Milwaukee-based Rockwell Automation Inc. has reached a definitive agreement to acquire Incuity Software, Inc., a privately held company that is a leading supplier of Enterprise Manufacturing Intelligence (EMI) software. Headquartered in Mission Viejo, Calif., Incuity manufactures software that provides real-time intelligence for business decision support to improve operations and reduce production waste by providing valuable management insight into a company’s operations. Financial terms of the transaction were not disclosed.
"This acquisition is a key milestone in the continued expansion of our FactoryTalk software suite," said Kevin Roach, vice president of Rockwell Software. "Their newest software, IncuityEMI 2.6, easily integrates many disparate information sources from production operations and other enterprise systems. IncuityEMI 2.6 delivers unique insights into enterprise performance and key operational metrics, and empowers personnel to drill down and analyze the root causes associated with manufacturing problems. Combining Incuity’s capabilities with the FactoryTalk integrated production management and performance suite will create tremendous value for our customers."
Rockwell’s fiscal second quarter net income dropped to $142.8 million, or 96 cents per share, from $729.3 million, or $4.45 per share in the same period a year ago. Last year’s second quarter included profit from Rockwell’s discontinued power systems business of $622.2 million, or $3.80 per share. The company’s total sales in the quarter grew to $1.4 billion from $1.2 billion a year earlier.
Keith Nosbusch, chairman and chief executive officer of Rockwell, said, "We delivered solid top line results, with strong revenue growth in the United States, Asia and Latin America offsetting lower than expected organic growth in Europe. We continued to benefit from investments in technology leadership, expanded served markets and stronger global presence. EPS grew 17 percent, despite operating margins somewhat lower than expected due to revenue mix and currency impacts. We remain intensely focused on sustaining above market revenue growth, diversifying our revenue base and driving productivity."
Commenting on the company’s outlook, Nosbusch said, "Customer capital spending and project activity remain firm at this time. Looking forward, we expect continued strength in emerging economies, steady demand in the United States and improved performance in Europe. While we continue to acknowledge that there is significant uncertainty in the economic environment, particularly in the United States, we have not seen a fundamental change in customer demand for our products, services or solutions. We are optimistic regarding our growth prospects and ability to execute. Assuming business conditions in the industrial sector remain relatively stable, we are reaffirming EPS guidance for 2008 of $4.25-$4.45."
