Rockwell Automation has announced its results for 2Q17, reporting sales of US$1554.3 million, up 7.9% from US$1440.3 million in 2Q16. Organic sales grew 6.8%.
2Q17 net income was US$189.5 million or US$1.45 per share, compared to US$168.0 million or US$1.28 per share in 2Q16. 2Q17 adjusted EPS was US$1.55, up 13% compared to US$1.37 in 2Q16. The increased EPS and adjusted EPS were largely due to higher sales and lower effective tax rates, partially offset by higher incentive compensation.
Pre-tax margin was 14.8% in 2Q17, compared to 15.1% in the same period last year. Total segment operating margin was 19% compared to 19.3% the previous year. Total segment operating earnings were US$296.0 million in 2Q17, up 7% from US$277.5 million in 2Q16. The increases in pre-tax income and total segment operating earnings were primarily due to higher sales, partially offset by higher incentive compensation.
Commenting on the results, Blake D. Moret, president and chief executive officer, said, “The results for the second quarter of fiscal 2017 were better than our expectations, and I am pleased with organic growth of 7%. I am also pleased with double-digit EPS growth in the quarter. “Growth was broad-based across most regions and industries. The transportation vertical was particularly strong, and we saw signs of improvement in certain heavy industries."
Commenting on the outlook, Moret added, "The macro environment continues to improve, with projections of Industrial Production growth rates higher than a quarter ago. Taking the macro outlook and our strong first half results into consideration, we now expect fiscal 2017 sales growth to be in the range of 4.5 percent to 7.5 percent. Including the impact of acquisitions and a smaller headwind from currency, we now project fiscal 2017 sales of approximately $6.25 billion at the midpoint, and are increasing the adjusted EPS guidance range to US$6.45 to US$6.75."
Moret continued, “We are well-positioned to succeed in this environment. Our technology differentiation, deep domain expertise and unique market access model enable us to provide superior value to our customers around the world. The Connected Enterprise is gaining traction, and we are increasing the number of pilots across industries, applications, and geographies.
"Our employees, partners and suppliers continue to make the difference at our customers. Their dedication and enthusiasm create the loyalty that sets us apart."
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