - Income before income taxes was $310.4 million for the three months ended March 31, 2024, down from $351.4 million in the same period last year[127]. - Total segment operating margin for the second quarter of 2024 was 19.0%, down from 21.3% in the same quarter of 2023[123]. - Adjusted EPS for the six months ended March 31, 2024, was $4.54, down 17.2% compared to $5.48 in the same period last year[132]. - Net income attributable to Rockwell Automation for the six months ended March 31, 2024, was $481.4 million, a decrease of 29.7% compared to $684.3 million for the same period in 2023[145]. - The effective tax rate for the three months ended March 31, 2024, was 14.5%, down from 16.1% in the same period last year[129]. - The effective tax rate for the six months ended March 31, 2024, was 16.1%, down from 17.8% in the same period of 2023[145]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $152.4 million for the six months ended March 31, 2024, compared to $253.4 million for the same period in 2023, reflecting a decrease of 40%[146]. - Free cash flow for the six months ended March 31, 2024, was $33.3 million, significantly lower than $197.7 million for the same period in 2023, a decline of 83.2%[147]. - Capital expenditures increased to $119.1 million for the six months ended March 31, 2024, compared to $55.7 million in the same period of 2023, representing a 113% increase[147]. - The company expects future cash uses to include working capital, capital expenditures, dividends, and acquisitions, funded by existing cash, operating cash flows, and credit facilities[151]. - The company had approximately $625.3 million remaining for share repurchases under its existing board authorization as of March 31, 2024[150]. Restructuring and Future Outlook - The company anticipates approximately $100 million in savings from restructuring actions in the second half of 2024, offset by estimated restructuring costs of about $60 million[116]. - The company aims to achieve faster secular growth in traditional markets driven by customer needs for resiliency and sustainability[118]. - The company expects approximately $3.8 million of pre-tax net unrealized gains on cash flow hedges to be reclassified into earnings over the next 12 months[159]. - The company believes there has been no material change to its contractual cash obligations as of March 31, 2024, compared to the previous reporting period[160]. - The company engaged a third-party valuation specialist for the fair value allocation of intangible assets acquired through the acquisition of Clearpath, with a technology asset valued at $269.9 million[166].