Rockwell Automation announced its financial results for the fourth quarter of 2020 and fiscal year 2020. Blake Moret, President and CEO of Rockwell Automation, stated that the company's performance in the fourth quarter and throughout the fiscal year demonstrated that even under extreme conditions, the resilience of the business model was growing and employees were more committed. Moret continued his words as follows; “The double-digit growth in orders in the last quarter indicates that business conditions have gradually improved and the value we provide to our customers in different sectors has increased. Despite the decline in sales on an annual basis, the stable profit margin and strong cash flow in the last quarter demonstrate our ability to manage costs while continuing to make strategic investments.
Results for the 2020th quarter of fiscal year 4
Sales for the fourth quarter of fiscal 2020 fell 2019 percent to $ 1 billion 730,2 million from $ 9,3 billion 1 million in the same period of 570. Organic sales fell by 12,1 percent, while 0,3 points of decrease in sales came from the exchange rate difference. Acquisitions, on the other hand, increased sales by 3,1 points. 4th quarter net income was $ 262,7 million, or $ 2,25 / share. In the fourth quarter of 2019, sales were $ 8,1 million, or $ 0,07 / share. The main reason for the increase in Rockwell Automation net revenues and EPS was the fair value adjustments (PTC adjustments) of our investments in PTC in the fourth quarter of 2020.
Adjusted EPS for the fourth quarter of fiscal 2020 fell by $ 1,87, down 2019 percent from $ 2,01 in the fourth quarter of 7. The main reason for this was the decrease in sales and the decrease was somewhat compensated with temporary and structural cost steps. The pre-tax profit margin increased to 2020 percent in the fourth quarter of 19,1. In the same period last year, the pre-tax margin was 3,3 percent. The main reason for this increase was PTC adjustments.
Total segment operating margin was 20,2 percent in the fourth quarter, unchanged from a year ago. Total segment operating revenues decreased by 349 percent to $ 9 million in the fourth quarter from $ 317,9 million in the same period last year. Operating operating cash flow fell from $ 475 million in the fourth quarter of last year to $ 2020 million in the fourth quarter of 325,8. During the same period, free cash flow was $ 50 million, including a $ 303,8 million pretax contribution to Company's US pension fund. In the same period of 2019, free cash flow was announced as $ 450,9 million.
Financial results for fiscal year 2020
Sales declined by 2020 percent to 2019 billion 6 million dollars in fiscal 694,8 from the level of 5,5 billion 6 million in 329,8. Organic sales fell 7,8 percent, currency loss decreased sales 1,2 percent, and acquisitions increased 3,5 percent. FY2020 net revenues were $ 1 billion 23,4 million or $ 8,77 / share, while in fiscal 2019 net income was $ 696,8 million or $ 5,83 / share. The increase in net revenues and EPS was largely due to the PTC Adjustments, and lower sales partially pulled those numbers down. The 2020 Adjusted EPS fell 11 percent to $ 7,68. Adjusted EPS in 2019 was at $ 8,67. The reduction in adjusted EPS was mainly due to the decrease in sales, which was partially offset by temporary and structural cost steps.
The pre-tax profit margin increased from 2020 percent last year to 13,5 percent in fiscal 17,9. The increase was particularly high with PTC adjustments, while it was pulled down by lower sales.
Total segment operating margin acquisitions partially offset the impact of lower sales, but declined from 22,0 percent last year to 19,9 percent. Total segment operating revenues declined by 2020 percent from the previous year's level of $ 1 billion 473,6 million to $ 14,6 billion 1 million in fiscal 257,9. In fiscal 2020, the cash flow generated by operating activities increased from $ 1 billion 182 million last year to $ 1 billion 120,5 million. Free cash flow declined to $ 50 billion 1 million, including a $ 6,6 million pre-tax contribution to Company's US pension fund. Free cash flow was $ 2019 billion 1 million in fiscal 49,2.
- Fourth quarter sales dropped 9,3 percent compared to a year ago, while organic sales decreased 12,1 percent compared to the same period last year.
- Fourth quarter sales rose 12,6 percent, organic sales increased 9,9 percent compared to the previous quarter.
- The fourth quarter diluted earnings per share (EPS) was announced at $ 4, while the adjusted earnings per share was $ 2,25.
- For fiscal 2020, diluted EPS was $ 8,77, while adjusted EPS was $ 7,68.
- In the fiscal year 2020, the Operating Cash Flow was $ 1 billion 120,5 million, while the Free Cash Flow conversion rate was 112 percent.
- Adjusted EPS for 2020 fiscal year after the redefinition of Adjusted Income and EPS was $ 7,87 according to the new definition.
- Fiscal Year 2021 EPS forecast: Diluted EPS $ 8,07 - $ 8,47; Adjusted EPS $ 8,45 - $ 8,85 (by new definition)