Replies to post #300 on Rockwell Automation (ROK)

[Investorman]

It doesn't make much sense. They keep making more money each quarter and the future forcast doesn't look that bad. Maybe ROK should stop issuing good earnings reports and then everyone would keep buying it.

[Investorman]

ROK back up over $60 again.

[Investorman]

Rockwell buys Irish engineering firm
Thursday February 1, 1:43 pm ET

Rockwell Automation Inc. said Thursday that it has purchased ProsCon Holdings Ltd., a privately held engineering firm in Ireland, for an undisclosed price.
Milwaukee-based Rockwell said ProsCon provides process technology, control systems and information technology services primarily to major customers in the pharmaceutical and biotechnology markets.

ProsCon is based in Cork, Ireland, with an office in Dublin. Its management team and its employees will join the Rockwell Automation global solutions team and continue to serve their customers locally and around the world.

[Investorman]

Rockwell approves $1B stock repurchase; Davis retires
Wednesday February 7, 5:42 pm ET

Rockwell Automation Inc. said Wednesday that its board has authorized the repurchase of an additional $1 billion worth of its common stock.
The authorization follows the completion of a pair of share buyback plans approved last September and December that allowed for the repurchase of a total of 12 million shares. Both of those programs have been completed.

The current authorization would allow the firm to repurchase more than 16 million shares, if the stock was purchased at its Tuesday closing price of $62.42. Shares closed up 75 cents Wednesday at $63.17.

Rockwell also said that former Rockwell chairman and chief executive officer Don Davis retired from the board of directors at the annual meeting Wednesday, which reduces the number of directors to nine.

[Investorman]

This new repurchase program is for 10% of the total shares outstanding.

[Investorman]

Rockwell Automation eyes 20 pct Asia growth-CEO
Thu Feb 8, 2007 10:55 AM ET



By Scott Malone

BOSTON, Feb 8 (Reuters) - Diversified manufacturer Rockwell Automation Inc. <ROK.N> aims to return to 20 percent revenue growth in Asia, the company's top executive said on Thursday.

When Rockwell reported results for its first fiscal quarter last month, the maker of systems that help factories run more smoothly said Asia-Pacific sales were up 5 percent in the quarter, factoring out changes in exchange rates, below its own target.

"I have not been satisfied with the performance in Asia ... this growth rate has decelerated over the last six quarters to an unacceptable level," said Keith Nosbusch, Rockwell's chairman and chief executive, in a briefing to investors that was monitored via the Internet.

"We outgrew our infrastructure and capabilities," Nosbusch continued. "Being successful in Asia is critical to our strategy. We must return to 20 plus percent growth."

The company said it was focusing particularly on setting its China operations back on a more aggressive growth track.

Rockwell shares traded as low as $56.73, a three-month-low, in the days that followed the earnings report. They've since climbed back to $63.16, off 1 cent on the New York Stock Exchange on Thursday.

They are up 3.5 percent for the year, outpacing the 2.4 percent rise in the Standard & Poor's capital goods index. <.GSPIC>

The Milwaukee-based company confirmed its fiscal 2007 profit target of $3.70 to $3.90 per share, with sales up 7 percent to 8 percent. Analysts, on average, expect profit of $3.66 per share, according to Reuters Estimates.

Rockwell on Wednesday said it would buy back $1 billion worth of its stock, following the sale earlier this year of its power systems business.

[Investorman]

Surprise Exit Of CFO Hammers Rockwell Shares
04.05.07, 5:00 PM ET


Rockwell Automation shares plunged more than 5% Friday afternoon after the company announced the sudden resignation of its chief financial officer, who was believed to be prepping the company as a takeover candidate.

James V. Gelly left to pursue other opportunities, the company said in a statement, but he will stay on board for the next few months as an adviser. Senior Vice President Theodore Crandall will serve as interim CFO until the company finds a replacement.

"I am pleased to have had the opportunity to serve as the company's CFO and am confident of the organization's great success. Going forward, I am committed to working closely with Ted and the management team to facilitate a smooth transition," Gelly said in a statement.

Calling the departure, a "surprise," J.P. Morgan analyst Stephen Tusa downgraded Rockwell from "buy" to "neutral" on Friday, with a price target of $61.53. The "lack of detail is troubling," Tusa said in a note. "There is little information about specific reasons for the change, [which] raises questions about the strategic direction of the company. We think it's prudent to take a step back and re-evaluate once we have more information around the implications of the departure."

Among analysts and investors, Gelly was highly respected for his ability to enhance cost productivity, according to Christopher Kotowicz, an analyst for A.G. Edwards & Sons. Many investors believed that Gelly was prepping the company to be a takeover candidate. His departure may indicate that the company has abandoned plans to put itself up for sale and may be poised to take on long-term investments.

"There was a negative reaction today, because Gelly was associated with the perception that the company was turning itself into an interesting target for a larger company," Kotowicz said in an interview. "It sounds like there was an internal conflict -- do we cut costs or grow the business -- and they decided to grow the business.

The major industrial automation products supplier's shares fell 5.6%, or $3.46, to close at $58.07.

Gelly, who has held senior positions at Honeywell, AlliedSignal and General Motors, joined Rockwell in January 2004. During Gelly's tenure, the stock surged more than 120%, from $35 in January 2004 to as high as $78 in April 2006, but it has floated around $60 since late 2006.