Rockwell Automation Inc. Common Reports Operating Results (10-K)
Rockwell Automation has a market cap of $10.79 billion; its shares were traded at around $77.89 with a P/E ratio of 14.9 and P/S ratio of 1.7. The dividend yield of Rockwell Automation stocks is 2.5%. Rockwell Automation had an annual average earning growth of 7.6% over the past 10 years.
Highlight of Business Operations:Control Products & Solutions sales increased 24 percent to $3,406.1 million in 2011 compared to $2,742.0 million in 2010. Organic sales increased 20 percent, and the effects of currency translation and acquisitions contributed 3 percentage points and 1 percentage point, respectively, to the total increase. The segment s organic sales increase resulted from growth in both products and solutions and services businesses, which grew at rates similar to the segment average. Latin America, Asia-Pacific and EMEA reported year-over-year growth above the segment average, while year-over-year sales increases in the United States and Canada were less than the segment average growth rate. Pricing had an immaterial effect on revenue during the period.
Control Products & Solutions segment operating earnings were $368.5 million in 2011, up 52 percent from $241.8 million in the same period of 2010. Operating margin increased 2.0 points to 10.8 percent in 2011 as compared to 2010. The increase was predominantly due to volume increases, partially offset by sales mix and increased spending to support growth.
The table below reflects our operating results for years ended September 30, 2012, 2011 and 2010 with non-operating pension costs reclassified to their own line item for all periods presented. These costs were previously included in the operating earnings of each segment and in general corporate-net. Fiscal 2012, 2011 and 2010 non-operating pension costs excluded from Architecture & Software segment operating earnings were $11.6 million, $11.3 million and $3.4 million, respectively. Fiscal 2012, 2011 and 2010 non-operating pension costs excluded from Control Products & Solutions segment operating earnings were $20.9 million, $9.9 million and $6.2 million, respectively. Fiscal 2012, 2011 and 2010 non-operating pension costs excluded from general corporate-net were $2.7 million, $2.3 million and $0.5 million, respectively.
We estimate our pension expense will be approximately $168.8 million in 2013, an increase of approximately $64.1 million from 2012, of which $20.6 million and $43.5 million relate to operating and non-operating pension costs, respectively. Further information on operating and non-operating pension costs is provided in "Introduction of new non-GAAP measures and changes to definition of segment operating earnings for fiscal 2013" section in Part II, Item 7. "Management's Discussion and Analysis".
We recorded a valuation allowance for a portion of our deferred tax assets related to net operating loss, tax credit, and capital loss carryforwards (Carryforwards) and certain temporary differences in the amount of $31.8 million at September 30, 2012 and $32.8 million at September 30, 2011 based on the projected profitability of the entity in the respective tax jurisdiction. The valuation allowance is based on an evaluation of the uncertainty that the Carryforwards and certain temporary differences will be realized. Our income would increase if we determine we will be able to use more Carryforwards or certain temporary differences than currently expected.
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