UPDATE: Rockwell Automation Cuts 2009 View As More Factories Close

By Christopher Hinton

NEW YORK (Dow Jones) - Rockwell Automation Inc. reported a 25% slump in its fiscal first-quarter profit and lowered its 2008 forecast as customers closed down their factories amid the deteriorating economy.

"After a very solid October, we experienced a severe decline in customer demand during the second half of the quarter," said Chairman and Chief Executive Keith Nosbusch. "Deteriorating economic, financial and credit market conditions affected all regions and most industries, aggravated by an unusual number of customer plant shutdowns."

Shares of Rockwell Automation closed Friday at $26.04, off 4.3%. Since mid-September when the recession took hold and financial markets scaled back their lending, the stock has fallen more than 50%.

For the recent quarter, the Milwaukee maker of manufacturing power and control systems said it earned $118 million, or 83 cents a share, compared to $157 million, or $1.04, in the same period a year ago.

Sales at Rockwell Automation (ROK) fell 11% to $1.19 billion from $1.33 billion, with an unfavorable currency exchange contributing six percentage points to the decline.

Income from continuing operations was 81 cents a share. Analysts polled by FactSet Research estimated, on average, earnings per share of 83 cents and sales of $1.26 billion.

For fiscal 2009 Rockwell lowered earnings guidance downward to a range of $1.55 to $2.25 a share, from its prior view of $3.10 to $3.60 a share.

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