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Rockwell Automation (ROK) Wins $50M Contract From Codelco

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Rockwell Automation, Inc. (ROK - Free Report) has been awarded a major contract, worth $50 million, by Codelco — the National Copper Corporation of Chile — to supply a number of important systems for the Chuquicamata underground mine in Chile.

Per the deal, Rockwell Automation will collaborate with Codelco to provide detailed engineering, supply and configuration, by leveraging the integrated control and information systems, connected services and domain proficiency of the former. Also, both companies will work together to assemble four control systems of the mine, comprising integrated operational platform, security system, supervision and control network, predictive maintenance and a general administrative network.

Thus, this collaboration will help transform the century-old, open-pit mine into a technologically advanced “super cave” mine. The alliance is also expected to extend the life of the mine by at least 40 years, improve asset utilization, increase mine throughput, and lower operating costs.

The project is expected to start in mid-2019, and Rockwell Automation is currently working on engineering and construction. The mine will produce around 320,000 tons of fine copper and 15,000 tons of molybdenum, annually, when operational.    

Other Developments

Rockwell Automation remains focused on growing market share by gaining new customers, and enhancing market access by building its channel capability and partner network. In line with this, the company entered into a definitive agreement this June, for a strategic partnership with PTC Inc. (PTC - Free Report) , in order to provide the most comprehensive and flexible Internet of Things (IoT) offerings in the industrial space. Per the deal, Rockwell Automation will invest $1 billion in PTC as both companies will join forces to drive growth through digital technology.

In addition to the above, Rockwell Automation joined Plug and Play’s corporate partnership network in May 2018, which provides access to qualified and strategically aligned early and growth stage startups. Rockwell Automation has also been awarded an engineer, design and procure process automation and instrumentation contract from NioCorp Developments Ltd.

Price Performance    

The company has performed in line with the industry it belongs to over the past year, as both have gained around 7% during the same time frame.

Zacks Rank & Stocks to Consider

Rockwell Automation currently carries a Zacks Rank #3 (Hold).

Both iRobot Corporation (IRBT - Free Report) and Caterpillar Inc. (CAT - Free Report) belong to the same sector, flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

iRobot Corporation has a long-term earnings growth rate of 19.5%. Its shares have gained 14%, over the past year.

Caterpillar has a long-term earnings growth rate of 13.3%. The company’s shares have been up 22% in the past year.

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