Rockwell Automation to sell some of its units
Rockwell Automation Inc. has said that they are planning to sell off two industrial components units, which represents around one-fifth its revenue.
This move would help them shift their focus from making gears and motors to high-tech factory automation systems.
The two units planned for sale are Dodge mechanical and Reliance Electric motors and motor repair services. These units make electric motors to power conveyor belts and similar industrial systems.
Rockwell did not reveal how much they expect to make by selling these two units. However, these units helped the company generate fiscal 2006 revenue of about $1 billion and operating margins of about 15 percent.
Market analysts believe that these two units can fetch the company anywhere from $1.5 billion to $2 billion.