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To: Lucretius who wrote (19364)	9/18/2000 5:51:27 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

Dana, Eaton and Rockwell Intl all prewarn: quote.bloomberg.com Top Financial News Mon, 18 Sep 2000, 5:48pm EDT Rockwell Says Profit to Miss Forecasts; Shares Tumble (Update5) By Leslie Miller Milwaukee, Sept. 18 (Bloomberg) -- Rockwell International Corp., a maker of factory-automation equipment, said profit in the fiscal fourth-quarter and next year will be below forecasts because of slowing demand from truck- and automakers. The company's shares fell 20 percent, the biggest decline since Rockwell was reorganized following the sale of its aerospace business in 1996. It expects earnings for the year ending Sept. 30 of $3.35 a share, or 9 cents below the average estimate of analysts polled by First Call/Thomson Financial. Dana Corp. and Eaton Corp. joined Rockwell in saying today that profit will miss forecasts because of reduced truck and auto demand. Rockwell expects fourth-quarter automation sales to be 5 percent lower than last year's as customers such as Ford Motor Co., General Motors Corp. and their suppliers put off projects in their plants. ``I've never seen anything quite as precipitous as this slowdown,'' Rockwell Chairman and Chief Executive Don Davis said on a conference call. Rockwell sells about a quarter of its automation control systems, which include sensors, motors and computers, to truck- and automakers and their suppliers. Companies are also spending less in commodity-based businesses such as oil and paper, as well as in the automotive and food industries, Davis said. A shortage of some electronic components and displays is increasing the company's material costs. Spending on improvement by the auto industry dropped 8 percent in 2000, Davis said, citing an industry study. Rockwell's customers have canceled millions of dollars of orders in recent weeks for new equipment such as assembly lines, he said. Truck Sales Shares of Milwaukee-based Rockwell fell 7.69 to 30.50 in New York Stock Exchange trading. They had dropped 30 percent in the past year. Rockwell expects fiscal first-quarter earnings to be about 20 percent below this past year's 81 cents a share and 2001 earnings to be $3.10 and $3.20 a share. The company was expected to earn $3.76 a share in fiscal 2001, according to First Call estimates. ``The fact that they preannounced is not a surprise,'' said Michael Regan, an analyst with Credit Suisse First Boston Inc. who has a ``hold'' rating on the shares. ``The magnitude is.'' North American production of heavy trucks slipped to a 270,000-unit annual pace in the first half from a record 316,000 for all of 1999 as fuel and interest costs rise. Navistar International Corp., the world's third-largest truckmaker, has said it may lay off as many as 500 workers in November at a Springfield, Ohio, plant as it cuts production. Ford closed three truck factories for three weeks to make more replacement tires available for customers affected by Bridgestone Corp.'s recall of Firestone brand tires. Eaton, Dana Truck transmission maker Eaton expects third-quarter profit to miss estimates, partly because of production slowdowns by Ford and other automakers. Operating profit at the Cleveland-based company is expected to be unchanged or as much as 10 percent lower than the $1.45 a share the company earned in the year-earlier period. Eaton was expected to earn $1.58 a share, according to First Call. Dana said third-quarter profit will fall to 41 cents to 46 cents a share, below the 86-cent average forecast of analysts. The maker of light-truck axles also cited the euro's slide against the dollar, reduced U.S. and European demand for replacement parts, and computer difficulties. Shares of Eaton dropped 1.06 to 61.94 in NYSE trading and Toledo, Ohio-based Dana fell 88 cents to 23.19. That's good for banks and financials, right?<GGG>