Company: ROK
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0001024478-25-000010
Chunk: 77

Company: ROCKWELL AUTOMATION, INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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 product (GDP), IP, and PMI as indicators of the growth opportunities in each region where we do business. Industrial output was mostly higher outside the U.S. in the first quarter of fiscal 2025 versus the fourth quarter of 2024. Manufacturing PMI readings outside the U.S in the largest countries where we do business had results reported below 50.

Outlook

We expect gradual 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 approximately $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. 

We continue to evaluate the potential impact of announced changes and further potential changes in trade policies and tariffs with the objective of maintaining profitability under a variety of scenarios. In 2024 our direct imports into the United States from third parties and our own manufacturing facilities in Mexico, Canada, and China were approximately $350 million, $100 million, and $100 million, respectively. We have increased, and will further increase, prices in response to enacted tariffs to maintain profitability. Alternative sources of materials and manufacturing locations will be used to also mitigate the impact. We are not expecting tariffs to have a material impact on profitability for the full 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 EndedDecember 31, 20242023SalesIntelligent Devices (a)$806 $927 Software & Control (b)529 604 Lifecycle Services (c)546 521 Total sales (d)$1,881 $2,052 Segment operating earnings (1)Intelligent Devices (e)$120 $150 Software & Control (f)133 151 Lifecycle Services (g)68 55 Total segment operating earnings (2) (h)321 356 Purchase accounting depreciation and amortization(35)(36)Corporate and other(38)(40)Non-operating pension and postretirement benefit credit— 5 Change in fair value of investments— 3 Interest expense, net(35)(28)Income before income taxes (i)213 260 Income tax provision(35)(47)Net income178 213 Net loss attributable to noncontrolling interests(6