Rockwell Automation, a leading industrial automation company, has reported robust performance in its fourth quarter of fiscal year 2023. The strong results were driven by improvements in the company’s supply chain, enabling faster product delivery to customers. This has contributed to a significant growth in organic sales, which increased by almost 18% year-over-year (YoY).
The Intelligent Devices business segment and Software and Control organic sales experienced particularly strong growth, with increases of 18% and 23% respectively. This performance has solidified Rockwell Automation’s position in the market and highlights the effectiveness of its product offerings.
Additionally, Rockwell Automation ended the year with a backlog of over $4.1 billion, indicating a strong demand for its products and a positive outlook for future growth.
One significant development for Rockwell Automation is its recent acquisition of Clearpath Robotics. This strategic move is expected to enhance the company’s position in the rapidly growing market for industrial mobile robots, which is projected to expand by over 30% in the next five years. Rockwell Automation anticipates that this acquisition will contribute to its top-line growth in fiscal year 2024.
Looking ahead, Rockwell Automation expects orders to increase in low single digits YoY, with the highest growth anticipated in the Americas. The company projects total reported sales of approximately $9.4 billion, with organic sales expected to grow by 1%. Adjusted earnings per share (EPS) are also forecasted to grow by 5% YoY.
In terms of financial outlook, Rockwell Automation expects reported sales growth to range from 0.5% to 6.5%, with organic sales growth estimated to be between -2% and +4%. The company also plans to allocate between $300 million and $500 million for share repurchases during the year.
1. What drove Rockwell Automation’s strong performance in Q4?
Rockwell Automation’s strong performance in Q4 was driven by improvements in its supply chain, enabling faster product delivery to customers.
2. What were the growth rates of organic sales in the Intelligent Devices and Software and Control business segments?
The Intelligent Devices business segment experienced organic sales growth of 18%, while the Software and Control business segment achieved growth of 23%.
3. How much was Rockwell Automation’s backlog at the end of the year?
Rockwell Automation ended the year with a backlog of over $4.1 billion.
4. What is the expected impact of the Clearpath Robotics acquisition?
The Clearpath Robotics acquisition is expected to boost Rockwell Automation’s position in the industrial mobile robotics market and contribute to its top-line growth in fiscal year 2024.