Rockwell Automation Reports Fourth Quarter and Full Year 2012 Results

  Rockwell Automation Reports Fourth Quarter and Full Year 2012 Results

  *Fourth quarter sales up 1 percent; organic sales up 5 percent
  *Fourth quarter diluted EPS of $1.38
  *Record sales and EPS for full year
  *Company provides fiscal 2013 guidance

Business Wire

MILWAUKEE -- November 05, 2012

Rockwell Automation, Inc. (NYSE: ROK) today reported fiscal 2012 fourth
quarter sales of $1,664.0 million, up 1 percent from $1,654.3 million in the
fourth quarter of fiscal 2011. Organic sales increased 5 percent and currency
translation reduced sales by 4percentage points. Fiscal 2012 fourth quarter
sales were up 7percent sequentially compared to the third quarter of fiscal
2012.

Net income was $195.2 million ($1.38 per share) compared to $201.8 million
($1.39 per share) a year ago. Total segment operating earnings were $295.3
million in the fourth quarter of fiscal 2012, down from $298.1 million in the
same period of 2011. Total segment operating margin was 17.7 percent, compared
to 18.0 percent a year ago. In the fourth quarter of fiscal 2012, the Company
incurred pre-tax restructuring charges of approximately $13 million, which was
about evenly split between segments.

Free cash flow was $346.6 million in the fourth quarter of fiscal 2012.

Full Fiscal Year 2012

Sales were $6,259.4 million in fiscal 2012, up 4 percent compared to $6,000.4
million in fiscal 2011. Organic sales increased 6 percent. Acquisitions
contributed 1percentage point to the growth rate and currency translation
reduced sales by 3 percentage points. Income from continuing operations was
$737.0 million ($5.13 per share) in fiscal 2012, compared to $697.1 million
($4.79 per share) in fiscal 2011, an increase of 7 percent on a per-share
basis. Total segment operating earnings increased 10 percent to $1,131.4
million in fiscal 2012, compared to $1,027.6 million in fiscal 2011. Total
segment operating margin expanded 1 percentage point to 18.1 percent from 17.1
percent a year ago.

Full fiscal year 2012 free cash flow was $597.6 million after a discretionary
pre-tax contribution of $300 million to the Company's U.S. pension trust.
Return on invested capital was 30.3 percent.

Commenting on the results, Keith D. Nosbusch, chairman and chief executive
officer, said, “I was pleased with 5 percent organic sales growth in the
quarter, especially given the tough comparison to last year's very strong
fourth quarter. While growth rates continued to moderate due to a difficult
economic environment, once again every region delivered organic growth. We
initiated restructuring actions that reduced margins in the quarter. Those
actions provide us with some headroom to rebalance investments in 2013.

“For the full year, we achieved record sales and earnings per share. Operating
margin expanded by one point while we continued to invest for growth. Our EMEA
region had a great year with 6 percent organic growth in the face of a
recession. We continued our track record of returning cash to shareowners by
increasing the dividend 11 percent and repurchasing 3.7 million shares.

"We delivered solid results in a challenging environment this year. I want to
thank our employees for their dedication and our customers, suppliers and
partners for their support throughout the year.”

Following is a discussion of fourth quarter results for both segments.

Architecture & Software

Architecture & Software fiscal 2012 fourth quarter sales were $671.3 million,
a decrease of 2 percent from $683.3 million last year. Organic sales increased
3 percent and currency translation reduced sales by 5percentage points.
Fiscal 2012 fourth quarter sales were up 1percent sequentially from the third
quarter of fiscal 2012. Segment operating earnings were $166.5 million in the
fourth quarter of fiscal 2012, compared to $177.9 million in the fourth
quarter of fiscal 2011. Segment operating margin was 24.8 percent in the
fourth quarter of fiscal 2012, compared to 26.0 percent a year ago.

Control Products & Solutions

Control Products & Solutions fiscal 2012 fourth quarter sales were $992.7
million, an increase of 2 percent from $971.0 million last year. Organic sales
increased 6 percent and currency translation reduced sales by 4percentage
points. Fiscal 2012 fourth quarter sales were up 11percent sequentially from
the third quarter of fiscal 2012. Segment operating earnings increased to
$128.8 million in the fourth quarter of fiscal 2012, compared to $120.2
million in the fourth quarter of fiscal 2011. Segment operating margin was
13.0 percent in the fourth quarter of fiscal 2012, compared to 12.4 percent a
year ago.

