Rockwell Has Loss in Restructuring Unit

Avionics and automation giant Rockwell International Corp. Wednesday reported a fourth-quarter loss due to the restructuring of its semiconductor business.

The Costa Mesa-based company said it lost $126 million, or 65 cents a share, compared with a profit of $109 million, or 53 cents a share, in the fourth quarter of 1997.

The latest results include the discontinued semiconductor operations, which Rockwell plans to spin off to shareholders by the end of the year. The decision to shed the business was part of a sweeping restructuring announced earlier in the year that also included 3,800 job cuts.

Sales for the three months ended Sept. 30 edged up to $1.81 billion from $1.72 billion.

The company said it is beginning to reap the benefits of restructuring. Without the discontinued operations, it would have posted fourth-quarter operating income of $249 million, or 67 cents a share, up from $216 million, or 67 cents a share, in the same period a year earlier.

“These fourth-quarter results clearly demonstrate the strength of our automation and avionics and communications businesses and provide confidence in the stability of the continuing Rockwell for the future,” Chief Executive Don Davis said in a statement.

Rockwell said it is still committed to growing 1999 earnings to $2.90 to $3 a share as it positions itself as an avionics and automation powerhouse.

For the full year, the company posted a net loss of $427 million, or $2.16 a share, including discontinued operations and special items. The company earned $644 million, or $2.97 a share, in fiscal 1997.

Rockwell makes high-tech automation products, motor drives and heavy industrial systems as well as aviation electronics and airborne mobile communication systems and in-flight entertainment systems.

The company’s stock moved up $1.31 a share to $44.