Earnings Roundup: Rockwell Automation, Lincoln Electric
Industrial Distribution staff -- Industrial Distribution, 4/23/2008 6:42:00 AM
A pair of manufacturers, Rockwell Automation Inc. and Lincoln Electric Holdings Inc., announced quarterly sales and earnings results.Rockwell Automation
Second-quarter sales for Rockwell rose 16.6 percent to $1.41 billion, compared with $1.21 billion during the same period last year.
Net income for the Milwaukee-based power transmission and motion control products manufacturer fell 80 percent to $142.8 million, compared with $729.3 million during the second quarter of fiscal 2007, when the company posted a $603.2 million gain on the sale of its power systems business to Baldor Electric Co. Excluding that gain, net income rose 13.2 percent.
“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,” chairman and CEO Keith Nosbusch said. “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.”
Rockwell said it spent $98.3 million buying back 1.7 million shares of its own stock, leaving $832.1 million available under its existing $1 billion share repurchasing program for further buybacks.
The company also said it agreed to acquire Incuity Software Inc., an Enterprise Manufacturing Intelligence (EMI) software provider, for an undisclosed amount. The Mission Viejo, Calif.-based company will be integrated into Rockwell’s Architecture & Software division.
Lincoln Electric
First-quarter sales for Lincoln Electric rose 13 percent to $620.2 million, compared with $549 million during the same period last year.
Net income for the Cleveland-based electrical products manufacturer rose 11.4 percent to $53.5 million, compared with $48 million during the first quarter of 2007.
“We had an excellent start to 2008, with strong sales, profitability and cash flow," chairman and CEO John Stropki said. “Despite a very volatile economic environment and rising commodity costs, we were able to continue to leverage the strengths of our strong global market position. We remain focused on executing our long-term strategy despite softening in the industrial economic outlook by continuing to capitalize on key infrastructure development opportunities, and expanding our value-driven welding product and service offering.”
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