11:07 AM EDT, 05/07/2024 (MT Newswires) -- Rockwell Automation ( ROK ) reduced its full-year financial guidance after posting year-over-year declines in fiscal second-quarter results on Tuesday while announcing that its chief financial officer will retire.

The industrial automation company now expects 2024 reported sales to drop 4% to 6% year over year, compared with its prior view that sales would rise 0.5% to 6.5% over 2023's sales of $9.06 billion. Analysts on average are modeling for revenue of $9.1 billion for the ongoing year, according to a Capital IQ survey.

Rockwell Automation ( ROK ) now sees adjusted earnings per share in the $10 to $11 range, down from $12 to $13.50 previously and implying a year-over-year decline. For fiscal 2023, adjusted EPS climbed nearly 28% to $12.12.

"There is more excess inventory at our customers, particularly machine builders, than we originally expected," Chief Executive Blake Moret said in a statement. "As a result, we are not yet seeing the accelerated order ramp this fiscal year and are reducing our full-year guidance."

In the second quarter, revenue fell to $2.13 billion from $2.28 billion a year ago but topped the $2.05 billion Capital IQ-polled consensus. Adjusted EPS fell to $2.50 from $3.01 year over year but beat the Street's $2.16 view.

In Rockwell's intelligent devices segment, sales dropped 4.9% to $974 million for the three months ended March 31 on lower volumes and an unfavorable mix. Software and control sales tumbled about 23% to $570 million while lifecycle services' rose 14% to $583 million.

"Execution in the second quarter was solid, and we continue to see sequential order improvement," Moret said. "We are gaining share across many of our most important product lines and in North America, our largest market."

Rockwell Automation ( ROK ) has begun a search for a new CFO following an announcement on Tuesday that Nicholas Gangestad will retire. Gangestad will continue to serve in his role until his successor is found, the company said.

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