Reflecting a continuing decline in economic conditions, Rockwell Automation, Inc. today said revenue dropped 11% to $1.19 billion in its fiscal 2009 first quarter, ended Dec. 31, 2008, and net income fell to $118.4 million, from $156.6 million in the year-ago period.
At the same time, Rockwell dramatically lowered its revenue forecast for the full fiscal year. The company said it is preparing for revenue to slide 12% to 17%, in stark contrast to the 1% to 5% decline it had predicted in November 2008. As a result, Rockwell will expand a $75 million restructuring and 3% headcount reduction effort it began in September to include an additional $165 million in savings and an as-yet unspecified number of additional job cuts through fiscal 2009.
In related news, Japan-based Mitsubishi Electric Corp. today reported a loss of 28.3 billion yen in its fiscal third quarter ended Dec. 31, 2008, on an 11% decline in sales to 807.9 billion yen. The company’s Industrial Automation Systems business posted a 22% decline in sales to 200.2 billion yen. Like Rockwell, Mitsubishi lowered its fiscal year forecast, saying it expected 2009 sales to be 11% lower than 2008 totals, and net income to be off by 94%.
Rockwell officials today said that the “synchronous global recession” has been much broader, deeper, and more sudden than they had originally anticipated, and that there is no clear indication yet when the downturn will hit bottom. Moreover, they said, the current recession is so different from earlier, manufacturing-led recessions that it is very hard to accurately predict business conditions.