Rockwell Automation Inc. (NYSE:ROK) Q1 2015 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 08:30 am ET


Rockwell Automation Inc. (NYSE:ROK) Q1 2015 Earnings Conference Call - Final Transcript


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Thank you for holding and welcome to the Rockwell Automation's Quarterly Conference Call. I need to remind everyone that today's conference is being recorded. Later in the call, we will open up the lines for questions. (Operator Instructions)

At this time, I would like to turn the call over to Rondi Rohr Dralle, VP of IR. Mr. Rohr Dralle. Please go ahead.

Rondi Rohr Dralle

Thanks Ian. Good morning. Thank you for joining us for Rockwell Automation's first quarter fiscal 2015 earnings release conference call. With me today as always are Keith Nosbusch, our Chairman and CEO and Ted Crandall our CFO.

Our agenda today includes opening remarks by Keith then include highlights on the company's performance in the first quarter and some context around our revised outlook for fiscal '15. Then Ted, will provide more details on the results as well as our sales and adjusted earnings per share guidance. As always we take questions at the end of Ted's remarks. We expect the call to take about an hour today.

Our results were released this morning and the press release and charts have been posted to our website, at Please note that both the press release and charts include reconciliations to non-GAAP measures. A webcast of this call is accessible at that website and will be available for replay for the next 30-days.

(Forward-Looking Cautionary Statements)

So with that, I'll hand the call over to Keith.

Keith Nosbusch

Thanks Rondi. Good morning, everyone. We appreciate you joining us today. We hope those of you in the northeast have weather this storm okay. I'll start with the highlights for the quarter. So please turn to page three in the slide deck. We had a good start to the year with 2% organic sales growth in the quarter. This was better than we expected, given the strong sales last year in Q1, and especially given the low backlog in Solutions and Services at the beginning of the quarter. I'll start with some color on the top line. Architecture and Software delivered its sixth straight quarter of at least 5% organic growth. Our investments there are paying off. Logixsales were up 7% in the quarter. So back to a more normal expected relationship with Logixsales exceeding this segment average and we continue to see traction with our mid-range portfolio.

It's not on the chart, but our Process business grew 4% in the quarter. Latin America was a standout region with 18% growth, Brazil and Mexico continue to grow above 10% and we saw even higher rates of growth in selected other countries in the region. Our team there is executing very well and I congratulate them on an outstanding quarter. We expect Latin America to be our highest growth region this year and they're off to a great start.

Ted will provide additional color on the other regions performance. Operating margin, EPS growth and free cash flow were all very strong in the quarter. So all in all, it was a very good start to the