Rockwell Automation Inc.'s (ROK) fiscal second-quarter profit
rose 21% on double-digit revenue growth in the company's two main
segments.
Results beat analysts' expectations, and the company raised the
bottom end of its 2011 earnings forecast by 10 cents to $4.40 to
$4.60 a share. It also lifted its revenue outlook to $5.7 billion
to $5.8 billion, up from its February projection of $5.5 billion to
$5.7 billion.
The maker of factory-automation equipment and software is seeing
conditions improve, especially on results from operations in China
and India.
"Our strong revenue performance in the first half, continued
strength in the industrial sector and an increased tailwind from
currency are positives as we enter the third quarter," Chairman and
Chief Executive Keith Nosbusch said. "However, events such as the
earthquake in Japan and unrest in the Middle East and North Africa
have added uncertainty to the global macroeconomic
environment."
For the quarter ended March 31, Rockwell posted a profit of
$166.4 million, or $1.14 a share, up from $137 million, or 95 cents
a share, a year earlier. Revenue rose 26% to $1.46 billion, 2
percentage points of which came from favorable currency
effects.
Analysts polled by Thomson Reuters expected a per-share profit
of $1.12 on $1.41 billion in revenue.
Gross margin narrowed to 39.4% from 40.6%.
Revenue rose 21% in the company's architecture and software
business, while its larger control-products unit posted a 30% sales
jump.
Shares closed Tuesday at $97.84 and were inactive premarket. The
stock has gained 60% over the past 12 months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com