For sale: mechanical, motor businesses

Staff -- Control Engineering, 8/1/2006

Rockwell Automation Inc. put the "for sale" sign on its Dodge mechanical and Reliance Electric motors and motor repair services businesses. These producers of power transmission products and motors are part of the company's Power Systems segment. Rockwell says it will retain the Reliance Electric and Reliance-branded drives and related parts and services within its global drives and customer service businesses.

Dodge and Reliance Electric, account for essentially all the revenue generated by Power Systems. For fiscal year 2006, the segment is forecast to generate about $1 billion in revenue and segment operating margins of around 15%.

The company does not expect to change its priorities for cash deployment, but says the sale will augment its focus on power, integrated control, and information solutions. In December 1994, Control Engineering reported that Rockwell purchased Reliance Electric for $1.6 billion. www.rockwellautomation.com