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Rockwell Automation forecasts weaker-than-expected FY profit
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Rockwell Automation forecasts weaker-than-expected FY profit
Nov 9, 2024 12:06 PM

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.

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