WASHINGTON (dpa-AFX) - Rockwell Automation Inc. (ROK) Wednesday reported a modest rise in second-quarter profit on growth at both its business segments and improved margin, partly offset by higher taxes. Nevertheless, earnings for the quarter came in shy of Street estimates. Although sales for the quarter advanced from a year ago, it was also short of analysts' expectations.
Looking ahead, Rockwell tightened its earnings and sales outlook for fiscal 2012, but kept the midpoint intact.
Rockwell, which provides industrial automation power, control, and information solutions, had second quarter sales that grew 7 percent from last year.
Architecture & Software segment sales rose 7 percent from last year, and margin improved to 25.2 percent from 24.4 percent. Control Products & Solutions sales also were up 7 percent, with margins at 11.2 percent, up from 11 percent a year ago.
Nonetheless, the gains were somewhat offset by higher tax rate of 24.9 percent, compared to 18.3 percent last year, when results included discrete tax benefits.
Milwaukee, Wisconsin-based Rockwell posted second-quarter net income of $167.8 million or $1.16 per share, compared to $166.4 million or $1.14 per share last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $1.27 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the second quarter were $1.56 billion, compared to $1.46 billion last year. However, this was short of analysts' sales expectation of $1.57 billion for the quarter.
Rockwell has revised its full year 2012 earnings forecast to a range of $5.10 to $5.40 per share and sales of $6.25 billion to $6.45 billion. Earlier the company had estimated full year earnings of $5.05 to $5.45 per share and sales of $6.2 billion to $6.5 billion.
Analysts currently expect earnings of $5.37 per share and sales of $6.41 billion for the full year.
ROK is currently trading at $75.96, down $1.46 or 1.83%, on a volume of 2.49 million shares on the NYSE.
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