Rockwell Automation Sees 2016 Results Below Estimates; Hikes Dividend

(RTTNews) - While reporting its financial results for the fourth quarter today, Rockwell Automation Inc. (ROK) said it is experiencing weak market conditions as it enters fiscal 2016 and provided financial outlook for the full year below analysts' estimates. The company also announced a 12 percent increase in its dividend.

For fiscal 2016, the company projects organic sales to be flat to down 4 percent year over year. Including the impact of currency, the company forecast sales of about $6.0 billion and adjusted earnings of $5.90 to $6.40 per share.

Analysts polled by Thomson Reuters expected the company to report earnings of $6.72 per share for the year on revenues of $6.39 billion. Analysts' estimates typically exclude special items.

Keith Nosbusch, chairman and chief executive officer of Rockwell Automation said, "Heavy industry end markets including oil and gas have not yet stabilized, and we see continued softness in key emerging markets. In our largest market, the U.S., the strong dollar is adversely affecting producers and OEMs."

"As a result, our customers are being more cautious with capital expenditures and operating spending. We therefore expect a particularly weak start to the fiscal year and don't believe we will see year-over-year growth until later in fiscal 2016," Nosbusch added.

The company's board of directors declared a quarterly dividend of 72.5 cents per share on the company's common stock, payable on December 10, 2015 to shareowners of record at the close of business on November 23, 2015.