Rockwell Automation Inc. (ROK) reported earnings from continuing operations of 77 cents per share, exceeding the Zacks Consensus Estimate of 51 cents for the second quarter of FY10.
FY 2010 second quarter revenue was $1,164.5 million, up 10% compared to $1,058.1 million in the second quarter of fiscal 2009. Second quarter revenue was up 9% sequentially compared to the first quarter of fiscal 2010.
Segment Details
Architecture & Software 2QFY10 sales were $516.2 million, an increase of 31 percent from $393.5 million in the second quarter of fiscal 2009. Architecture & Software segment operating margin was 23.8% in the second quarter of fiscal 2010 compared to 8.4% in the same period of 2009.
Control Products & Solutions fiscal 2010 second quarter sales were $648.3 million, a decrease of 2 percent from $664.6 million in the second quarter of fiscal 2009. Segment operating margin was 8.4% in the second quarter of fiscal 2010 compared to 8.0% in the same period of 2009.
Total segment operating earnings were $177.3 million in the second quarter, up from $86.2 million in the same period of 2009. Total segment operating margin in the second quarter increased to 15.2% from 8.1% in the second quarter of FY09, primarily due to higher segment operating margin in the Architecture & Software segment.
Balance Sheet & Cash Flow
Cash and equivalents were $817 million with long-term debt at $904 million and shareowners’ equity at $1.4 billion. Free cash flow was $166.8 million in the second quarter of fiscal 2010. Return on invested capital was 13.2%.
Guidance
The company raised full-year fiscal 2010 earnings per share guidance to $2.60 to $2.90 on a revenue range of $4.65 billion to $4.8 billion.
Rockwell Automation, Inc. provides industrial automation power, control and information solutions. The company operates in two segments, Architecture & Software and Control Products & Solutions.
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