Rockwell Lowers Earnings Estimates
Wednesday March 18, 5:08 pm Eastern Time
COSTA MESA, Calif., March 18 /PRNewswire/ -- Rockwell International
Corporation (NYSE: ROK - news) today announced that fiscal 1998 second
quarter earnings per share will be approximately 25 percent lower than
comparable 1997 second quarter earnings of 71 cents per share. These
results are driven by weaker than anticipated performance in the PC
modem business and a $10 million restructuring charge at Semiconductor
Systems.
Don H. Davis, chairman and chief executive officer, said, ''We now
expect lower second quarter earnings due to weaker than planned demand
for our v.34 and 56 kilobit modem products as customers withheld orders
during January and February awaiting release of our new interoperable
v.90 modem chipsets. We commenced shipment of the determined standard
compliant v.90 product in late February.''
Davis added, ''We are experiencing significant pricing pressure on
the new v.90 product and, accordingly, Semiconductor Systems will not
recover in the second half of our fiscal year to the extent we
previously anticipated. Although our Automation and Avionics
& Communications businesses continue to perform strongly, we expect
1998 earnings per share will approximate 1997's earnings of $2.89 per
share.''
This news release contains statements relating to future results that
are ''forward-looking'' as defined in the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those
projected as a result of certain risks and uncertainties, including
but not limited to, those detailed from time-to-time in the company's
Securities and Exchange Commission filings.
Rockwell is a global electronic controls and communications company
with leadership positions in industrial automation, avionics and
communications, and Semiconductor Systems with fiscal 1997 sales of
approximately $8 billion and 48,000 employees.
Rockwell's world headquarters is located in Costa Mesa in Orange County,
Calif.
Rockwell's World Wide Web Site: rockwell.com.
SOURCE: Rockwell International Corporation
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