Replies to post #334 on Rockwell Automation (ROK)

[Investorman]

I think it was a bit oversold last week and we are seeing the bounceback from that. Somebody apparently noticed that ROK is still making money hand over fist.

[Investorman]

Rockwell sees 20 pct '07 sales growth in China
Fri Aug 24, 2007 1:55AM EDT

BEIJING, Aug 24 (Reuters) - Manufacturer Rockwell Automation Inc. (ROK.N: Quote, Profile, Research), expects 20 percent revenue growth in China this year and in 2008, boosted by infrastructure projects and fast growing consumer industries, it said on Friday.

"We are on target for probably a 20 percent year-on-year growth rate at the end of this year and through 2008," Bruce Quinn, vice president and head of China operations for Rockwell, told Reuters in a telephone interview.

"Rockwell is doing very well here in China, we are happy."

That growth would double the 10 percent revenue growth that the company expects globally this year, and follows the double-digit growth it has posted in China over the past four years.

Rockwell's businesses on the mainland run from its traditional power generation, steel and infrastructure-related projects, to fast-growing consumer industries such as automobiles, pharmaceuticals and healthcare, said Quinn.

Rockwell's main rivals are Mitsubishi Electric Corp. (6503.T: Quote, Profile, Research) and Siemens AG (SIEGn.DE: Quote, Profile, Research).

Rockwell's profit rose 10 percent to $164.2 million in the most recent quarter, helped by strong foreign demand for its industrial control systems. (US$=7.59 yuan)

[Investorman]

$80 Target on Buy-Rated Rockwell
Monday September 10, 11:57 am ET
By Zacks Equity Research


Lately, strength at large-cap robotics company Rockwell Automation (NYSE: ROK - News) has provided investors with a bit of good news over the past few months. Zacks senior analyst Abdul Saleh explains why there\'s more where that came from for investors who buy shares of ROK now:


\'Rockwell Automation is the world\'s largest industrial automation company, providing power, control and information solutions to improve manufacturing productivity. March quarter top-line met consensus estimates, while the bottom line exceeded expectations. Strong segment EBIT margins contributed $0.08 upside to EPS, while a favorable tax rate added another $0.04 to the bottom line.


\'Forward guidance indicates that revenue is expected to increase 10% in fiscal 2007. The Power systems division has been divested for $1.8 billion. This has the impact of raising margins. We believe that the market has not yet impounded the recent attractive growth and earnings rates and is instead focusing on the automobile segment. Consequently, we are reiterating our Buy rating on the shares.


\'Over the past five quarters, the company\'s financial performance has benefited from a number of items, including a falling U.S. dollar, one-time benefits from divested organizations and one-time tax benefits. We do think the current growth rate is sustainable, especially given the fact that the business is highly correlated to the U.S. manufacturing base.\'

[Investorman]

Rockwell Automation to expand its global footprint
Firm looks to acquisitions to enter new markets and fill in expertise gaps
By Christopher Hinton, MarketWatch

Last Update: 12:11 PM ET Sep 11, 2007

NEW YORK (MarketWatch) -- Acquisitions will continue to play a special role at Rockwell Automation Inc., filling expertise gaps and expanding the maker of industrial automation and control systems' global footprint, Chief Executive Keith Nosbusch said Tuesday.

Less than half of the Milwaukee-based company's sales come from overseas, but that should increase over the next several years as Rockwell Automation moves further away from its earlier dependence on the U.S. automotive industry, Nosbusch said at a Morgan Stanley conference.
In the past year, the company saw robust growth despite a U.S. economic slowdown and Detroit's slumping automotive industry, he said.

The company has been boosted by strategic acquisitions such as its purchase of U.K.'s Industrial Control Services Group Ltd. in July, which provides process control safety solutions to various manufacturers.

"We're moving into a much broader set of industries," Nosbusch said. "Acquisitions play an important role; they fill in the technology gaps, expand our market and add to domain expertise, and we view acquisitions as a bolt-on type of capability."

Asked about the possibility of a joint venture with a software company such as Oracle or SAP, Nosbusch nixed the idea, saying that merging the unique technology required for a factory floor isn't possible with the off-the-shelf tools often offered by the large software companies.
"There is a fundamental difference in how their applications are run that translates into no significant contribution from a [joint venture]," he said. Factory equipment is "unique from plant to plant, line by line."

Rockwell Automation said it provides solutions to benefit manufacturers in four ways: getting products to markets faster, reducing costs, optimizing assets and minimizing manufacturing risk through system security and safety.

[Investorman]

Rockwell to buy Pavilion Technologies
Thursday October 25, 10:17 am ET


Rockwell Automation Inc. has agreed to buy Pavilion Technologies Inc., a privately held company that provides advanced process control, production optimization and environmental compliance products for process and hybrid industries.
Terms of the transaction were not disclosed.

Pavilion Technologies, based in Austin, Texas, serves major customers in consumer products, oil and gas, chemicals and other process industries.

The acquisition expands Rockwell's process automation business and broadens its capabilities to serve the global market, said Steven Eisenbrown, senior vice president of the architecture and software segment of Milwaukee-based Rockwell Automation (NYSE: ROK - News), a provider of industrial automation systems and controls.

