Rockwell Automation Inc. ( ROK ) has received a $6.7 million order from a South Korean shipbuilder, Daewoo Shipbuilding & Marine Engineering (DSME). Per the deal, Rockwell will deliver control and safety equipment to the offshore industry.
Rockwell will deliver fully integrated safety solutions for an important DSME customer, Transocean, a leading international provider of offshore contract drilling services for energy companies.
The contract includes the delivery of Rockwell's portfolio of offshore solutions and a proven, robust system to four new Transocean drill ships, alongwith an option for six more ships. It follows the order (worth over $6 million) from DSME for four new offshore drillships in 2011.
Rockwell will employ its large project delivery management expertise to provide its PlantPAx control power and safety solution together with the AADvance process safety system. With the help of these systems the company will be able to deliver control and safety solutions for Transocean's offshore vessels and drilling rigs.
The deliveries are scheduled for early 2014. Key solutions for the first vessel are scheduled for completion by Jun 2014, while the additional three vessels will be completed by Oct 2015.
Rockwell Automation, which belongs to the industrial automation industry along with iRobot Corporation ( IRBT ), Fanuc Corporation ( FANUY ) and HollySys Automation Technologies, Ltd. ( HOLI ), reported third-quarter fiscal 2013 adjusted earnings of $1.54 per share, up 12% year over year. The results beat the Zacks Consensus Estimate of $1.40.
The company revised its sales guidance for fiscal 2013 to $6.3 billion from the previous view of $6.25-$6.45 billion, representing organic growth of around 1%. The outlook for earnings per share was also tweaked to $5.50-$5.70 from $5.40-$5.70.
Rockwell Automation will likely benefit from its expansion in the emerging markets. Investment in Logix, recent acquisition of China-based medium voltage drives business and restructuring activities could drive growth. However, uncertainty in the global economic scenario remains a headwind.
Milwaukee, Wis.-based Rockwell Automation is an original equipment manufacturer of industrial automation equipment, application specific integrated software and consulting design services. The company is a leading global provider of industrial automation power, control, and information solutions.
Rockwell Automation currently retains a short-term Zacks Rank #3 (Hold).