Rockwell Automation, Inc. (ROK) has reported 8 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $185.20 million, or $1.43 a share in the quarter, compared with $201.30 million, or $1.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $197.70 million, or $1.52 a share compared with $211.30 million or $1.57 a share, a year ago.
Revenue during the quarter dropped 4.29 percent to $1,538.60 million from $1,607.50 million in the previous year period. Gross margin for the quarter expanded 105 basis points over the previous year period to 42.37 percent. Total expenses were 83.76 percent of quarterly revenues, up from 81.12 percent for the same period last year. That has resulted in a contraction of 264 basis points in operating margin to 16.24 percent.
Operating income for the quarter was $249.80 million, compared with $303.50 million in the previous year period.
Blake D. Moret, president and chief executive officer, said, "The results for the last quarter of fiscal 2016 were a little better than our expectations. We saw positive year-over-year organic growth in the Architecture & Software segment for the first time this year, and some heavy industry markets appear to be stabilizing."
For financial year 2017, Rockwell Automation, Inc. forecasts diluted earnings per share to be in the range of $5.46 to $5.86. The company forecasts diluted earnings per share to be in the range of $5.85 to $6.25 on adjusted basis.
Operating cash flow declines
Rockwell Automation, Inc. has generated cash of $947.30 million from operating activities during the year, down 20.24 percent or $240.40 million, when compared with the last year.
The company has spent $440 million cash to meet investing activities during the year as against cash outgo of $246.90 million in the last year.
The company has spent $397.70 million cash to carry out financing activities during the year as against cash outgo of $608.10 million in the last year period.
Cash and cash equivalents stood at $1,526.40 million as on Sep. 30, 2016, up 6.94 percent or $99.10 million from $1,427.30 million on Sep. 30, 2015.
Debt increases substantially
Rockwell Automation, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,964.90 million as on Sep. 30, 2016, up 30.91 percent or $464 million from $1,500.90 million on Sep. 30, 2015. Short-term debt stood at $448.60 million as on Sep. 30, 2016. Total debt was 27.67 percent of total assets as on Sep. 30, 2016, compared with 23.43 percent on Sep. 30, 2015. Debt to equity ratio was at 0.99 as on Sep. 30, 2016, up from 0.67 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 13.73 for the quarter from 18.17 for the same period last year.
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