Rockwell Automation revenue drops on strong dollar

Thursday, Jul 30, 2015

Rockwell Automation Inc, which makes automation systems that help factories run smoothly, reported a 4.5 percent fall in quarterly revenue, hurt by a strong dollar and slowing industrial production growth.

Rockwell, which gets about 48 percent of its annual revenue from outside the United States, tightened its 2015 adjusted earnings forecast to $6.55-$6.70 per share, from $6.50-6.80.

The company maintained its revenue forecast of $6.4 billion.

Analysts on average were expecting a full-year profit of $6.63 per share on revenue of $6.43 billion, according to Thomson Reuters I/B/E/S.

Rockwell's revenue has taken a hit as oil and gas companies continue to cut spending due to declining oil prices. The company gets about 12 percent of its annual revenue from the oil and gas sector.

Brent crude futures have fallen about 7 percent this year. They hit a six-month low on Tuesday after Monday's Chinese stock market crash bred worries the world's biggest energy consumer may cut back demand, leading to a global supply glut.

Rockwell's net income rose 3.2 percent to $206.1 million, or $1.52 per share, in the third quarter ended June 30, from a year earlier.

On an adjusted basis, Rockwell earned $1.59 per share.

Revenue fell to $1.58 billion from $1.65 billion.

Analysts on average had expected earnings of $1.54 per share, on revenue $1.58 billion.

The company's shares closed at $119.23 on the New York Stock Exchange on Tuesday. The stock had risen about 7 percent this year, outperforming the 1.7 percent rise in the S&P 500 index.

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