Rockwell Automation (ROK)

[Investorman]

Rockwell Auto reaffirms fiscal '10 results outlook
8:28am EST

NEW YORK, Dec 10 (Reuters) - Rockwell Automation Inc <ROK.N> reaffirmed on Thursday its sales and profit forecast for fiscal 2010, citing improving order rates and improving industrial production, but noted that customers remain cautious.

Rockwell, a provider of systems to make factories run more efficiently, said it expects 2010 sales of $4.1 billion to $4.4 billion and earnings per share of $1.25 to $1.75.

Rockwell expects sales to be down this fiscal year ending Sept. 30, offset by the benefit of a weaker U.S. dollar. The company generated about half of its 2009 sales of $4.3 billion outside the United States.

Analysts are looking for the company to earn $1.70 per share in 2010 on sales of $4.33 billion, according to Thomson Reuters I/B/E/S.

"We've seen improvement in industrial production rates and PMI toward the end of the year, Chief Executive Keith Nosbusch told an investor conference, referring to purchasing managers indexes.

"(But) our customers remain cautious in their outlook for their capital spending budgets. We do not expect a sharp recovery."

Nosbusch said the company is looking to expand in so-called process industries, such as oil and gas, chemicals and the production of consumer goods like toothpaste.

The company also sees automation software as an area of growth and said it expects emerging markets to adopt factory automation systems at a much faster rate than developed economies. (Reporting by Nick Zieminski, editing by Gerald E. McCormick)