Earnings out. Mixed bag. Collins moving on four cylinders. k56 as expected is a drag. (COMS is likely realing)
News Alert from AP Online via Quote.com
Topic: Rockwell Intl Corp (New)
Quote.com News Item #4456444
Headline: Rockwell Earns Drop 12 Percent
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COSTA MESA, Calif. (AP) - Rockwell International Corp. said net
earnings fell 12 percent during fiscal 1997, reflecting costs in
launching its new K56flex personal computer modem and charges
related to research and the spinoff of its automotive business.
Earnings for the year dropped to $644 million, or $3.01 per
share, down from $726 million, or $3.34 per share in 1996, the
company said. Fourth quarter earnings, however, were up to $109
million, or 53 cents per share, compared with $97 million, or 45
cents per share, during the fourth quarter of 1996.
Rockwell is in intense competition with 3Com/U.S. Robotics in
the production of fast modems for PCs. Both companies hope their
systems will be adopted as the industry standard. Earnings in the
company's semiconductor systems unit also were hurt by lower prices
for its older modems and chips.
Semiconductor sales fell to $1.58 billion, down from $1.59
billion in 1996. Operating profits dropped to $231 million, down
from $330 million.
''Semiconductor systems will be facing continued uncertainty in
unit volumes and pricing in its served markets in 1998,'' said Don
Davis, Rockwell's president and chief executive.
''We expect stronger performance in the second half of fiscal
year 1998 ...,'' he said, adding the company also expects ''to
return to our long-term growth targets in 1999.''
The slowdown in semiconductor sales was offset somewhat by an 8
percent sales increase in the automation unit, Rockwell's largest
business. Sales rose to $4.5 billion, including a record $491
million in orders during September.
Sales in the Avionics & Communications division rose 15 percent
to $1.7 billion, up from $1.5 billion in 1996.
Rockwell stock was down 68 3/4 cents per share to $49.06 1/4 in late
afternoon trading on the New York Stock Exchange. |