Other Information

Fiscal 2012 fourth quarter general corporate net expense was $20.6 million,
compared to $22.2 million in the fourth quarter of 2011. General corporate net
expense was $85.6 million for the full fiscal year 2012, compared to $80.7
million in fiscal 2011.

The effective tax rate for the fourth quarter of fiscal 2012 was 23.4 percent,
compared to 21.2 percent in the fourth quarter of 2011. The effective tax rate
for the full fiscal year 2012 was 23.7 percent, compared to 19.7 percent in
fiscal 2011.

During the fourth quarter of fiscal 2012, the Company repurchased 1.4 million
shares of its common stock at a cost of $95.8 million. During fiscal year
2012, the Company repurchased 3.7 million shares of its common stock at a cost
of $265.3 million. At September30, 2012, $936.7 million remained available
under the $1.0billion share repurchase authorization.

Changes to definition of segment operating earnings and introduction of new
non-GAAP measures for fiscal 2013

Significant declines in interest rates over the past several years have caused
an extraordinary increase in certain components of pension expense that the
Company considers to be unrelated to its underlying operating performance. In
order to provide transparency into the operating results of our business,
beginning in fiscal 2013, the Company will provide non-GAAP earnings measures
(Adjusted Income and Adjusted EPS) that exclude non-operating pension costs
and their related tax effects from income from continuing operations and
corresponding earnings per share (EPS). The Company defines non-operating
pension costs as defined benefit plan interest cost, expected return on plan
assets, amortization of actuarial gains and losses and the impacts of any plan
curtailments or settlements. In addition, the Company will redefine segment
operating earnings to exclude non-operating pension costs. Fiscal 2013
guidance is being provided for Adjusted EPS.

Organic sales, total segment operating earnings, total segment operating
margin, free cash flow and return on invested capital are non-GAAP measures
that are reconciled to GAAP measures in the attachments to this release. Also
included in the attachments to this release are reconciliations of redefined
segment operating earnings and the new non-GAAP measures of Adjusted Income
and Adjusted EPS for the fiscal years 2010 - 2012. Quarterly and annual
reconciliations of redefined segment operating earnings, Adjusted EPS and
Adjusted Income and an annual schedule of components of pension expense for
the fiscal years 2008-2012 are provided in the Supplemental Financial Data
document posted on Rockwell Automation's website at
http://www.rockwellautomation.com/investors/.

Outlook

The Company is providing a fiscal 2013 sales outlook of $6.35 to $6.65
billion, which represents organic growth of 1 to 5 percent. Currency
translation and acquisitions will add one point of growth. Based on this sales
outlook, the Company is initiating fiscal 2013 Adjusted EPS guidance of $5.35
to $5.75, which compares to Adjusted EPS of $5.29 for fiscal 2012.

Commenting on the outlook, Nosbusch said, “The sluggish global economy and a
weaker solutions backlog are headwinds as we enter fiscal 2013. While we do
expect sales to increase next year, the growth will likely be more weighted to
the second half.

"We plan to invest in our best growth opportunities in 2013, but we will
closely monitor business conditions and adjust as appropriate. While we can't
control the economy, I believe we are well-positioned to outgrow the market
with our innovative technology, domain expertise and thought leadership."

Conference Call

A conference call to discuss our financial results will take place at 8:30
A.M. Eastern Time on November5, 2012. The call and related financial charts
will be webcast and accessible via the Rockwell Automation website
(http://www.rockwellautomation.com/investors/).

