Automation, Control & Plant Intelligence News Updates
Rockwell Automation Undertakes Restructuring Actions to Better Align Resources with Growth Opportunities; Expects Fiscal 2009 Savings of Approximately $75 Million
MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK) today announced restructuring actions designed to better align resources with growth opportunities and reduce costs in light of current and anticipated market conditions. The restructuring is the result of a comprehensive analysis of the company's cost structure and is expected to generate cost savings of approximately $75 million in fiscal 2009, growing to $85 million in fiscal 2010. In connection with these actions the company will incur a pre-tax charge in the fourth quarter of fiscal 2008 of approximately $50 million, which was not included in previous fiscal 2008 earnings guidance.
Keith D. Nosbusch, chairman and chief executive officer, said, "These actions are consistent with the cost management approach we outlined in July. Although fourth quarter revenue is in line with expectations, we believe it is prudent to take steps to address our cost structure while continuing to invest to maintain our competitive differentiation and further strengthen our global presence."
The restructuring includes streamlining administrative and operations functions, realigning selling resources to the highest growth opportunities and consolidating business units. The restructuring headcount reductions, primarily in selling, general and administrative functions, equate to approximately three percent of the Company's global workforce. Implementation will begin immediately.
The Company intends to release its fiscal 2008 fourth quarter results and hold a conference call to discuss those results on Tuesday, November 11.
This news release contains statements (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Words such as "believe", "estimate", "expect", "project", "plan", "anticipate", "will", "intend" and other similar expressions may identify forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties, many of which are beyond our control, including but not limited to:
economic and political changes in global markets where we
compete, such as currency exchange rates, inflation rates,
interest rates, recession, policies of foreign governments and
other external factors we cannot control, and U.S. and local
laws affecting our activities abroad and compliance therewith;
successful development of advanced technologies and demand for
and market acceptance of new and existing products;
general global and regional economic, business or industry
conditions, including levels of capital spending in industrial
the availability, effectiveness and security of our
information technology systems;
competitive product and pricing pressures;
disruption of our operations due to natural disasters, acts of
war, strikes, terrorism, or other causes;
intellectual property infringement claims by others and the
ability to protect our intellectual property;
our ability to successfully address claims by taxing
authorities in the various jurisdictions where we do business;
our ability to attract and retain qualified personnel;
the uncertainties of litigation;
disruption of our North American distribution channel;
the availability and price of components and materials;
successful execution of our cost productivity, restructuring
actions and globalization initiatives;
our ability to execute strategic actions, including
acquisitions and integration of acquired businesses; and
other risks and uncertainties, including but not limited to
those detailed from time to time in our Securities and
Exchange Commission filings.
These forward-looking statements reflect our beliefs as of the date of this release. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Rockwell Automation, Inc. (NYSE: ROK), is a leading global provider of industrial automation power, control and information solutions that help manufacturers achieve a competitive advantage for their businesses. The company brings together leading global brands in industrial automation that include Allen-Bradley(R) controls and services and Rockwell Software(R) factory management software. Headquartered in Milwaukee, Wisc., the company employs about 20,000 people serving customers in more than 80 countries.