On the heels of a profit warning issued last month, Rockwell Automation today reported a double-digit increase in revenue for its 2008 fiscal third quarter, while income from continuing operations fell year over year.
For the quarter, ended June 30, 2008, Rockwell reported revenue of $1.47 billion, a 15% improvement on $1.28 billion in sales in the third quarter of 2007. Income from continuing operations, however, came in at $152.6 million, or $1.03 per share, a decline from the prior year’s $167.5 million, or $1.07 per share, although an improvement on the $0.93 to $1.00 that the automation provider predicted in June’s profit warning.
The company’s top-line growth benefited from foreign currency translation, which contributed 5 percentage points, and acquisitions, which contributed 4 percentage points. Rockwell has also been able to leverage strong growth from infrastructure-based projects in Asia Pacific and Latin America, which delivered third-quarter organic growth of 26% and 19%, respectively. In addition, the oil and gas vertical grew in excess of 30% in the period, the company said.
The diversification of Rockwell’s product portfolio into plant-wide control, its success at adding process industry expertise, and its foothold in emerging markets have been stabilizing factors for Rockwell as it — along with the rest of the industry — battles macro-economic trends that are hindering U.S. and European markets.