Rockwell Automation reports lower profit on weak conditions

Rockwell Automation
Rockwell Automation's Milwaukee headquarters.

Milwaukee-based Rockwell Automation Inc. today reported fiscal 2015 fourth quarter net income of $201.3 million, or $1.50 per share, down from $248.7 million, or $1.79 per share, in the fourth quarter of 2014.

Rockwell Automation
Rockwell Automation’s Milwaukee headquarters.

The industrial automation and information company’s revenue totaled $1.6 billion, down from $1.8 billion in the fourth quarter of 2014.

The company attributed the decrease to a 2.3 percent drop in organic sales and a 7.6 percent reduction due to foreign currency translation. Rockwell has experienced weak market conditions in the heavy industry and oil and gas markets.

“Both sales and earnings were below our expectations in the quarter,” said Keith Nosbusch, chairman and chief executive officer. “Sales softened through the quarter and September was especially weak, particularly in the U.S.”
For the full year, Rockwell reported net income of $827.6 million, or $6.09 per share, up from $826.8 million, or $5.91 per share, in 2014.

Its 2015 operating income was $827.6 million, up from $826.8 million in the fourth quarter a year ago.

And full-year revenue was $6.3 billion, down from $6.6 billion last year.

“For the full year, we overcame significant headwinds from heavy industry end markets and delivered organic growth of 1.1 percent,” Nosbusch said. “I am pleased that segment operating margin expanded 120 basis points. Strong productivity, particularly in the Control Products & Solutions segment, was a key contributor. I am also pleased that we were able to grow our earnings per share despite lower sales.”

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Molly Dill, former BizTimes Milwaukee managing editor.

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