Rockwell’s 4th-Quarter Net Income Slips 2.9%

Rockwell International Corp. on Wednesday said fiscal fourth-quarter earnings fell 2.9%, as its semiconductor business continued to post lower results.

The company’s profit from continuing operations for the quarter ended Sept. 30 fell to $169 million from $174 million. Per-share earnings rose to 81 cents from 80 cents on a decline in shares outstanding.

Costa Mesa-based Rockwell was expected to earn 79 cents a share, based on the average estimate of analysts. Its shares fell 75 cents to close at $49 on the New York Stock Exchange.

Revenue rose 8.8%, to $2.08 billion from $1.91 billion.

“The earnings growth is not as high as we would’ve expected,” said analyst Roger Threlfall of J.P. Morgan Securities. “But they’re investing in future business with high growth rates.”

Rockwell has transformed itself during the last year, shedding its aerospace, automotive and printing press businesses. After accounting for charges related to restructuring and discontinued operations, net income for the quarter rose 12% to $109 million, or 53 cents, from $97 million, or 45 cents.

Rockwell’s semiconductor division--which makes chips for computer modems and wireless communications products--posted lower earnings, as it has throughout the year. The division’s woes will probably continue into the first half of next year, Chief Executive Don Davis said.

“Semiconductor systems will be facing continued uncertainty in unit volumes and pricing” in 1998, Davis said. “We expect stronger performance in the second half of fiscal year 1998.”

The semiconductor division’s revenue rose to $424 million from $404 million, though its earnings fell to $39 million from $82 million.

Rockwell and 3Com Corp. are in a heated competition to make their 56-kilobit chips for PC modems the industry standard.

At a Glance:

Pasadena-based Jacobs Engineering Group Inc. reported fiscal fourth-quarter net income of $12.6 million, or 48 cents per share, compared with $10.5 million, or 41 cents, in the year-ago quarter.

Loews Corp. said its third-quarter income fell by about 50%, partly as the result of a $109.3-million charge related to the settlement of tobacco litigation in Mississippi and Florida. The New York company reported earnings of $197.6 million, or $1.72 a share, compared with $388.6 million, or $3.37 a share, a year ago.

Arden Group Inc. of Los Angeles reported third-quarter net income of $2.3 million, or $2.29 per share, compared with $1.2 million, or $1.06, a year ago.

Sport Chalet Inc. of Los Angeles reported fiscal second-quarter net income of $456,000, or 7 cents per share, compared with $197,000, or 3 cents, a year ago.