Rockwell Automation’s FY12 Q1 sales were up 8%, to $1.47 billion. The company’s release noted that it generated almost $211 million in free cash flow in the quarter—an impressive number, because it comes after Rockwell contributed $300 million to its pension trust and paid out bonuses based on 2011 performance.
Return-on-invested-capital in the quarter was 31.5%, Rockwell said. The company said FY12 sales would come in at $6.2 billion to $6.5 billion; FY11’s sales came in at almost precisely $6.0 billion.
Keith Nosbusch, chairman, CEO and president, spoke with market analysts about the company’s Q1 in a conference call. The following is an excerpt from the transcript:
Tagged with tEDTerry Darling – Goldman Sachs Group Inc., Research Division
On the geographic discussion in terms of how the regions played out versus expectations. I’m wondering if you could give us a little more color on how you felt the U.S. performed up 8% versus expectations. And any timing issues that may be related there?Keith D. Nosbusch
Sure. Well, the U.S. was strong, and we certainly think that at this point in the recovery, 8% year-over-year growth is very solid performance. We believe that MRO spending and medium and small project spending remain strong. There is also a continued strength of the OEM business here and their backlog continues to be strong, although limited in duration, but still continues to be operating at a reasonably high level. And we’re also seeing some strength in the heavy industries, oil and gas, in particular, and a little bit, although it’s a small market today, pulp and paper, has a little bit of strength in it. And transportation continues to remain strong, and we believe that will be a strong market throughout the year. And I think you’re seeing that in some of the commentary, particularly around the investments, that General Motors is planning to make over the short to mid-term.