[Investorman]

Rockwell Automation Reports Fourth Quarter and Full Year 2007 Results
Thursday November 8, 7:00 am ET


MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK - News):
Diluted EPS from continuing operations of $1.07 in the quarter
Revenue growth of 15 percent in the quarter, including 8 percent organic growth
Segment operating earnings growth of 21 percent in the quarter
Return on invested capital increased by 2 points to 24 percent
Company provides guidance for fiscal 2008 diluted EPS of $4.25 - $4.45

Rockwell Automation, Inc. (NYSE: ROK - News) today reported fiscal 2007 fourth quarter net income of $165.2 million ($1.08 per share) compared to net income of $165.8 million ($0.94 per share) in the fourth quarter of 2006. Income from continuing operations for the fourth quarter of 2007 was $163.8 million ($1.07 per share) compared to $156.8 million ($0.89 per share) in the fourth quarter of 2006, which included a gain on sale of investment ($0.07 per share). Sales in the quarter were $1,370.5 million, up 15 percent compared to $1,194.0 million in 2006. Foreign currency translation contributed 4 percentage points and acquisitions contributed 3 percentage points to the growth rate. Segment operating earnings were $275.2 million, up 21 percent compared to $227.9 million in 2006. Segment operating margin of 20.1 percent was 1.0 point higher than the fourth quarter of 2006. Fourth quarter 2007 free cash flow from continuing operations, which excludes tax payments related to the gain on the Power Systems sale, was $185.3 million, or 113 percent of income from continuing operations. Return on invested capital expanded 1.9 percentage points to 24.1 percent.

Free cash flow, organic growth and return on invested capital are non-GAAP measures that are defined in the attachments to this release under “Other Supplemental Information”.

Full Year 2007

Full year 2007 net income was $1,487.8 million ($9.23 per share) including:


Special charges of $43.5 million ($27.7 million after tax, or $0.17 per share) included in continuing operations; and
An after-tax gain of $868.2 million ($5.39 per share) related to the Power Systems divestiture and after-tax income of $50.3 million ($0.31 per share) related to Power Systems results and other discontinued operations activities.
Income from continuing operations for the year excluding special charges was $597.0 million ($3.70 per share). This result compares to income from continuing operations before accounting change and gain on sale of investment of $517.3 million ($2.87 per share) in 2006. Sales for the full year were $5,003.9 million, up 10 percent compared to $4,556.4 million in fiscal 2006. Foreign currency translation added 3 percentage points and acquisitions added 1 percentage point to the growth rate. Segment operating earnings for fiscal 2007 were $984.7 million, up 13 percent compared to $873.8 million in 2006. Full year 2007 free cash flow from continuing operations, which excludes tax payments related to the gain on the Power Systems sale, was $531.0 million, or 93 percent of income from continuing operations.

Commenting on the results, Keith D. Nosbusch, chairman and chief executive officer, said, “Our strong performance in the fourth quarter and the second half of the year demonstrated our ability to execute on our growth and performance strategy, again validating the continued strength of our business model. In another excellent year for Rockwell Automation, we achieved 10 percent revenue growth, increased segment operating margins to nearly 20 percent and expanded return on invested capital another 2 points to 24 percent. I am extremely proud of the efforts of our leadership team and employees in delivering these results.”

Outlook

Commenting on the outlook, Nosbusch added, “Looking ahead, we continue to see strength in customer demand in Europe and emerging markets. We believe our investments in technology leadership, expanded served markets and stronger global presence are creating more worldwide opportunities for growth than ever before, despite a deceleration in the rate of manufacturing growth in the North American market. The ongoing diversification of our revenue base, combined with our recent acquisitions, cause us to be optimistic that 2008 will be another good year for Rockwell Automation. We remain intensely focused on executing our growth and productivity initiatives.”

The Company’s guidance for 2008 is summarized as follows:


Revenue growth of 10 - 12 percent
EPS of $4.25 - $4.45
Free cash flow of approximately 95% of net income

[Investorman]

UPDATE 1-Rockwell Automation cont ops profit up
Thu Nov 8, 2007 7:39am EST
(Adds revenue, forecast)

BOSTON, Nov 8 (Reuters) - Rockwell Automation Inc (ROK.N: Quote, Profile, Research) said on Thursday quarterly profit from continuing operations -- which factors out the effect of the sale of a large unit -- rose on solid demand for its industrial automation systems.

The manufacturer reported fourth-quarter profit from continuing operations of $163.8 million, or $1.07 per share, compared with $156.8 million, or 89 cents per share, a year earlier.

Net profit was $165.2 million, or $1.08 per share, compared with $165.8 million, or 94 cents, a year earlier.

Revenue came to $1.37 billion, up 14.8 percent from $1.19 billion a year earlier.

Rockwell said it expects to report a 2008 profit of $4.25 to $4.45 per share on revenue growth of 10 to 12 percent.

The Power Systems unit, which Rockwell sold this year to Baldor Electric Co (BEZ.N: Quote, Profile, Research), last year accounted for 18 percent of revenue. (Reporting by Scott Malone; editing by Mark Porter/John Wallace)