On Wednesday, Rockwell Automation (NYSE: ROK) cut its full-year forecast for adjusted profit 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.
However, peer Emerson Electric (NYSE: EMR) 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 (NYSE: ROK) 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.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
