Rockwell Automation (ROK)

[Investorman]

Rockwell Auto sees European growth accelerating
Tue Jun 3, 2008 11:07am EDT

BOSTON, June 3 (Reuters) - Rockwell Automation Inc (ROK.N: Quote, Profile, Research), which sells systems to help factories run more smoothly, expects sales growth in Europe to accelerate in the second half of its fiscal year, Chief Executive Keith Nosbusch said on Tuesday.

"In Europe last quarter, we had 2 percent organic growth and 10 percent acquisition growth, and we had targeted (organic) growth to be around 10 percent," Nosbusch said. "Going forward in the second half of the year, we believe we will get closer to that 10 percent number. The reason why is that we know some of our customers will have stronger buying in the second half of the year."

In comments to investors that were monitored over the Internet, Nosbusch said the Milwaukee-based company had added European salespeople whom it believed were becoming more productive in the second half.

Analysts expect Rockwell's earnings per share to increase 15 percent to $4.29 in the fiscal year ending in September, according to Reuters Estimates.

Rockwell shares were down 32 cents at $56.73 on the New York Stock Exchange. So far this year, they have fallen 18 percent, deeper than the 7.5 percent drop in the Standard & Poor's capital goods industry group index . (Reporting by Scott Malone; Editing by Lisa Von Ahn)