DOW JONES NEWSWIRES
Rockwell Automation Inc. (ROK) said it will forfeit $1.8 million
in profit as part of a settlement with the Securities and Exchange
Commission tied to charges that it violated provisions of the U.S.
Foreign Corrupt Practices Act in 2006 and earlier.
The maker of factory-automation equipment and software also will
pay a $400,000 fine plus interest.
Shares were down 2.1% at $85.18 in recent trading. The stock is
up by more than one-third in the past year.
The company in November 2006 said it was reviewing actions that
involved payments for non-business travel expenses and other
business arrangements involving potentially improper payment
methods for legitimate business expenses. Rockwell voluntarily
disclosed the review to the SEC in 2006.
The charges also include earlier alleged incidents at a
subsidiary in China that was sold in a larger $1.8 billion sale of
its Power Systems business to Baldor Electric Co. (BEZ) in early
2007.
The Foreign Corrupt Practices Act prohibits, among other things,
U.S. companies from bribing foreign officials in order to obtain
business.
"These incidents, while isolated, have led us to heighten our
vigilance and further improve our training," Chairman and Chief
Executive Keith D. Nosbusch said.
Rockwell last week reported that its fiscal second-quarter
profit rose 21% on double-digit percentage growth at its
architecture and software business and its control-products
unit.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com