Rockwell Execs Cash $10 Million in Stock

Rockwell International Corp. Chairman Don Davis Jr. and other executives at the No. 1 U.S. maker of factory-automation equipment sold shares last month just as the stock reached a record high. The sales--the largest ever by company officials--resulted in $10.7 million for the executives, according to Washington Service, which tracks sales and purchases by officers. Davis, for example, netted at least $2.59 million, after subtracting the cost of acquiring the stock by exercising options. Retired Chairman Donald Beall reaped $6.86 million. Rockwell’s stock has rallied 47% in the last year amid investor belief that a worldwide pickup in manufacturing will boost sales of factory-automation equipment. The stock also got a brief lift after AlliedSignal Inc. said June 7 that it had agreed to buy Honeywell Inc., which generated speculation that Costa Mesa-based Rockwell might become a takeover target. These are the largest sales by each of the executives since the current Rockwell was formed in 1996, said Nancy Fedorowicz, a research analyst with First Call/Thomson Financial. Rockwell sold its aerospace and defense businesses to Boeing in 1996 and formed a new company that retained the Rockwell name. The company now specializes in automation and aviation electronics. Rockwell shares, which traded at a record high of $63.56 on May 17, rose 63 cents to close at $60.31.