Tuesday, Rockwell Automation, Inc. (ROK), a provider of industrial automation power, control and information solutions, reported a decline in its net income for the third quarter of fiscal 2008, despite a 15% increase in revenues. The company said "macro-economic conditions in Europe and the U.S. are weakening," and lowered its outlook for the full year.
Third quarter net income declined to $152.6 million, or $1.03 per share, from $164.2 million, or $1.05 per share, in the same period last year. However, earnings for the quarter beat Street estimate of $0.97 per share.
Net sales for the quarter grew 15% to $1.48 billion from $1.28 billion in the year-ago quarter and topped analysts' estimate of $1.43 billion.
Architecture and software segment sales increased 7% during the quarter with acquisitions contributing 1 percentage point and foreign currency translation 5 percentage points. Sales of control products and solutions segment increased 22% with 6 percentage points contribution from acquisitions and 5 percentage points from foreign currency translation.
For the nine-month period, the Milwaukee, Wisconsin-based company reported a net income of $452 million, or $3.03 per share, compared to $1.32 billion, or $8.07 per share, last year. Nine months results for the last year included income from discontinued operations of $917.1 million, or $5.60 per share.
Net sales in the nine month period increased to $4.21 billion from $3.63 billion in the previous fiscal.
Commenting on the outlook, Keith Nosbusch, chairman and chief executive officer, said, "For the remainder of the fiscal year we expect to see continued strength in Asia-Pacific and Latin America as well as in resource-based industries. However, macro-economic conditions in Europe and the U.S. are weakening. We have begun to see a change in buying behavior by some of our customers in consumer related industries, including project delays and curtailed capital spending."
Rockwell reduced its fiscal 2008 earnings to a range of $4.00 to $4.10 per share, down from the previous range of $4.25 to $4.45. Wall Street analysts currently expect earnings of $4.02 per share for the full year.
ROK is currently trading at $44.65,up 1.02, or 2.34% on NYSE.
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