Rockwell Automation Lowers Guidance
January 27 2016 - 9:00AM
Dow Jones News
Rockwell Automation Inc. lowered its guidance for the year as
the industrial automation company grapples with crimped commodities
prices and currency headwinds.
The company, however, reported stronger-than-expected results
for its fiscal first quarter ended Dec. 31.
Pointing to weakening oil and commodities prices and softer
industrial production numbers, Rockwell revised its already
downbeat forecast for earnings, excluding one-time items, to a
range of $5.70 to $6.20 a share.
It had previously forecast $5.90 to $6.40 a share for the year.
On the top line, Rockwell guided for sales of about $5.9 billion,
down from its earlier call for about $6 billion.
The Milwaukee-based firm provides industrial automation and
information services for manufacturers and energy producers. The
company's results depend largely on investments in factories,
chemical plants, and in oil gas fields.
The company has seen its business pressured by manufacturers
seeking to pinch pennies amid industry headwinds. The company also
faced currency pressures, with foreign exchange volatility crimping
sales by 6.1% in the latest quarter.
Chief Executive Keith D. Nosbusch, who had previously said he
didn't foresee any growth until the later part of 2016, said heavy
industry end-market conditions had softened globally but pointed to
growth in segments such as Latin America.
Organic sales, which exclude currency impacts and acquisitions,
slipped by 3.3% in the quarter.
In all for the quarter ended Dec. 31, Rockwell reported a profit
of $185.5 million, or $1.40 a share, down from $214.2 million, or
$1.56 a share, in the year-prior period. Excluding certain items,
per-share earnings fell to $1.49 from $1.56.
Revenue slid 9.4% to $1.43 billion.
Analysts polled by Thomson Reuters projected per-share earnings
of $1.33 on revenue of $1.31 billion.
Shares, down 12% over the past 12 months, were inactive in
premarket trading.
(END) Dow Jones Newswires
January 27, 2016 08:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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