By Christopher Hinton
NEW YORK (Dow Jones) - Rockwell Automation Inc. reported a 25%
slump in its fiscal first-quarter profit and lowered its 2008
forecast as customers closed down their factories amid the
deteriorating economy.
"After a very solid October, we experienced a severe decline in
customer demand during the second half of the quarter," said
Chairman and Chief Executive Keith Nosbusch. "Deteriorating
economic, financial and credit market conditions affected all
regions and most industries, aggravated by an unusual number of
customer plant shutdowns."
Shares of Rockwell Automation closed Friday at $26.04, off 4.3%.
Since mid-September when the recession took hold and financial
markets scaled back their lending, the stock has fallen more than
50%.
For the recent quarter, the Milwaukee maker of manufacturing
power and control systems said it earned $118 million, or 83 cents
a share, compared to $157 million, or $1.04, in the same period a
year ago.
Sales at Rockwell Automation (ROK) fell 11% to $1.19 billion
from $1.33 billion, with an unfavorable currency exchange
contributing six percentage points to the decline.
Income from continuing operations was 81 cents a share. Analysts
polled by FactSet Research estimated, on average, earnings per
share of 83 cents and sales of $1.26 billion.
For fiscal 2009 Rockwell lowered earnings guidance downward to a
range of $1.55 to $2.25 a share, from its prior view of $3.10 to
$3.60 a share.
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