Electronics Units Lead Way as Rockwell Quarterly Net Climbs
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SEAL BEACH — Rockwell International Corp. on Monday reported a strong, 19.4% increase in third-quarter earnings, driven by results from its commercial electronics divisions.
Rockwell had net income of $197 million, or 90 cents per share, for the period ended June 30, up from $165 million, or 74 cents per share, for the year-earlier third quarter.
Revenue for the three months rose 20.7% to $3.5 billion from $2.9 billion.
Jackson Blackstock, an equity analyst at Donaldson Lufkin & Jenrette brokerage in New York City, said the results reflect the Seal Beach-based company’s efforts to slash its dependence on government and military work through its aerospace unit. That division continued to slip, finishing the quarter with $607 million in revenue, compared with $649 million a year ago. “I don’t see anything that will turn that around soon,” Blackstock said.
Rockwell’s nine-month income of $553 million, or $2.54 a share, was up nearly 18% from $469 million, or $2.12 per share, a year earlier. Sales for the nine months of $9.4 billion rose 14.6% from $8.2 billion.
Results from the recently acquired Reliance Electric, a Cleveland industrial automation company that Rockwell bought last January, nearly doubled the automation division’s sales to $1.03 billion for the third quarter, compared to $545 million a year ago. Mike Barnes, Rockwell’s chief financial officer, said the company is integrating Reliance and its Allen-Bradley division more quickly than it had expected.
Sales from Rockwell’s avionics and automotive divisions were also up from the period a year ago.
Rockwell’s stock climbed 25 cents to close at $47.625 a share with 272,300 shares traded Monday on the New York Stock Exchange.
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Rockwell Profits
Rockwell International Corp. reported increased earnings for both the third quarter, ended June 30, and the first nine months of its fiscal year. Per-share earnings for the nine-month period jumped 20%. Figures in millions of dollars, except per-share data:
3rd qtr. 3rd qtr. 9 months 9 months 1994 1995 1994 1995 Revenue $2,873 $3,452* $9,235 $9,436 Net income 165 197 469 553 Per share 0.73 0.88 2.08 2.49
* Includes $354-million sale of Reliance Electric.
Source: Rockwell International Corp.; Researched by JANICE L. JONES / Los Angeles Times
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