Rockwell Automation (ROK)

[Investorman]

Rockwell Automation Provides Third Quarter Guidance

MILWAUKEE--(BUSINESS WIRE)--June 25, 2008--Rockwell Automation, Inc. (NYSE: ROK) today announced that it expects to report third quarter diluted earnings per share of $0.93 - $1.00. Given the expected third quarter earnings, and what appear to be less favorable market conditions in the U.S. and Europe, the Company no longer believes that full year EPS will fall within the previous annual guidance range of $4.25 - $4.45.

Fiscal 2008 third quarter revenue excluding currency translation is expected to be approximately 7 - 9 percent higher than the third quarter of fiscal 2007, with foreign currency translation anticipated to add an additional 5 percentage points.

Revenue for the month of April was consistent with original expectations. However, for the past several weeks, the Company has experienced slower than expected growth in the U.S. and Europe, primarily in its product businesses. The third quarter organic growth rates in the U.S. and Europe are expected to be in the low single digits versus the year ago period. Consistent with expectations, the Company has continued to experience strong growth in Asia Pacific and Latin America.

In the third quarter, the Company has seen continued strong revenue growth in its solutions and services businesses within the Control Products & Solutions segment. However, in the higher-margin Architecture & Software segment, the expected revenue growth has not occurred.

The Company is currently evaluating the market outlook for the balance of the year along with appropriate cost control actions and will comment further during the third quarter earnings call.

Keith D. Nosbusch, chairman and chief executive officer, said, I continue to have confidence in the long-term growth prospects for this business. It appears that market growth is slowing in two key regions and we will deal with that reality. We remain committed to delivering appropriate profitability while preserving our investments in future growth opportunities and maintaining our technology leadership.