Rockwell Automation (ROK)

[Investorman]

Rockwell Automation posts better-than-expected profit
Mon Nov 10, 2008 5:48pm EST

* Rockwell Automation net profit falls 24 percent

* Profit of $1.08/shr ex-charges tops $1.01 consensus

* Revenue rises 8 percent

* Shares little changed in after-hours trade (Adds company details)

BOSTON, Nov 10 (Reuters) - Rockwell Automation Inc (ROK.N: Quote, Profile, Research, Stock Buzz) posted a better-than-expected quarterly profit, as it said it was managing its way through a bleak economic environment that has already prompted it to lay off 3 percent of its staff.

The U.S. manufacturer of factory automation systems said on Monday fourth-quarter net profit fell to $125.6 million, or 87 cents per diluted share, from $165.2 million, or $1.08 per share, a year earlier.

Factoring out $46.7 million in pretax special charges, profit would have been $1.08 per share, compared with earnings from continuing operations of $1.07 per share a year earlier, the company said.

The $1.08 per share profit topped analysts' average expectation of $1.01 per share, according to Reuters Estimates.

Revenue was up 8.3 percent, to $1.48 billion.

"It's pretty much where we're supposed to be, but it's not this year but next year that's the problem," said Eli Lustgarten, analyst at Longbow Research.

Rockwell makes a diversified list of manufacturing products including control platforms, software, input/output devices and communication networks and also makes software to help companies integrate their operations.

The company said it would discuss its outlook for fiscal 2009 in a conference call on Tuesday morning.

The Milwaukee-based company earlier this year cut its profit forecast, citing fading demand for its software products, which offer a higher profit margin than its traditional control systems.

In September, it said it would be laying off 3 percent of its staff, about 600 people, to cut costs.

Rockwell shares are down about 64 percent so far this year, a steeper drop than the 46 percent decline of the Standard & Poor's capital-goods index. .GPSIC