Industrial automation solutions provider Rockwell Automation, Inc. (ROK), Wednesday, reported a decline in its first-quarter profit, reflecting lower revenues. On a continuing operations basis, earnings per share topped Wall Street analysts' forecast. The company lifted its fiscal 2010 earnings and sales outlook in light of improved revenue baseline.
Milwaukee, Wisconsin-based Rockwell provides industrial automation power, control, and information solutions primarily in the U.S. through two segments, namely Architecture & Software, and Control Products & Solutions. The company employs about 20,000 people serving customers in more than 80 countries.
The company reported first-quarter net income of $76.6 million or $0.53 per share, lower than $118.4 million or $0.83 per share last year.
Income from continuing operations was $77.8 million or $0.54 per share, down from $115.6 million or $0.81 per share in the same quarter of fiscal 2008.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share. Analysts' estimates typically exclude special items.
For the preceding fourth quarter, the company had posted net income of $28.9 million or $0.20 per share.
Quarterly total sales declined 10% to $1.07 billion from $1.19 billion in the prior-year quarter. Seven analysts had a consensus revenue estimate of $1.05 billion. Organic sales slid 15.5%, offset in part by growth of approximately 4 percentage points from currency translation and 1 percentage point from acquisitions.
On a sequential basis, Rockwell's first-quarter revenue edged down 1% from $1.074 billion in the fourth quarter of fiscal 2009.
The company's Architecture & Software business generated sales of $469 million, down 7% from $596.4 million in the prior-year quarter. Organic sales declined 12.7%, partially offset by growth of approximately 5 percentage points from currency translation.
Control Products & Solutions' sales declined 12% to $598.5 million from $682.8 million a year earlier. Organic sales were down 17.6%, partially offset by growth of approximately 4 percentage points from currency translation and 2 percentage points from acquisitions.
Looking forward, Rockwell currently expects fiscal 2010 earnings per share in the range of $2.00 - $2.40 on revenues of $4.4 billion - $4.6 billion. The company previously estimated full-year 2010 earnings per share of $1.25 to $1.75 on revenue of $4.1 billion to $4.4 billion.
Analysts expect the company to earn $1.74 per share with revenue estimate of $4.34 billion.
Commenting on the outlook, Keith Nosbusch, chairman and chief executive officer of Rockwell Automation, stated, "Our first quarter performance and continued improvement in the global economy seem to indicate that we are at the early stage of a recovery. However, high unemployment, historically low levels of capacity utilization and a very cautious capital spending outlook create uncertainty as to the shape of the recovery in manufacturing."
Amongst others in the sector, Emerson Electric Co. (EMR) is expected to report a profit of $0.42 per share for the first quarter of fiscal 2010 when it announces results on February 2. Analysts also forecast revenues of $4.69 billion
ABB Ltd. (ABB) is set release its fourth-quarter results on February 18. Wall Street analysts are of the view that the company will earn $0.27 per share on revenues of $8.31 billion.
Another peer, Siemens AG (SI) has reported an increase in first-quarter net profit, reflecting lower costs and a business sale gain, despite lower revenues from all businesses and decrease in orders. The Munich, Germany-based company's net income attributable to shareholders was EUR 1.48 billion or EUR 1.68 per share, compared with EUR 1.20 billion or EUR 1.39 per share in the prior-year period. Total group revenues declined 12% to EUR 17.35 billion from EUR 19.63 billion in the first quarter of last year.
ROK closed Tuesday's trading at $46.16. In pre-market trading, the company's shares dropped 1.03% or $0.48 to $46.15.
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