New PT and MRO contracts bolster Rockwell Automation’s third quarter
Milwaukee, WI -- Rockwell Automation, Inc., a global provider of industrial automation power, control and informati...
Milwaukee, WI — Rockwell Automation, Inc., a global provider of industrial automation power, control and information solutions, reported fiscal 2003 third quarter net income of $128 million. Last year’s third quarter net income was $90 million.
Sales for the third quarter were $1,033 million, compared to $995 million in the third quarter of 2002.
“We continue to be pleased with the performance of our businesses in this soft economic environment, said Don H. Davis, chairman and chief executive officer. “The management team delivered excellent results, especially in light of industrial market conditions that were slightly weaker than in the previous quarter.”
Davis added, “We are executing our strategy of balancing cost structure improvements with growth investments to improve profitability and maintain our market leadership position. Our program of Lean initiatives contributes to our improved margins while generating savings for continued investments. Continued growth in our Logix and Process Solutions businesses has resulted in market share gains.”
Davis concluded, “The timing and pace of improvement in the global economy remain difficult to predict. During the past quarter, we saw some softening in demand in the U.S. and Europe, but on balance there is no discernable trend of further weakness. We are assuming that our business will remain at the current run rate for the remainder of the fiscal year.
In other developments, Rockwell Automation continued to win new business for its family of Integrated Logix Architecture products. MasterFoods Europe, a subsidiary of Mars, Inc., selected the company as its new pan-European standard for packaging applications encompassing 26 plants. Additionally, a global tire manufacturer named Rockwell Automation its preferred supplier of automation products and services.
The company continued its development of the China market by signing several significant contracts in the quarter. Major wins include a $3 million order from Handan Steel for a drive system installation at its facility located near Beijing and a $1 million contract with a major steel manufacturer near Shanghai for a complete drive system platform to be used on its colour-coating line.
Rockwell Automation also signed a five-year global parts and services contract with ChevronTexaco. The contract includes provisions to provide motor control centres, variable frequency drives and energy efficient motors at refineries, production facilities and pipeline operations worldwide.
Rockwell Automation Global Manufacturing Solutions signed multi-year asset management service agreements with seven manufacturers. Rockwell Automation will manage maintenance, repair and operations (MRO) assets for major global companies in the food, tire and automotive industries.
During the quarter, the company received Eastman Kodak Company’s Supplier Quality Process award. The award recognizes Rockwell Automation for “demonstrating and providing year-over-year productivity improvements; world-class product/service quality levels; delivery and lead time performance that provides Kodak with assurance and flexibility; and evidence of a sound and effective quality system.”