Rockwell Automation (ROK)

[Investorman]

UPDATE 3-Rockwell Automation profit beats estimates
Tue Jul 28, 2009 4:34pm EDT

* EPS 23 cents; Wall Street view 19 cents
* Rev $1.01 billion, down 31 pct
* Affirms year EPS view of $1.40 to $1.70
* Shares down nearly 3 percent

NEW YORK, July 28 (Reuters) - Rockwell Automation Inc
(ROK.N: Quote, Profile, Research, Stock Buzz), a maker of systems that make factories run more smoothly, reported a smaller-than-expected decline in quarterly profit on Tuesday and said it appeared to be approaching the bottom of the economic cycle. Rockwell said sales increased from the fiscal second quarter in its architecture and software segment but were down in its bigger control-products segment, which generates most of its revenue from engineering solutions rather than products, and tends to lag any economic recovery. "If the revenue patterns continue where they are now, we believe we're either at, or will be shortly at, the trough in our earnings," CEO Keith Nosbusch told Reuters in an interview.

He added that global industrial production was recovering, or
at least slowing its rate of decline. Nosbusch said the company wanted to avoid being "too aggressive" with its earnings forecast, since it had limited visibility into September demand, when factories in Europe ramp up after holidays, so it kept its forecast unchanged.

Rockwell shares, which had jumped 30 percent since July 8, were down $1.14 or 2.9 percent at $38.47 in late morning trading on the New York Stock Exchange. Net earnings fell 79 percent to $32.8 million, or 23 cents per share, in the fiscal third quarter ended June 30, from $152.6 million, or $1.03 per share, a year earlier. Analysts on average expected profit of 19 cents per share, according to Reuters Estimates.

The company, whose rivals include Siemens AG (SIEGn.DE: Quote, Profile, Research, Stock Buzz) and Mitsubishi Electric Corp (6503.T: Quote, Profile, Research, Stock Buzz), said revenue fell 31 percent to $1.01 billion. Wall Street had expected $1.03 billion. Milwaukee-based Rockwell affirmed its April forecast for full-year earnings of $1.40 to $1.70 per share. Analysts, on average, expect $1.49 per share.

(Reporting by Nick Zieminski; editing by Jeffrey Benkoe, John
Wallace and Matthew Lewis)