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Rockwell cuts full-year adjusted profit forecast on slower automation demand
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Rockwell cuts full-year adjusted profit forecast on slower automation demand
Aug 7, 2024 5:53 AM

Aug 7 (Reuters) - Rockwell Automation ( ROK ) cut its

full-year forecast for adjusted profit on Wednesday to reflect

slower-than-anticipated demand from customers for automation

products.

"We did see additional project delays this quarter, with

customers citing weaker consumer demand, high interest rates,

and policy uncertainty around tax, tariffs, and stimulus

incentives as the main drivers for deferring their investment

plans," said Rockwell CEO Blake Moret.

Rockwell said it expects to see sequential growth in the

fourth-quarter, but at a more gradual pace than expected.

"Margins will continue to show the positive impact of

productivity actions and pricing," Moret added.

Peer Emerson Electric ( EMR ), however, doubled down on its

plan to streamline operations focusing on its automation

products and reported higher third-quarter earnings due to a

demand increase for its valves, regulators and actuators.

Rockwell now expects its full-year adjusted profit per share

to be about $9.60, compared with its prior outlook of between

$10 and $11.

On an adjusted basis, the company earned a profit of $2.71

per share, compared with estimates of $2.08, according to LSEG

data.

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