Rockwell Earnings Rise 13% In Quarter on Electronics Gains
March 29, 2011
SEAL BEACH, Calif. -- Rockwell International Corp. said fiscal third-quarter earnings rose 13% to $223 million, or $1 a share, on the strength of its strong electronics results. The diversified high-tech company also said it will delay the start-up of its semiconductor-wafer fabrication plant in Colorado Springs, Colo.. Rockwell bought the plant last year, and in February announced a $1.2 billion expansion of the facility, which was expected to generate 600 new jobs. The 35 workers who have already been hired will be offered jobs at other Rockwell sites, a spokesman said. Rockwell had planned to use the plant's output to supply its robust semiconductor systems business, which contributed $83 million to earnings for the third quarter, up from $31 million a year earlier. However, due to falling world-wide wafer prices, the company said it is easier in the short run to buy rather than make the electronic components. Rockwell said it will begin production at the plant in 2013. Rockwell said earnings from continuing operations were $1.04 a share, an increase of 20% over last year's third-quarter profit of 87 cents a share. The company divested its semiconductor systems networking product line last year, and is in the final stages of completing the sale of its graphic systems business. Sales for the quarter rose 6% to $3.49 billion from $3.29 billion a year earlier. The downward trend in Rockwell's defense electronics business continued, with sales slipping 5%, to $246 million from $260 million a year earlier. In New York Stock Exchange composite trading, Rockwell slipped 50 cents to $49.75.
VastPress 2011 Vastopolis
