Rockwell Automation Inc. (NYSE:ROK) Q2 2015 Earnings Conference Call Transcript

Apr 30, 2015 • 08:30 am ET

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Rockwell Automation Inc. (NYSE:ROK) Q2 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

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

At this time, I would like to turn the call over to Rondi Rohr-Dralle, Vice President of Investor Relations. Ms. Rohr-Dralle. Please go ahead.

Executive
Rondi Rohr-Dralle

Thanks, Matt. Good morning. Thank you for joining us for Rockwell Automation's second fiscal 2015 quarter earnings release conference call. With me today as always are Keith Nosbusch, our Chairman and CEO; and Ted Crandall, our Chief Financial Officer. Our agenda includes opening remarks by Keith that include highlights on the Company's performance in the second quarter and the first half, and some contexts around our updated outlook for fiscal 2015. Then Ted will provide more details on the results as well as our sales and adjusted earnings per share guidance. As always, we'll take questions at the end of Ted's remark and 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 www.rockwellautomation.com. 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 Statement]

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

Executive
Keith Nosbusch

Thanks, Rondi, and good morning everyone. Thanks for joining us on the call today. Before I get started, I just wanted to say a few words about the announcement that we sent out a couple of weeks ago about Rondi's retirement plans. This will be her last earnings call and I want to thank her for the outstanding job she has done over her career. Her leadership and contributions most recently in the Investor Relations role has been tremendous. I value her consults, insight and positive can-do attitude. She was a pleasure to work with, a true professional and a great person. She helped us become a better company, but she'll be around for a while yet and I can assure you that you will all be in good hands as Patrick assumes responsibility for Investor Relations starting in July.

Let me start with some highlights for the quarter and the first half. So please turn to page three in the slide deck. Earnings growth in the quarter was robust despite a decline in sales due to a large currency headwind. Organic sales growth was a solid 2.7%, led by Architecture & Software. Logix sales were up 6% in the quarter, driven by our midrange portfolio. Our process business grew 2% in the quarter, which is good results given underlying market conditions. Margin expanded 270 basis points in the quarter, which contributed to a strong adjusted EPS growth of 18%. Free cash flow was also very good in the quarter. Ted will elaborate more on Q2 performance in his