This news release contains statements (including certain projections and
business trends) that are “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. Words such as “believe”,
“estimate”, “project”, “plan”, “expect”, “anticipate”, “will”, “intend” and
other similar expressions may identify forward-looking statements. Actual
results may differ materially from those projected as a result of certain
risks and uncertainties, many of which are beyond our control, including but
not limited to:

  *macroeconomic factors, including global and regional business conditions,
    the availability and cost of capital, the cyclical nature of our
    customers’ capital spending, sovereign debt concerns and currency exchange
    rates;
  *laws, regulations and governmental policies affecting our activities in
    the countries where we do business;
  *the successful development of advanced technologies and demand for and
    market acceptance of new and existing products;
  *the availability, effectiveness and security of our information technology
    systems;
  *competitive product and pricing pressures, and our ability to provide high
    quality products, services and solutions;
  *a disruption of our operations due to natural disasters, acts of war,
    strikes, terrorism, social unrest or other causes;
  *intellectual property infringement claims by others and the ability to
    protect our intellectual property;
  *our ability to successfully address claims by taxing authorities in the
    various jurisdictions where we do business;
  *our ability to attract and retain qualified personnel;
  *our ability to manage costs related to employee retirement and health care
    benefits;
  *the uncertainties of litigation, including liabilities related to safety
    and security of the products, services and solutions we sell;
  *our ability to manage and mitigate the risks associated with our solutions
    business;
  *a disruption of our distribution channels;
  *the availability and price of components and materials;
  *the successful integration and management of acquired businesses;
  *the successful execution of our cost productivity and globalization
    initiatives; and
  *other risks and uncertainties, including but not limited to those detailed
    from time to time in our Securities and Exchange Commission filings.

These forward-looking statements reflect our beliefs as of the date of filing
this release. We undertake no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

Rockwell Automation, Inc. (NYSE: ROK), the world’s largest company dedicated
to industrial automation and information, makes its customers more productive
and the world more sustainable. Headquartered in Milwaukee, Wis., Rockwell
Automation employs over 22,000 people serving customers in more than 80
countries.



ROCKWELL AUTOMATION, INC.
SALES AND EARNINGS INFORMATION
(in millions, except per share amounts)
                                                
                                                     
                       Three Months Ended            Twelve Months Ended
                       September 30,                 September 30,
                       2012         2011            2012         2011
Sales
Architecture &         $ 671.3       $ 683.3         $ 2,650.4     $ 2,594.3
Software (a)
Control Products &     992.7        971.0          3,609.0      3,406.1   
Solutions (b)
Total sales (c)        $ 1,664.0    $ 1,654.3      $ 6,259.4    $ 6,000.4 
                                                                   
Segment operating
earnings
Architecture &         $ 166.5       $ 177.9         $ 702.8       $ 659.1
Software (d)
Control Products &     128.8        120.2          428.6        368.5     
Solutions (e)
Total segment
operating              295.3         298.1           1,131.4       1,027.6
earnings^1 (f)
                                                                             
Purchase
accounting             (4.9      )   (5.2      )     (19.8     )   (19.8     )
depreciation and
amortization
General corporate      (20.6     )   (22.2     )     (85.6     )   (80.7     )
— net
Interest expense       (14.9     )   (14.6     )     (60.1     )   (59.5     )
                                                                             
Income from
continuing             254.9         256.1           965.9         867.6
operations before
income taxes
Income tax             (59.7     )   (54.3     )     (228.9    )   (170.5    )
provision
Income from
continuing             195.2         201.8           737.0         697.1
operations
Income from
discontinued           —            —              —            0.7       
operations
Net income             $ 195.2      $ 201.8        $ 737.0      $ 697.8   
                                                                   
Diluted earnings
per share
Continuing             $ 1.38        $ 1.39          $ 5.13        $ 4.79
operations
Discontinued           —            —              —            0.01      
operations
Net income             $ 1.38       $ 1.39         $ 5.13       $ 4.80    
                                                                   
Average diluted        141.5        144.4          143.4        145.2     
shares
                                                                   
Segment operating
margin
Architecture &         24.8      %   26.0      %     26.5      %   25.4      %
Software (d/a)
Control Products &     13.0      %   12.4      %     11.9      %   10.8      %
Solutions (e/b)
Total segment
operating margin^1     17.7      %   18.0      %     18.1      %   17.1      %
(f/c)

   
     Total segment operating earnings and total segment operating margin are
     non-GAAP financial measures. We believe that these measures are useful to
^1   investors as measures of operating performance. We use these measures to
     monitor and evaluate the profitability of the Company. Our measures of
     total segment operating earnings and total segment operating margin may
     be different from measures used by other companies.



