Nov 7 (Reuters) - Rockwell Automation ( ROK ) forecast
its annual profit below analysts' estimates on Thursday, as the
company navigates slower automation demand and headwinds from
the uncertainty in the current macroeconomic environment.
Shares of the company fell about 4.7% in premarket trade.
U.S. manufacturing activity slumped to a 15-month low in
October, its seventh consecutive month of contraction, and
factories faced higher prices for inputs.
Rockwell said it expects its current-quarter results to be
lower than the fourth quarter, but sees a gradual improvement
through the year.
The company had previously benefited from an uptick in
demand for its automation products and technology, but the
overall slowdown in manufacturing activity impacted the company
in the quarter.
In contrast, peer Emerson Electric ( EMR ) boosted its
investments towards factory automation with its proposed deal to
buy the rest of AspenTech that it does not already own
at a valuation of $15.1 billion.
Rockwell expects its annual adjusted profit in 2025 to be
between $8.60 and $9.80 per share, compared with estimates of
$10.67, according to data compiled by LSEG.
Overall sales at the company, which sells factory automation
and robotics control software, fell 21% to $2.03 billion in the
quarter ended Sept. 30, compared with expectations of $2.06
billion.
On an adjusted basis, it earned $2.47 per share, compared
with analysts' estimate of $2.41.