Company: ROK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001024478-25-000035
Chunk: 102

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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 Manufacturing PMI readings outside the U.S were mixed with readings in Asia Pacific generally better than readings in Europe, Canada, and Mexico.

Outlook

We expect sequential improvement in our sales and margins through 2025 as we continue to deliver on our cost reduction and margin expansion initiatives introduced in 2024. We expect over $250 million of year-over-year benefits from cost reduction and margin expansion actions in 2025 including continuing benefits from restructuring actions we initiated last year and benefits from reduced costs of direct and indirect purchases, increased manufacturing efficiency, and price actions.

Based on currently enacted tariffs, we estimate our cost exposure to be about $125 million for the second half of 2025. We continue to manage the impact of tariffs through actions including pricing and the use of alternative sources of materials and redundant manufacturing locations. Resiliency actions we took in recent years enable us to build certain high value product lines in more than one geographic location. In consideration of these mitigating actions, tariff costs are expected to be neutral to EPS in the current year.

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Summary of Results of Operations

The following table reflects our sales and operating results (in millions, except per share amounts and percentages):

 Three Months EndedMarch 31,Six Months EndedMarch 31, 2025202420252024SalesIntelligent Devices (a)$896 $974 $1,702 $1,901 Software & Control (b)568 569 1,097 1,173 Lifecycle Services (c)537 583 1,083 1,104 Total sales (d)$2,001 $2,126 $3,882 $4,178 Segment operating earnings (1)Intelligent Devices (e)$159 $161 $279 $311 Software & Control (f)171 146 304 298 Lifecycle Services (g)78 97 146 151 Total segment operating earnings (2) (h)408 404 729 760 Purchase accounting depreciation and amortization(36)(37)(71)(73)Corporate and other(33)(28)(71)(68)Non-operating pension and postretirement benefit credit— 5 — 10 Change in fair value of investments(3)3 (3)6 Interest expense, net(37)(37)(72)(65)Income before income taxes (i)299 310 512 570 Income tax provision(51)(45)(86)(92)Net