Rockwell Automation (ROK)

[Investorman]

Rockwell Automation undertakes restructuring actions; expects FY09 savings of ~ $75 mln (ROK) 37.34 +2.35 :

Co announces restructuring actions designed to better align resources with growth opportunities and reduce costs in light of current and anticipated market conditions. The restructuring is the result of a comprehensive analysis of the co's cost structure and is expected to generate cost savings of ~ $75 mln in fiscal 2009, growing to $85 mln in fiscal 2010.

In connection with these actions the co will incur a pre-tax charge in the fourth quarter of FY08 of ~ $50 mln, which was not included in previous fiscal 2008 earnings guidance. Keith D. Nosbusch, chairman and chief executive officer, said, "These actions are consistent with the cost management approach we outlined in July".

The restructuring includes streamlining administrative and operations functions, realigning selling resources to the highest growth opportunities and consolidating business units. The restructuring headcount reductions, primarily in selling, general and administrative functions, equate to ~ 3% of the co's global workforce.