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.