ROCKWELL AUTOMATION, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in millions)
                                                
                                                     
                       Three Months Ended            Twelve Months Ended
                       September 30,                 September 30,
                       2012         2011            2012         2011
Sales                  $ 1,664.0     $ 1,654.3       $ 6,259.4     $ 6,000.4
Cost of sales          (1,009.8  )   (991.1    )     (3,736.7  )   (3,610.0  )
Gross profit           654.2         663.2           2,522.7       2,390.4
                                                                   
Selling, general
and administrative     (386.4    )   (388.1    )     (1,491.7  )   (1,461.2  )
expenses
Other income           2.0           (4.4      )     (5.0      )   (2.1      )
(expense)
Interest expense       (14.9     )   (14.6     )     (60.1     )   (59.5     )
Income from
continuing             254.9         256.1           965.9         867.6
operations before
income taxes
Income tax             (59.7     )   (54.3     )     (228.9    )   (170.5    )
provision
                                                                   
Income from
continuing             195.2         201.8           737.0         697.1
operations
                                                                   
Income from
discontinued           —            —              —            0.7       
operations
                                                                   
Net income             $ 195.2      $ 201.8        $ 737.0      $ 697.8   



ROCKWELL AUTOMATION, INC.
CONDENSED BALANCE SHEET INFORMATION
(in millions)
                                                        
                                                                
                                              September 30,     September 30,
                                              2012              2011
Assets
Cash and cash equivalents                     $  903.9          $   988.9
Short-term investments                        350.0             —
Receivables                                   1,187.3           1,063.4
Inventories                                   619.0             641.7
Property, net                                 587.1             561.4
Goodwill and intangibles                      1,158.3           1,170.6
Other assets                                  830.9            858.9
                                                                
Total                                         $  5,636.5       $   5,284.9
                                                                
Liabilities and Shareowners’ Equity
Short-term debt                               $  157.0          $   —
Accounts payable                              547.6             455.1
Long-term debt                                905.0             905.0
Other liabilities                             2,175.2           2,176.8
Shareowners’ equity                           1,851.7          1,748.0
Total                                         $  5,636.5       $   5,284.9



ROCKWELL AUTOMATION, INC.
CONDENSED CASH FLOW INFORMATION
(in millions)
                                                    
                                                       
                                                       Twelve Months Ended
                                                       September 30,
                                                       2012        2011
Continuing operations:
Operating activities:
Income from continuing operations                      $ 737.0       $ 697.1
Depreciation and amortization                          138.6         131.3
Retirement benefits expense                            105.9         100.9
Pension trust contributions                            (341.1  )     (184.7  )
Receivables/inventories/payables                       (24.1   )     (234.1  )
Compensation and benefits                              (67.0   )     16.9
Income taxes                                           117.9         95.7
Other                                                  51.5         20.6    
Cash provided by operating activities                  718.7        643.7   
                                                                     
Investing activities:
Capital expenditures                                   (139.6  )     (120.1  )
Acquisition of businesses, net of cash acquired        (16.2   )     (45.9   )
Purchases of short-term investments                    (487.5  )     —
Proceeds from maturities of short-term investments     137.5         —
Proceeds from sale of property and investments         2.6          5.1     
Cash used for investing activities                     (503.2  )     (160.9  )
                                                                     
Financing activities:
Net issuance of short-term debt                        157.0         —
Cash dividends                                         (247.4  )     (211.0  )
Purchases of treasury stock                            (259.4  )     (298.7  )
Proceeds from the exercise of stock options            49.0          174.0
Excess income tax benefit from share-based             18.5          38.1
compensation
Other financing activities                             (0.4    )     (0.3    )
Cash used for financing activities                     (282.7  )     (297.9  )
Effect of exchange rate changes on cash                (16.8   )     (5.8    )
                                                                     
Cash (used for) provided by continuing operations      (84.0   )     179.1
                                                                     
Discontinued operations:
Cash used for discontinued operations                  (1.0    )     (3.6    )
(Decrease) increase in cash and cash equivalents       $ (85.0 )     $ 175.5 
                                                                             
                                                                             

                          ROCKWELL AUTOMATION, INC.
                        OTHER SUPPLEMENTAL INFORMATION
                                (in millions)

