* Sees fiscal 2013 profit of $5.35-$5.75 a share
* Sees fiscal 2013 sales up 1-5 percent
* "Not a lot of positive momentum," CEO says
* Quarterly earnings top Wall Street forecasts
Nov 5 Rockwell Automation Inc, which
makes systems that help factories run more smoothly, set a
fiscal 2013 profit target that calls for roughly 5 percent
growth in the face of a slowing global economy.
The company said on Monday demand for its products had
weakened in the final months of fiscal 2012, which ended Sept.
30, as customers delayed purchases of its products. Rockwell
said it would continue to look for ways to cut its operating
Rockwell also reported fourth-quarter earnings that topped
analysts expectations and its shares rose 2 percent.
"Growth rates moderated considerably as we moved through
fiscal '12, and our current underlying demand trends are flat,"
said Chief Executive Officer Keith Nosbusch. "There is not a lot
of positive momentum as we enter the new year. Each region has
its own story, but the global economic recovery seems to have
run out of steam at the moment."
Nosbusch noted that it was unclear whether customers
delaying orders would lead to cancellations.
"It is a warning side," he said in an interview. "Are delays
going to just mean the project is going to be funded and given
the go-ahead in the future or does it ultimately lead to
cancellation? That's the uncertainty that exists."
For the new fiscal year, the Milwaukee-based company said it
expected a profit of $5.35 to $5.75 per share, excluding certain
items. The midpoint of the company's outlook is about 5 percent
higher than the $5.29 a share reported for fiscal 2012.
"The combination of strong quarterly results and guidance
slightly above consensus ... is more constructive than we
expected given broader macro uncertainty," Bernstein Research
analyst Steven Winoker, said in a note to clients.
Rockwell shares rose $1.65 to $77.16 on the New York Stock
Rockwell forecast sales of $6.35 billion to $6.65 billion
for the year, for growth of 1 percent to 5 percent. Analysts
forecast $6.47 billion.
Growth will be stronger in the second half of the fiscal
year, the company said.
Rockwell said it had earned $195.2 million, or $1.38 per
share, in the fourth quarter ended Sept. 30, down from $201.8
million, or $1.39 per share, a year earlier.
Analysts on average had expected a profit of $1.32 per
Revenue rose 1 percent to $1.66 billion, also ahead of Wall
Rockwell's rivals include Emerson Electric Co,
Germany's Siemens AG and Japan's Mitsubishi Electric
Corp. Emerson is scheduled to report results on