Rockwell Automation (ROK)

[Investorman]

TEXT-S&P comments on Rockwell Automation
January 22, 2003 11:21:00 AM ET


(The following statement was released by the rating agency)

NEW YORK, Jan 22 - Standard & Poor's Ratings Services said today that its ratings on Rockwell Automation Inc. (ROK)(A/Stable/A-1) were unaffected by the company's fiscal 2003 (year-end Sept. 30) first-quarter earnings report. Operating earnings were $94 million, compared with $80 million in the same quarter of 2002, driven by improved performance at Control Systems with margins of 10.9%, compared with 9.3% in 2002. The company continues to face an uncertain economic environment and reported year over year declines in sales and operating income in its other business segments. However, leading market positions and management's conservative financial policies should enable the company to maintain a credit profile appropriate for the current ratings. Cash from operations was $104 million up from $87 million in 2002's first quarter and Rockwell expects to generate around 20% earnings growth for fiscal 2003, if end markets continue to be stable. REUTERS