Organic Sales

Our press release contains information regarding sales excluding the effect of
changes in currency and organic sales, which we define as sales excluding the
effect of changes in currency exchange rates and acquisitions. We believe
these non-GAAP measures provide useful information to investors because they
reflect regional and operating segment performance from our activities without
the effect of changes in currency exchange rates and/or acquisitions. We use
organic sales and sales excluding the effect of changes in currency as two
measures to monitor and evaluate our regional and operating segment
performance. We determine the effect of changes in currency exchange rates by
translating the respective period’s sales using the currency exchange rates
that were in effect during the prior year. When we acquire businesses, we
exclude sales in the current year for which there are no comparable sales in
the prior period. Organic sales growth is calculated by comparing organic
sales to reported sales in the prior year. Sales are attributed to the
geographic regions based on the country of destination.

The following is a reconciliation of reported sales to organic sales for the
three and twelve months ended September30, 2012 compared to sales for the
three and twelve months ended September30, 2011:

              
                 Three Months Ended September 30,
                 2012                                                                2011
                               Effect     Sales
                               of         Excluding     Effect of      Organic
                 Sales        Changes   Effect of    Acquisitions  Sales           Sales
                               in         Changes in
                               Currency   Currency
United           $ 816.9       $ 0.9      $ 817.8       $   (0.9  )    $ 816.9         $ 800.0
States
Canada           121.3         1.9        123.2         —              123.2           104.2
Europe,
Middle East,     324.5         41.7       366.2         —              366.2           343.5
Africa
Asia-Pacific     258.7         7.9        266.6         (0.2      )    266.4           260.4
Latin            142.6        15.9      158.5        —             158.5          146.2
America
Total            $ 1,664.0    $ 68.3    $ 1,732.3    $   (1.1  )    $ 1,731.2      $ 1,654.3

              
                 Year Ended September 30,
                 2012                                                                 2011
                               Effect of   Sales
                               Changes     Excluding     Effect of      Organic
                 Sales        in         Effect of    Acquisitions  Sales           Sales
                               Currency    Changes in
                                           Currency
United           $ 3,067.3     $ 3.3       $ 3,070.6     $  (2.3   )    $ 3,068.3       $ 2,917.8
States
Canada           464.3         9.4         473.7         —              473.7           396.2
Europe,
Middle East,     1,280.6       98.3        1,378.9       (33.1     )    1,345.8         1,267.6
Africa
Asia-Pacific     942.4         11.8        954.2         (1.3      )    952.9           910.6
Latin            504.8        43.1       547.9        —             547.9          508.2
America
Total            $ 6,259.4    $ 165.9    $ 6,425.3    $  (36.7  )    $ 6,388.6      $ 6,000.4
                                                                                          

The following table reconciles reported sales to organic sales for our
operating segments for the three and twelve months ended September30, 2012
compared to sales for the three and twelve months ended September30, 2011:

              
                 Three Months Ended September 30,
                 2012                                                                2011
                               Effect     Sales
                               of         Excluding     Effect of      Organic
                 Sales        Changes   Effect of    Acquisitions  Sales           Sales
                               in         Changes in
                               Currency   Currency
Architecture     $ 671.3       $ 30.1     $ 701.4       $   —          $ 701.4         $ 683.3
& Software
Control
Products &       992.7        38.2      1,030.9      (1.1      )    1,029.8        971.0
Solutions
Total            $ 1,664.0    $ 68.3    $ 1,732.3    $   (1.1  )    $ 1,731.2      $ 1,654.3

              
                 Year Ended September 30,
                 2012                                                                 2011
                               Effect of   Sales
                               Changes     Excluding     Effect of      Organic
                 Sales        in         Effect of                                  Sales
                               Currency    Changes in    Acquisitions   Sales
                                           Currency
Architecture     $ 2,650.4     $ 73.5      $ 2,723.9     $  —           $ 2,723.9       $ 2,594.3
& Software
Control
Products &       3,609.0      92.4       3,701.4      (36.7     )    3,664.7        3,406.1
Solutions
Total            $ 6,259.4    $ 165.9    $ 6,425.3    $  (36.7  )    $ 6,388.6      $ 6,000.4
                                                                                          
                                                                                          

                          ROCKWELL AUTOMATION, INC.
                        OTHER SUPPLEMENTAL INFORMATION
                                (in millions)

Free Cash Flow

Our definition of free cash flow, which is a non-GAAP financial measure, takes
into consideration capital investments required to maintain the operations of
our businesses and execute our strategy. We account for share-based
compensation under U.S. GAAP, which requires that we report the excess income
tax benefit from share-based compensation as a financing cash flow rather than
as an operating cash flow. We have added this benefit back to our calculation
of free cash flow in order to generally classify cash flows arising from
income taxes as operating cash flows.

