* Sees fiscal year 2011 earnings per share $3.80-$4.20
* Growth coming in Asia, Latin America, auto industry
* Q4 earnings per share $0.91, meets Wall Street view
* CEO says growth will slow in 2011
* Shares up 1 percent
(Adds stock action, CEO comment from interview)
By Scott Malone
BOSTON, Nov 9 Rockwell Automation Inc (ROK.N)
set a 2011 profit forecast above Wall Street's expectations,
saying a recovering economy will spur demand for its systems,
which help factories run more smoothly.
The U.S. company expects factory activity, a big source of
demand for its products, to rise at a slower place next year.
"While it won't be as high as in 2011 as it was in 2010, it
will still be positive," Chief Executive Keith Nosbusch said in
a phone interview on Tuesday.
He said Rockwell expects the emerging economies of Asia and
Latin America to grow at about triple the pace of the United
States. Within the United States, the company is looking for
continuing strong demand from the major automakers including
Ford Motor Co (F.N) and General Motors Co [GM.UL], which are
spending more on automation equipment, but halting capital
projects over the past two years.
Rockwell, whose fiscal year ended on Sept. 30, said on
Tuesday it expects to earn $3.80 per share to $4.20 per share
in the current year, more than the $3.76 per share analysts
expected, according to Thomson Reuters I/B/E/S.
At its midpoint, Rockwell's 2011 forecast would represent a
31 percent growth rate.
It expects revenue to rise 8 percent to 12 percent to a
range of $5.3 billion to $5.5 billion.
"We believe the organic revenue guidance looks reasonable,"
said Deutsche Bank analyst Nigel Coe. "We have already baked in
12 percent organic growth. However, implied incremental margins
look a bit aggressive."
Fellow industrial Tyco International TYC.N, which also
ends its fiscal year in September, set an initial 2011 earnings
per share target that at its midpoint would represent 8 percent
Aircraft supplier Rockwell Collins (COL.N), which Rockwell
Automation spun off in 2001 and is also on a September fiscal
year, has set a 2011 profit target that calls for roughly 9
percent earnings growth.
Other U.S. manufacturers, including General Electric Co
(GE.N), United Technologies Corp (UTX.N) and 3M Co (MMM.N),
spell out their 2011 forecasts next month.
Rockwell shares rose almost 1 percent to $66.94 on the New
York Stock Exchange.
QUARTER MEETS ANALYST VIEW
Rockwell said fiscal fourth-quarter profit came to $131.3
million, or 91 cents per diluted share, more than four times
the prior year's $28.9 million, or 20 cents per share. The
fourth-quarter result included a $150 million contribution to
the company's pension plan.
The reported profit met analysts' average forecasts.
Revenue rose 26 percent to $1.36 billion.
The Milwaukee-based company is seeing rising demand as
manufacturers, which slashed their capital spending budgets
during the recession, resumed investing in automation systems
that can help cut the cost of running their factories. Its
rivals include Emerson Electric Co (EMR.N), Germany's Siemens
AG (SIEGn.DE) and Japan's Mitsubishi Electric Corp (6503.T).
As of Monday's close, Rockwell shares were up about 41
percent for the year, more than double the 18 percent rise of
the Standard & Poor's capital goods industry index .GSPIC.
(Reporting by Scott Malone. Editing by Gerald E. McCormick and