Rockwell ends fiscal year in the black

Milwaukee-based Rockwell Automation Inc. today reported fiscal fourth quarter net income of $131.3 million, or 91 cents per share, which was up from $28.9 million, or 20 cents per share, in the same period a year ago.
The company’s quarterly sales grew to $1.4 billion from $1.1 billion a year earlier.
Rockwell’s sales for the full fiscal year were $4.9 billion, up 12 percent from $4.3 billion in 2009.
Foreign currency translation contributed 2 percentage points to the increase.
"We capped the year with another quarter of strong revenue growth in all regions. I was particularly pleased to see very strong year-over-year growth again this quarter in China and India and strong sequential growth in Latin America and Europe. Logix grew 36 percent in the quarter,” said Keith Nosbusch, chairman and chief executive officer of Rockwell. “Our results confirm that our growth and performance strategy is working. For the full year, we grew revenue 12 percent and doubled earnings per share compared to fiscal 2009. Operating margin improved by 5 points, a great result in light of the compensation cost headwinds and growth investments we made in the second half of the year. Strong cash flow during the year enabled us to resume share repurchases, increase the dividend by 21 percent and make a $150 million discretionary U.S. pension contribution. We ended the year with a very strong balance sheet. Our performance this year is evidence that we are executing well as the recovery progresses and I want to thank our employees, customers and partners for their support throughout the year."
Looking ahead, Nosbusch said, “We believe that the global economic recovery will continue in fiscal 2011. We are starting to see signs that large capital project spending will improve, but timing remains somewhat uncertain. The growth investments we made in 2010 improve our ability to outperform the market in 2011 and beyond. For fiscal 2011 we are projecting revenue growth of 8 to 12 percent excluding currency, plus 1 percent growth from currency translation. Based on this revenue outlook, we are providing fiscal 2011 earnings per share guidance of $3.80 to $4.20.Increased exposure to mid- and late-cycle markets should help as the recovery continues. Our strong balance sheet positions us to fund organic growth, make catalytic acquisitions and return capital to shareowners. Our strategy is to capitalize on expanded growth opportunities and technology differentiation. We remain committed to innovation, deepening our domain expertise and thought leadership – all key ingredients for helping our customers achieve their productivity and sustainability goals."