In our opinion, free cash flow provides useful information to investors
regarding our ability to generate cash from business operations that is
available for acquisitions and other investments, service of debt principal,
dividends and share repurchases. We use free cash flow, as defined, as one
measure to monitor and evaluate performance. Our definition of free cash flow
may be different from definitions used by other companies.

The following table summarizes free cash flow by quarter:

             
               Quarter Ended
               Dec. 31,  March 31,  June 30,   Sept. 30,  Dec. 31,    March 31,  June 30,   Sept. 30,
               2010       2011        2011        2011        2011         2012        2012        2012
Cash
provided by
continuing     $ 12.6     $ 225.2     $ 224.7     $ 181.2     $ (189.0 )   $ 253.5     264.1       390.1
operating
activities
Capital
expenditures
of             (20.3  )   (22.6   )   (33.1   )   (44.1   )   (31.6    )   (30.9   )   (32.4   )   (44.7   )
continuing
operations
Excess
income tax
benefit from   12.1      23.6       2.1        0.3        9.8         7.0        0.5        1.2     
share-based
compensation
Free cash      $ 4.4     $ 226.2    $ 193.7    $ 137.4    $ (210.8 )   $ 229.6    $ 232.2    $ 346.6 
flow^1

   
     Free cash flow for the first quarter of 2012 and the fourth quarter of
^1   2011 include discretionary pre-tax contributions to the company’s U.S.
     pension trust of $300 million and $150 million, respectively.
     
     

Return On Invested Capital

Our press release contains information regarding Return On Invested Capital
(ROIC), which is a non-GAAP financial measure. We believe that ROIC is useful
to investors as a measure of performance and of the effectiveness of the use
of capital in our operations. We use ROIC as one measure to monitor and
evaluate performance. Our measure of ROIC may be different from that used by
other companies. We define ROIC as the percentage resulting from the following
calculation:

(a)Income from continuing operations, before interest expense, income tax
provision, and purchase accounting depreciation and amortization, divided by;

(b)average invested capital for the year, calculated as a five quarter
rolling average using the sum of short-term debt, long-term debt, shareowners’
equity, and accumulated amortization of goodwill and other intangible assets,
minus cash and cash equivalents, multiplied by;

(c)one minus the effective tax rate for the period.

ROIC is calculated as follows:

                                                    
                                                       Twelve Months Ended
                                                       September 30,
                                                       2012        2011
(a) Return
Income from continuing operations                      $ 737.0       $ 697.1
Interest expense                                       60.1          59.5
Income tax provision                                   228.9         170.5
Purchase accounting depreciation and amortization      19.8         19.8    
Return                                                 1,045.8      946.9   
(b) Average invested capital
Short-term debt                                        207.2         —
Long-term debt                                         905.0         904.9
Shareowners’ equity                                    1,881.5       1,709.7
Accumulated amortization of goodwill and               751.0         716.7
intangibles
Cash and cash equivalents                              (878.8  )     (922.7  )
Short-term investments                                 (232.5  )     —       
Average invested capital                               2,633.4      2,408.6 
(c) Effective tax rate
Income tax provision                                   228.9         170.5
Income from continuing operations before income        $ 965.9      $ 867.6 
taxes
Effective tax rate                                     23.7    %     19.7    %
(a) / (b) * (1-c) Return On Invested Capital           30.3    %     31.6    %
                                                                             
                                                                             

                          ROCKWELL AUTOMATION, INC.
                        OTHER SUPPLEMENTAL INFORMATION
                   (in millions, except per share amounts)

