Rockwell Increases Stock Plan by $500 Million

Rockwell International Corp. said Thursday its board increased the company’s stock buyback plan by $500 million.

The added funding gives Rockwell $650 million to repurchase shares in the future. The company has spent about $850 million in the past year buying back stock, and now has about 212 million shares outstanding.

Based on today’s closing share price of $61.81, the $650 million would buy about 10.5 million Rockwell shares.

“Building share owner value has been a central goal of our long-term strategy,” Rockwell Chairman and Chief Executive Donald Beall said.

The company also said the previously announced spinoff of its auto-parts business will occur Sept. 30. Shareholders as of Sept. 17 will get one share of that business, to be called Meritor Automotive Inc., for every three Rockwell shares they own.

Rockwell’s auto-parts business makes drive-train components for trucks and off-road vehicles, and door, seat-control, and entry systems for automobiles. It had about $3.1 billion in sales last year. The spinoff will leave Rockwell, once known for building B-1 bombers, as a leading maker of electronic products such as semiconductor chips.