Rockwell Automation Inc. plans to sell its mechanical power transmission products and industrial motors businesses.
The units up for sale are the Dodge mechanical and Reliance Electric motors and motor repair services. The Milwaukee company will retain its Reliance Electric and Reliance branded drives and related parts and services.
The Dodge mechanical and Reliance Electric businesses, based in Greenville, S. C., contribute substantially all of the revenue generated by Power Systems. Rockwell said it expected the segment to generate fiscal 2006 revenue of about $1 billion and operating margins of about 15%.
Including those operations, Wall Street analysts on average expect Rockwell Automation to report earnings $1.4 billion on revenue of $5.54 billion, according to Reuters Estimates.
"We believe that they will benefit from ownership dedicated to investing and globalizing to sustain their growth," Rockwell Automation Chief Executive Keith Nosbusch said in a statement.
The company said it does not expect such a deal to change its priorities for cash deployment.