Adjusted Income and Adjusted EPS

Our press release contains financial information and earnings guidance
regarding Adjusted Income and Adjusted EPS, which are non-GAAP earnings
measures that exclude non-operating pension costs and their related income tax
effects. We define non-operating pension costs as defined benefit plan
interest cost, expected return on plan assets, amortization of actuarial gains
and losses and the impacts of any plan curtailments or settlements. These
components of net periodic benefit cost primarily relate to changes in pension
assets and liabilities that are a result of market performance; we consider
these costs to be unrelated to the operating performance of our business. We
believe that Adjusted Income and Adjusted EPS provide useful information to
our investors about our operating performance and allow management and
investors to compare our operating performance period over period. Our measure
of Adjusted Income and Adjusted EPS may be different from measures used by
other companies. These non-GAAP measures should not be considered a substitute
for income from continuing operations and diluted EPS.

The following is a reconciliation of income from continuing operations and
diluted EPS from continuing operations to Adjusted Income and Adjusted EPS:

                                        Year Ended September 30,
                             Fiscal 2013     2012       2011       2010
                             Guidance
Income from continuing                       $ 737.0     $ 697.1     $ 440.4
operations
Non-operating pension                        35.2        23.5        10.1
costs
Tax effect of
non-operating pension                        (12.6   )   (8.5    )   (3.6    )
costs
Adjusted Income                              $ 759.6    $ 712.1    $ 446.9 
                                                                     
Diluted EPS from             $5.00 -         $ 5.13      $ 4.79      $ 3.05
continuing operations        $5.40
Non-operating pension
costs per diluted share,     0.56            0.25        0.16        0.07
before tax
Tax effect of
non-operating pension        (0.21     )     (0.09   )   (0.06   )   (0.02   )
costs per diluted share
Adjusted EPS                 $5.35 -        $ 5.29     $ 4.89     $ 3.10  
                             $5.75
                                                                             
                                                                             

                          ROCKWELL AUTOMATION, INC.
                        OTHER SUPPLEMENTAL INFORMATION
                                (in millions)

Reconciliation of Segment Operating Earnings

Beginning in fiscal 2013, we are changing our definition of segment operating
earnings to exclude non-operating pension costs. Non-operating pension costs
consist of defined benefit plan interest cost, expected return on plan assets,
amortization of actuarial gains and losses and the impacts of any plan
curtailments or settlements. We will continue to include service cost and
amortization of prior service cost in the business segment that incurred the
expense.

The following is a reconciliation of reported segment operating earnings to
adjusted segment operating earnings excluding non-operating pension costs:

                                      
                                         Year Ended September 30,
                                         2012         2011         2010
Reported
Segment operating earnings
Architecture & Software                  $ 702.8       $ 659.1       $ 475.4
Control Products & Solutions             428.6        368.5        241.8   
Total segment operating earnings^1       $ 1,131.4    $ 1,027.6    $ 717.2 
                                                                     
Segment operating margin
Architecture & Software                  26.5      %   25.4      %   22.5    %
Control Products & Solutions             11.9      %   10.8      %   8.8     %
Total segment operating margin^1         18.1      %   17.1      %   14.8    %
                                                                     
Adjustment - Non-operating pension
costs
Segment operating earnings
Architecture & Software                  $ 11.6        $ 11.3        $ 3.4
Control Products & Solutions             20.9         9.9          6.2     
Total segment operating earnings^1       $ 32.5       $ 21.2       $ 9.6   
                                                                     
Adjusted
Segment operating earnings
Architecture & Software                  $ 714.4       $ 670.4       $ 478.8
Control Products & Solutions             449.5        378.4        248.0   
Total segment operating earnings^1       $ 1,163.9    $ 1,048.8    $ 726.8 
                                                                     
Segment operating margin
Architecture & Software                  27.0      %   25.8      %   22.6    %
Control Products & Solutions             12.5      %   11.1      %   9.0     %
Total segment operating margin^1         18.6      %   17.5      %   15.0    %
                                                                             

^1Total segment operating earnings and total segment operating margin are
non-GAAP financial measures. We believe that these measures are useful to
investors as measures of operating performance. We use these measures to
monitor and evaluate the profitability of the Company. Our measures of total
segment operating earnings and total segment operating margin may be different
from measures used by other companies.

Contact:

Rockwell Automation
Media Relations
John Bernaden, 414.382.2555
or
Investor Relations
Rondi Rohr-Dralle, 414.382.8510
 
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